Foreclosure filings explode
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Rock County Sheriff's Department Sgt. John Cowan accepts a bid as attorneys and plaintiffs look on at the Rock County Courthouse.
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Michael Soule, left, attorney with Consigny Law Firm puts in bids on 3 properties with Rock County Sheriff's Department Sgt. John Cowan, center, as attorney Edwin Nash waits to put in a single bid during the weekly sheriff's sale at the Rock County Courthouse.
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JANESVILLE — At its best, a recent surge in local foreclosure activity will add to the backlog of distressed properties depressing the real estate market.
At its worst, the record level of activity could be an indicator that the local economy is still in the doldrums.
Industry observers, however, don't put much stock in the latter, suggesting that a 66 percent increase in first-quarter foreclosure filings could instead be the result of aggression by lenders.
Nationwide, foreclosure activity fell in the first quarter of 2012. It increased 8.08 percent in Wisconsin compared with the first three months of last year, according to the foreclosure listing firm RealtyTrac.
Rock County Clerk of Courts Eldred Mielke said local foreclosure filings in the first quarter totaled 444, compared with 268 for the first quarter of 2011.
As filings go, January was a routine month.
That changed, however, in February, when Mielke's office received 175 filings. Another 189 followed in March.
In total, that's 150 more cases than any previous three-month period in the last seven years.
The local foreclosure activity is the most significant trend to emerge from The Gazette's most recent quarterly economic dashboard.
National foreclosure activity, as measured by the number of homes receiving foreclosure-related notices, slowed sharply in fall 2010, when claims surfaced that some banks and mortgage servicers were processing foreclosures without verifying documents.
A $25 billion settlement reached in February between the nation's biggest mortgage lenders and state officials paved the way for banks to take action on unpaid mortgages, many of which have been in a procedural limbo for months or years.
"With that settlement in February, everyone said that it would start to pick up again, and that could be what's going on in Rock County," said J. Michael Collins, faculty director of the Center for Financial Security and a professor at UW-Madison.
Collins said it's also likely a handful of those large servicers have mortgages in Rock County.
"They probably have a heavy concentration, and when they decide to get aggressive, all it takes is one of the top five servicers to make a move, and that will affect the numbers in a relatively smaller market."
Jerry Morse is the president of the Rock-Green Realtors Association and an owner of The Morse Co. in Janesville.
He, too, suspects the recent spike in foreclosure filings is an aggressive effort targeted at homeowners who have been in arrears for a long time. He doesn't believe that it's the result of new people falling upon hard economic times.
"I think that after the robo-signing thing, the lenders backed off," he said. "But now, they've started moving forward again."
Whatever the reason, the recent surge will affect the local market, he said.
While not all foreclosure filings result in foreclosures, the number of distressed properties on the market undoubtedly will grow.
Foreclosures typically sell at a discount and can drag down the value of neighboring properties. The prospect of more foreclosures means it could take longer for home prices in some areas to bounce back.
On a quarter-to-quarter basis, the number of local homes sold in 2012 was 30 percent more than in 2011, and the average price was up about 4 percent.
That's good news, Morse said.
But among March sales, 38 percent were bank foreclosures, he said.
"The fact that the number of sales went up indicates that the process is working," Morse said. "Prices aren't going to change that substantially probably for the next two or three years until we run through the inventory of bank foreclosures.
"The good news is that as long as sales go up, we're working through it."
Collins said lenders might be more aggressive now because they sense an improvement in the housing market. In months past, he said, they might have avoided starting foreclosure proceedings because it wasn't worth the effort to take back the property and list it in a depressed market.
Rather than a large wave of bank-owned homes crashing onto the market, it's likely the new crop of foreclosures will arrive in smaller waves throughout the year, industry analysts said.
They also believe many of the homes entering the foreclosure process now are properties with loans that have gone unpaid for a long time, not instances of borrowers just starting to fall behind.
"I really do think that this has more to do with the system catching up rather than new defaults," said Sandra Baner of Baner & Associates in Janesville.
Baner said she hasn't had an increase in calls from prospective clients seeking help with new foreclosure notices.
"What I have seen, albeit anecdotally, is that the whole foreclosure process is taking much longer," she said. "It used to be that if you were three months in default, you'd get a letter saying you'd better pay in 30 days or the process starts.
"Now, I've talked to some people who haven't made a payment for much longer who are just starting the process."
Rock County 5.0 assembles Rock Ready Index
While The Gazette has compiled and published a quarterly dashboard of economic indicators for a couple years, a local group is offering a new perspective.
Rock County 5.0, a five-year public-private economic development initiative designed to reposition and revitalize the county's economy, has launched its Rock Ready Index, a quarterly dashboard report on economic development.
Each quarter, the dashboard will offer statistics and information grounded in five categories: workforce, real estate, sales activity, project announcements and a profile of a recent project.
"The point of it is to document as well as highlight positive statistics that represent what's going on locally in those five areas," said James Otterstein, Rock County's economic development manager. "We want to offer a high-level, quick-hit type of report as part of our marketing approach for Rock County."
Otterstein said some of the data sets would change each quarter, while others will not.
The Rock Ready Index is available at rockcounty5.com and rockcountyalliance.com
Material from Gazette wire services was used in this story.
Apr 23, 2012 at 8:48 p.m.
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That is correct, he stole the money. No matter how it's twisted it was designated for the homeowner, not the state as a whole. Plus the fact that he said he had a balanced budget by cutting all those cuts and still has a deficit of 148 million dollars. Lovely. Let's see him twist this tune. He's a lair and a cheat. Get him out now.
Apr 23, 2012 at 6:16 p.m.
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truth1:"No fascist- correction: "as soon as we get rid of these Republican and Democrat poiticians, things will improve..........there, fixed it."
YESSSS!!!!! Bring on the independents! Lose both the Republicans and Democrats.
Apr 23, 2012 at 5:03 p.m.
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No fascist- correction: "as soon as we get rid of these Republican and Democrat poiticians, things will improve..........there, fixed it.
Apr 23, 2012 at 2:11 p.m.
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Money that was meant for the people who were (the banks admit) unfairly foreclosed upon is being used to help Walker pretend that he balanced the budget (even with it, he has failed to do this). More of the money going from the middle and working classes to the rich and their politician-stooges.
Apr 23, 2012 at 12:57 p.m.
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Why is this story "news"worthy? I've been following foreclosure listings in the Gazette for the last 4 years. There are usually 2 to 4 pages of listings of foreclosures per week. This can add up fast. Where is the surprise in any "spike"? Our local economy headed south of the equatorial doldrums long ago. What are the prospects for change? Is the glass half-empty? Can hope be found at your local bank?
Apr 23, 2012 at 12:47 p.m.
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The foreclosure settlement money said, "use it to balance your failed budget" written on the bag, because only fools would claim you stole money that was meant for a different purpose. Walker's a thief and a liar and their are dozens of examples to prove it.
Apr 23, 2012 at 12:39 p.m.
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Thanks Gandalf, I needed to read something funny today....wait, you were serious? Guess the Balrog did more damage than we thought.
Apr 23, 2012 at 10:27 a.m.
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"if your current on your payments, have a great job & make plenty of money you will not be foreclosed on!"
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That's not true at all. There are plenty of people who shouldn't be in foreclosure that are. When you have robo-signers who don't verify the documents they are signing, this can and does happen. No, it won't hold up in court but you're going to spend a LOT of time and money fighting it and going through the whole process.
Apr 23, 2012 at 8:59 a.m.
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Winter,
I thought we just did that in the last go round of elections, if i remember correctly we handed the Republicans control of the senate and the administrative branches of state government and they have been hard at work since then passing bill after bill. Can't you see "It's Working"!!!
What is wrong with you? The Democrats have been in the minority and not in charge of ANYTHING for 15 months, can't you see "IT'S WORKING"
Don't you remember the Governor the Governor called a special session so they could "FOCUS like a LASER" on jobs, jobs jobs! Can't you see "IT'S WORKING"?
Don’t you remember when the banks had to pay out BILLIONS to assist those in or ready to enter foreclosure and the Governor and the legislature decided instead to use that money to “Balance the budget” Can’t you see “IT’S WORKING” ?
Apr 23, 2012 at 8:46 a.m.
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Okay what I don't understand is this... will tell a story of a forclosed I looked at.
The women lived in the house for 20 YEARS. Owed about $50,000 and dumps the house.
1- why do you STILL owe $50 on a house that is appraised at $60?
2- the money was never spend on upkeep that is for sure.
3-You still have to live someplace and pay rent which would be equal to her small mortgage.
So you dump it on the bank??????
Listed for $25k
decent house just needed some UPKEEP. paint, carpet etc.
Apr 23, 2012 at 8:05 a.m.
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If you have doubts about wether you can afford it DON'T BUY IT ! Think your job may be in jeopardy , DON'T BUY IT ! Think your savings isn't adequate, D ON'T BUY IT ! For once in your life, do without. You don't need all the toys that everyone else has. Forget about keeping up with the Jones. Have some pride and know that you can rely on yourself.
Apr 23, 2012 at 7:35 a.m.
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Here is a powerful, very well written story about foreclosures, banks, lawn mowing and such. A human interest story with facts, figures and hypertext references throughout. Fairly long but well worth the read, IMHO:
http://www.nationaljournal.com/features/...
Apr 23, 2012 at 7:19 a.m.
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I don't want to hear about another bank bailout because of this. Let the banks stew for a while when they have no one paying for the properties and they just sit there. Maybe, then they will start working with the people instead of against them.
Apr 23, 2012 at 6:04 a.m.
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Sorry Youkillme.......one would have to be foolish to buy the "he stole the money" claim.....He used it to help Wisconsin as a whole, which is absolutely what he should have done........
Apr 23, 2012 at 5:21 a.m.
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oneday...MSNBC? You've got to be kidding! If FOX is mentioned on these blogs libbies go ballistic. MSNBC is so far to the left it makes the mainstream media look unbiased.
Apr 22, 2012 at 10:13 p.m.
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Thank Scott Walker for stealing $25 million of the foreclosure settlement money. We won't be needing it.
Apr 22, 2012 at 10:08 p.m.
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ms_sassy_wi...re-read your post SLOWLY and I think you may be able to answer your own preponderance.
"designee" being the case in point here.
RCSO Sergeant wages vs a private auctioneer...albiet an RCSO designee?
Let's think outside the box to make the most of taxpayers dollars.
Wouldn't you agree?
Apr 22, 2012 at 9:29 p.m.
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It'd be GREAT if I could learn to spell Sheriff. Just sayin'...
Apr 22, 2012 at 9:28 p.m.
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statutory obligation...846.16 Notice and report of sale. Sherrif or Sherrif designee...must be present to record/report the sale of a foreclosure at a sherrif sale
Apr 22, 2012 at 9:22 p.m.
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I'd be for the sidewalks but I'm alone on my block. Those on my street who oppose idea would rather spend money on other things. I've also been adding trees & other stuff while rest of my neighbors have done nothing. At first I was skeptical considering housing slump but regardless it needs to be done whoever occupies this house & frankly I'm sick of this economy looking bad. Some spend their money on trips & toys me personally I think upkeep is of higher priority. I don't see what is so enjoyable about waiting hours delayed in some airport or arriving at a hotel where your reservation was bumped or weather suddenly got bad.
Apr 22, 2012 at 9:06 p.m.
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theone- Now, that is yet another area that needs exploration.
Apr 22, 2012 at 8:42 p.m.
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Put the sidewalks in. If you are running ut of money then you cannot afford the house you are in. Pretty simple.
Apr 22, 2012 at 8:34 p.m.
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One thing I'd REALLY like to know is why it takes a Sheriff's Department Sergeant to play auctioneer?
In this day and age, wouldn't you think Sheriff Bob Spoden could better manage the taxpayers money?
That's one thing I'd REALLY like to know.
Apr 22, 2012 at 8:17 p.m.
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Is it really THAT far-fetched that couples and families are giving up on the idea that things "are looking up", are now running out of savings, have sold what they could in order to make living expenses, cut out services and luxuries....and are now finding themselves in foreclosure? I think that's a VERY real possibility...and whether or not things are "turning around" nationally, they certainly are not in S. WI....
Apr 22, 2012 at 8:01 p.m.
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But isn't it rare a bank would foreclose on someone if their payments are current. I can't help but think some of this is being blown out of proportion by the media. I'm not denying foreclosures have skyrocketed & might get worse but if your current on your payments, have a great job & make plenty of money you will not be foreclosed on! If you were I seriously doubt it would succeed in the courts after a fight. Its a two way contract & if you're living up to your end of the bargain a bank can't up & bail legally on a fixed mortgage.
Apr 22, 2012 at 7:59 p.m.
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The city only mows after a complaint and failure to notify the property owner. If you know of a property that a bank isn't keeping up, you still need to contact the city before that can begin.
Apr 22, 2012 at 6:25 p.m.
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onedayatatime- It just blows my mind how honest people stand for that state of affairs.
Apr 22, 2012 at 6:12 p.m.
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The robo signing has not stopped. According to a Wells Fargo insider interviewed by MSNBC:
Some families apparently were denied loan modifications after only cursory interviews, she said. Other borrowers applying for help sent comprehensive personal financial documents to a fax machine that she discovered had been unattended for weeks. Others landed in foreclosure after owing interest payments of as little as $1.18 a day, according to documents she said she reviewed. [...]
“There was one file where they weren’t even past due and they were in foreclosure status,” the loan processor said. “They’re pushing these files and pushing these files…. It’s exactly like an assembly line,” a loan processor told MSNBC. “You sign it, you push it off to a notary, they stamp it, you put it in a box and it goes somewhere else.” The next step, unfortunately, is that someone loses their home."
http://www.alternet.org/newsandviews/art...
Apr 22, 2012 at 5:48 p.m.
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The city is starting to mow lawns on foreclosed homes.I just watched them mow and trim a house down the street from me last week.The house is bank owned and has been empty since last June.
Apr 22, 2012 at 5:17 p.m.
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One thing I'd REALLY like to know is why an owner isn't held responsible for codes and upkeep when said owner is a bank.
That's one thing I'd REALLY like to know.
Apr 22, 2012 at 4:38 p.m.
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The problem with "industry observers" whoever they are is they wear rose colored glasses and do not live in reality. 444 filings in the first quarter added to the number of unsold, empty homes already adds more decay to the area; banks don't mow lawns or at least make the property look somewhat decent. Not only that but renting is expensive and there are few affordable housing options, most have questionable tenants; long waiting lists; or closed waiting lists such as the case for the City of Janesville. One positive with the increased foreclosure rate is that some renters may be able to secure a mortgage and pay a fraction of the cost of renting.
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