District 4 foreclosures up 55 percent in 2008

Pima County District 4 Supervisor Ray Carroll says that home foreclosures within his district have increased from 1,280 in 2007 to a projected 1,978 in 2008, an increase of 55 percent.

A study by the Southwest Fair Housing Council dated Sept. 15 shows that the percentage of foreclosures over a five-year period from 2002 to 2007 increased in every ZIP code in Pima County, according to a recent Pima County Board of Supervisors press release. Seven ZIP codes showed increases of more than 50 percent.

Carroll stated that Pima County had 4,640 foreclosures in 2007, and the number was expected to rise to 8,590 for 2008. This is an increase of 3,950, or 85 percent.

“Foreclosures hurt everyone in the community, not just the individual families involved,” Carroll said. “Foreclosures reduce the value of all homes in every neighborhood, wiping out hard-earned equity in every home and, not incidentally, reducing the county’s property tax income.

“As the economy worsens and job layoffs increase, more and more families may face the grim prospect of losing their homes. The county should try to help.”

In what could be a win-win proposal, Carroll said the county could play the role of the “Good Broker” by bringing together potential foreclosure victims, the courts and the lending institutions. He said the courts could freeze each foreclosure action for 90 days, direct the affected homeowner to meet with their lending institution and try to work out a new mortgage payment arrangement that would avoid foreclosure.

Banks, Carroll said, are not interested in becoming property owners. While the county cannot force lending institutions to participate, he says it’s in their “enlightened self-interest” to do so.

Tom Ward, apecial assistant to Carroll, said the people suffering the most are those who purchased homes in 2005 and 2006 when interest rates were rising.

“People purchased homes with interest rates that would balloon, and some should not have purchased a home.

“Courts should mandate a 90-day cooling-off period for the homeowner and bank to get together and try to avoid a foreclosure by perhaps lowering the interest rate or extending the term of the mortgage,” Ward said.

Carroll said that beginning Dec. 15, the Federal Housing Finance Agency (FHFA), along with 33 financial institutions, will be starting a loan modification program to help families who are three months or more behind in payments. There are eligibility requirements to participate.

“A County ‘Good Broker’ foreclosure elimination program could work with the FHFA program and other programs to help reduce the number of home foreclosures in District 4 and throughout the entire County. Our goal should be to help as many families as possible,” he said.

In a comparative study of the number of foreclosures by ZIP codes within District 4, in 2007 there were 16 foreclosures in Green Valley ZIP code 85614, which included the new 85622 ZIP code. For 2008, 25 foreclosures are projected, using actual numbers for the first three quarters and projcted numbers numbers for the last quarter.

For ZIP code 85629, which includes Sahuarita, foreclosure numbers for 2007 and 2008 (including projections) were 62 and 95, respectively.

Carroll praised the Southwest Fair Housing Council for “the outstanding job it did in preparing ‘The American Nightmare’ report on the current crisis and its impact on Pima County.”

District 4 covers the eastern and south central portions of Pima County and includes the eastern portion of Tucson and unincorporated communities of Vail and Green Valley and a portion of the Town of Sahuarita.

Ellen Sussman is a freelance writer in Green Valley. Contact her at ellen2414@cox.net.