Local News

Home Foreclosures on the Rise in Wake County, Statewide

Posted March 7, 2007

Map Marker  Find News Near Me

— Strong home sales in Raleigh reflect a brisk real estate market. But there’s also a downside to rapid growth -- the notable increase of foreclosures in Wake County.

About 200 to 300 people file court papers every month in Wake County after failing to make mortgage payments.

“Buy within your means,” said Realtor Randy Scheer. “Buy something you can afford. Don’t buy a house where you’re forced to eat macaroni three times a week.”

Scheer was showing his second foreclosure house of the day on Wednesday. A day like that used to be rare, he said, but not lately.

With statewide foreclosures up 300 percent in the last seven years -- 256 percent in Wake County alone -- Scheer said disreputable lenders are partly to blame.

“They’ve allowed a lot of people to get into homes with mortgages such as the interest-only loan where two to three years later, they can’t afford what they’ve bought,” he said.

Mortgage analyst Amy Bonis agreed with Scheer, urging house hunters to secure financing that fits their needs.

“People are learning that they shouldn’t do interest-only loans,” she said. “But they can work. I have one. It’s just that people don’t know what they’re involved in.”

Real estate experts said the bottom line for home buying is to not buy into a mortgage loan without thinking long-term.


Please with your WRAL.com account to comment on this story. You also will need a Facebook account to comment.

Oldest First
View all
  • E-Diva Mar 8, 2007

    I don't know why people think everyone else is greedy just because they want to be paid for the work that they do. Don't you want to be paid for going to your job every day? Yes, builders want to make money, but it's not their fault you can't buy a home for under 100k. I'm not a builder, but I am in real estate, and I know that some lots in Cary (that are .15 acres) sell for about 90K. How is a builder supposed to build an "affordable" home on that? I suppose they could pitch a tent to keep the price of the "home" down.

  • BP Mar 8, 2007

    Everyone has to be responsible for what they borrow. If you can't afford more than a $100,000 for a home, then get used to living with your parents or in southeast raleigh. Not that there is anything wrong with that.

  • Ladidada Mar 8, 2007

    Isn't this era(error) of the Bush/Junta and The Republican Crime Syndicate wonderful?

    Rich getting Richer
    Uninsured rising
    Outsourcing Jobs
    National standing lowered

    Oh how great it is!

  • In search of justice Mar 8, 2007

    Good point Crash...the builders are greedy and the housing is being made cheaply (not to mention,cheap appliances as well). For ex, that townhome development that went up like straw. I realize the wind played its part, but they are also considering changing the laws re: building codes/fire walls - that was no coincidence.

    I too am a homeowner, with a conventional loan and no regrets. I have insider info., 1st hand knowledge, that alot of these lenders will do most anything to get you a loan. Affording it IS another story. All I can say is know your finances, don't let someone else convince you to eat oodles and noodles for the rest of your life, and enjoy a furnitureless house!! Do the math yourself and don't be scared to ask questions!! MANY questions, especially regarding the terms of your loan whatever you decide to go with.

    God bless the people loosing their homes. Its quite sad.

  • Gatsby Mar 8, 2007

    pms50 .... Good for you. Life is tough enough w/o getting caught over-extended in a loan. I hope your situation continues to get better.

  • Here kitty kitty Mar 8, 2007

    I am hoping to buy a house this year but finding one under $100,000 is nearly impossible. I paid off my store cards, and laughed at the store rep when she told me my 25%+ interest rate was one of the best. Hope to pay off last 2 cards by year's end. Then no more credit unless dire emergency! At that point I should be able to afford something on my income.

  • mrcrosby Mar 8, 2007

    photoz, hope your values don't slide. That would be a shame, then you will see the down side of interest only

  • photoz Mar 8, 2007

    Interest only loans can work, especially in the type of market that the Triangle has become.

    I have an int-only mortgage.
    I bought my house for 220K, after 1 month, 2 other houses have sold for >$250. There are new houses (diff style) being built in my sub-division that are listing for >280K. This will only drive the value of my house up.

    Granted, I got really lucky and this is not the norm, but I've got my equity without having to pay principal. So don't slam interest only just because it wouldn't work for you.

  • normalthinking Mar 8, 2007

    prepay just puts more easy upfront money in the pockets of the predatory lenders

    you must be in the industry mjburke

  • mjburke Mar 8, 2007

    Hello Normal Thinking-
    You are misinformed about the lending community. Thanks to Gov. Easleys agenda to do away with prepay penalties in NC the cost of lending money has gone UP! Prepay penalties give the lender a commitment from the borrower that they will stay in the product for at least one year. Customers are being guided by brokers who are licensed by the state and are to uphold a high ethics standard. Some borrowers just can't stand not being able to keep up with the Jones' so they buy more house then they can afford.