Foreclosure on the rise in Lafayette

LAFAYETTE, Ind. (WLFI) - The results from a national company's study show the foreclosure rate in the Lafayette area rose from April 2008 to April 2009.

Comparing 2007 to 2008, Lafayette Neighborhood Housing Services Executive Director Marie Morse said there was an 18 percent rise in foreclosures in Tippecanoe County.  She said it's mainly within the newly constructed subdivisions on the south side of Lafayette.

Benjamin Crossing, just off 350 South in Lafayette, has had its share of foreclosures. Elizabeth Bond lives in the subdivision and witnessed the door shut on new home owners within their first year.

"I think people are mislead when they do get their home loans. Their rates go up, their payments go up and when their first year gets here and they can't afford their property taxes, they usually have to foreclose on their home because they can't afford it," Bond said.

A study done by First American Core Logic shows an increase in foreclosures for from April 2008 to April 2009. In Lafayette,  the foreclosures rose by 0.08 percent, a jump from 1.30 percent in April of 2008 to 1.38 percent in April of 2009. 

The foreclosure rate statewide dropped by 0.05 percent.  In April of 2008 the number was 1.98 percent and in 2009 of that same month, 1.93 percent.

But nationwide, foreclosures jumped 0.3 percent.  That's a leap from 1.5 percent in April of 2008 to 1.8 percent in 2009 of that same month.

Tara Cobbold lives in Benjamin Crossing as well. She said at least two homes have been lost to foreclosure near her hers. She worries about the rise in crime neglected homes can bring and the dangers abandoned property can pose.

"There was a home behind us where kids were wanted to play in there, lifting up the windows trying to get into the home, which can be a danger for them and to the home," Cobbold said.

Morse said the economy is the number one factor contributing to why so many foreclosures have hit this area.

"We're still dealing with some people who had loans that were made that were not in their best interest at the time that they got them. We're also seeing a lot more people that did have reasonable loans, even fixed rate loans that have now lost their jobs, lost their over time and are really struggling to come up with the mortgage payment because their income has declined from what they had in the past," said Morse.

Morse said LNHS offers counseling to home owners who are facing foreclosure.  They can be reached at 765-423-1284.