Fall in foreclosures isn't likely to last
Podcast Episode
Foreclosures are down in Rock County, but it probably not going to stay that way. Kyle Geissler reports.
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JANESVILLE — While Rock County still has some of the highest foreclosure numbers in the state, it was able to contain the rising tide that rolled over several other counties in the third quarter.
But because of the end of truck production in Janesville, the dip is likely to be more of a blip than the start of a trend, a UW-Whitewater professor said.
Between July and September, Rock County had 13.6 percent fewer foreclosure cases than for the same period in 2007, according to a report prepared by the Center for Community and Economic Development at the UW Extension. Of the seven counties in the state with the most foreclosure filings, only Rock and Waukesha counties posted declines.
On a statewide basis, foreclosure cases were up 6 percent from July through September.
Through the first nine months of the year, 616 Rock County homes were in the foreclosure process. That's 22.7 percent ahead of the pace set in 2007, when 502 cases were filed between January and September.
On a statewide basis, foreclosures are up 31.1 percent through September.
Russ Kashian, a UW-Whitewater economics professor, believes the foreclosure problem in Wisconsin has crested.
"It continues to be terrible, but it is not increasing in dramatic magnitude," he said.
Kashian said particular regions will continue to see increasing foreclosures, primarily because of recent economic troubles.
He includes Rock County on that list.
Earlier this year, General Motors announced that it would end second-shift production at its Janesville plant. That triggered layoffs of more than 1,300 workers at GM and its main supplier companies in Janesville.
Last week, GM said it would cease production in Janesville in December. The automaker and Lear Corp., one of GM's local suppliers, notified the state that they planned to lay off another 1,600 employees. Two other local suppliers told the state this week that they will lay off another 187 workers.
"It is my belief that the shutdown of GM and Lear will create a new housing problem in Janesville that is currently under the surface," Kashian said. "As a result, the decline may only be temporary."
Kashian said now is the time to prevent even more local foreclosures.
He suggests microfinancing, a provision of financial services that generally provides funding for struggling consumers.
He also would suggest local financial institutions make "small loans to bridge a small number of qualified individuals.
"If we can limit the damage, and there will be damage, we can limit the spillover," he said.
Nationwide, foreclosure rates were up 27 percent through August, according to RealtyTrac, a national watchdog on foreclosure rates.
Oct 24, 2008 at 12:52 a.m.
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I really have to laugh when people think either Obama or McCain are going to magically fix this mess. Read your history. When real estate collapses, it takes YEARS for it to recover. This thing is no where near the bottom. It keeps declining every single quarter with no end in site, and and it will not rebound for possibly decades. The bubble in housing/real estate that Greenspan created was so massive that it's collapse is going to create one of the worse economic times in decades. No President is going to fix the insane mess that the FOMC, combined with reckless congressional policy, has created over the past decade.
Oct 23, 2008 at 8:13 p.m.
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anglewings, don't worry, you will get your free handout when Obamma gets voted it.
Oct 23, 2008 at 7:44 p.m.
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Here is a solution to the housing problem....give us little people a chance! My fiance' and I have no down payment and no credit,but we can pay ALL our bills!We also have 4 children to support. How about a promise and good ol' shake of the hand? Trust someone for a change.... not everyone is out to get something for free.Some people are not afraid to work hard to pay bills!
Oct 23, 2008 at 4:56 p.m.
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Great point SpongeBob. I am glad Prof. Obvious was able to contribute to this article.
Oct 23, 2008 at 9:04 a.m.
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The Gazette should really talk to professors at UW-Madison. I might believe their analysis more since their accreditation score is a lot better than UW-Whitewater. There is a reason UW-Whitewater isn't listed as one of the top 20 MBA programs in the nation.
Oct 23, 2008 at 6:44 a.m.
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"It is my belief that the shutdown of GM and Lear will create a new housing problem in Janesville that is currently under the surface," Kashian said. "As a result, the decline may only be temporary."
Wow, this guy really is a professor. My 4 yr old could have figured that out.
Oct 22, 2008 at 8:44 p.m.
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Rep when someone owns a major part of your debt as China does of the USA you have to add their name in the title. So do you want it to be Unite People Republic of China. Under Obama the debt will grow high, and fast. Did you see the French President in front of the EU talk about the reckless Americans, and how the EU needs to be the New Economic center of the world.
I think the people that vote for Obama, and loose their homes should just join the Army. There they will get three meals, a roof over head, and fight the War with Russian as Putin eats Obama up as a coward.
Oct 22, 2008 at 7:23 p.m.
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When I walk my dog around my subdivison every day a house is going up on the market. It is so sad to see what is happening.
Oct 22, 2008 at 7:09 p.m.
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polert,
Are you sure its the peoples republic of china or is it the United Socialist States of America?
Either way our country forget how to think for its self or read mortgage loan papers.
Oct 22, 2008 at 6:13 p.m.
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IrishLady, don't vote for Brett Favre. He might tell all of our secrets to Iran & North Korea just to get back at us.
Oct 22, 2008 at 4:09 p.m.
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Yep you are getting Change goodheart it is call the Peoples Republic of China, and that is not a joke. Thanks to the Democrats that pushed banks to loan people money they could never repay.
I just went to my Bank yesterday about getting a loan for a Cabin I want to purchase. They check my credit, asked me if I had 20% to put down. Then told me no problem bring use back a excepted offer, and in three weeks you will have a closing. Banks have money to loan out I you have good credit, and not more than 42% in debt. I will be 26% percent in debt between my home, and cabin.
Oct 22, 2008 at 4:09 p.m.
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No matter who is elected we are doomed there is not a candidate option IMO. The poor one that does get in is not gonna have enough time to get us out of the mess we are in Not even 8 years can help. Everyone voted before but it is odd no one claims they voted for Bush jr. Im still voting for Brett Favre
Oct 22, 2008 at 4:01 p.m.
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You're right. George Bush forced me to buy a house I couldn't afford and then forced me to sign a loan agreement I didn't understand. Damn that George Bush.
Oct 22, 2008 at 3:52 p.m.
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I totally agree
Oct 22, 2008 at 11:10 a.m.
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Driving down a typical street in Janesville the signs you see are; Obama, Obama, For Sale, For Sale, For Sale, McCain, Obama, Obama, Obama, Real Estate Auction, For Sale, For Sale, For Sale, Obama, Obama, Obama, McCain For Sale...... Every For Sale sign I see is another sign for Obama in my eyes! We need change!
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