Local News

Study: Wake Foreclosures on Rise

Posted June 20, 2007
Updated July 4, 2007

— A new study on foreclosures in Wake County has been released, and it suggests some neighborhoods are facing an epidemic.

According to the group, the Association of Community Organizations for Reform Now (ACORN), mortgage companies filed 169 foreclosures in Wake County in 2006. This year, that number has nearly doubled to 283.

The group's study also identifies the top 10 ZIP codes in Wake County with the highest number of those in the foreclosure process in April 2007.

The Wake County ZIP code with the highest number of foreclosures filed in April was 27610 in Raleigh, with 43 total filed. Garner was next with 21 foreclosures filed at the ZIP code, 27529.

Rounding out the top three is another Raleigh ZIP code, 27616, with 20 foreclosures filed in April.

Experts said around 60 percent of foreclosures are from people in the subprime market, those who have less-than-perfect credit histories.

"Credit scores won't be as high as other borrowers, and they'll typically pay higher rates for anything they borrow," said Paul Stock, of the North Carolina Bankers Association.

Stock said the problem is when those borrowers hook up with lenders who try to take advantage of them.

"The biggest contributor has been some poorly conceived lending products either intentionally or unintentionally," he said.

Subprime mortgages often have prepayment penalties and adjustable interest rates that skyrocket, which can pave the way toward foreclosure for people who already struggle with  bills.

State lawmakers did pass the nation's first set of anti-predatory lending laws in 1999, but there are attempts this year to strengthen those laws. One bill makes mortgage fraud easier to prosecute.

Another bill requires that the name of mortgage loan broker be printed on the deed, so that if the home does foreclose, then authorities can track the brokers to see if there's a pattern.


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  • lizard Jun 20, 2007

    I'm hoping I can find a good deal on a boat or car from all this. Looks like they'd sell off that stuff first before being foreclosed on.

  • fatkatts2 Jun 20, 2007

    Angora! Excellent comment and so true! I live in a 22 yr old single wide mobile home with good neighbors in a convenient location. It's paid for. Both my cars are paid for. I have no credit card debt. A lot of people would call me a "loser" for living in a trailer. My "friends" used to tell me all the time...you need to buy a house..it's so easy. I kept telling them "NO..I don't want the worry". Well, guess what? I'm glad I stuck to my plan. I have money in the bank, no debt and sleep good at night. What more could you want?
    Angora's great comment:
    " Look around. People are demolishing smaller homes with 14" plaster walls so they can have a cardboard McMansion. It's all about appearances, not quality. These poor folks are literally buying into a fantasy existence and their greed is clouding their judgment. Personally, I welcome a recession. We need a reality check.

  • I Hate Hippies Jun 20, 2007

    the biggest question in my mind - who in their right mind would want to live in wake county in the first place?!

    Silly county with the state capital, it's all about crooked politicians pandering to big business and people living in hamster housing

  • shine Jun 20, 2007

    Get rid of the Countrywides and the Ditechs

  • ladyblue Jun 20, 2007

    mom-- You are right. My kids were smart enough to do that and get a house they could afford. I'm from the old generation where we charged nothing except our home. There weren't even credit cards or I never saw one in my small town. There are plenty of people who don't have their priorities in order for financing anything. Working with social services showed me that.

  • Pack1966 Jun 20, 2007

    I'm sorry for anyone that loses their home, and it's not always because they budget poorly. But, if the subprime market goes belly up, maybe residential developers will not be so quick to build in Wake County. And if they (residential developers) go away, the homes (a few years old) that are already on the market will begin to sell, the population increase will level off, and we MIGHT be able to better manage the Wake County budget and other issues that this rapidly rising population caused.

  • ladyblue Jun 20, 2007

    Handle with care you are correct when it comes to Section 8. There are loans by the federal government with lower rates that allows people to own their first home. I think the problem is the lenders also. The worse someone credit is or not credit will pay higher rates. The lenders will trick those people into fraud and they don';t even know it. When i Henderson we had a man whose now in jail who owned a manufacturing land package and the same thing happened. Foreclosurs everywhere. They found all kinds of ways that crook tried lelnding and customers. Federal government stepped in and now he's pulling time and those people were given their homes back, with better terms.

  • wcnc Jun 20, 2007

    ladyblue- you may have been talking about my post, but I had said I didn't see how a family earning $60-100,000 per year couldn't afford a home..... But, your point is right- if they qualify to buythe home based on 2 incomes and lose oneof them, there is a good chance they will lose their home. The answer to that is to qualify on only one income, but few chose to do that, because then they can't get the big house that they want, but think they need....

  • shine Jun 20, 2007

    Sometimes these people, however mortgages are represented lose the house to companies going overseas or Mexico -----

  • Handle With Care Jun 20, 2007

    I know a famiy that had a nice home. Section 8 moved in and now it is a very bad neighborhood. They have had the house on the market for quite sometime now. I know that they will not be able to get what they paid for it, thanks to Section 8. I think people that are on Section 8 should only be able to receive help for a certain length of time if they have an able body.