Local lenders differ with sales report

Financial and consumer information analysts with CoreLogic released a report this week that posted a foreclosure rate increase of more than 2 percent for the Houma-Thibodaux metropolitan statistical area in 2010, along with a boost in foreclosures and 90-day delinquency rates for the entire state of Louisiana to 2.9 percent and 6.6 percent respectively.

According to the CoreLogic data, the rate of foreclosures on outstanding mortgages for the Houma-Thibodeaux area increased between December 2009 and December 2010 by 0.56 percent to a level of 2.07 percent.

At the same time, 90-day or more mortgage delinquency for the metropolitan area was at 4.87 percent at the end of December 2010, which is a decline of 0.37 percent from the December 2009 level of 5.24 percent.

In December 2010, the number of homes with a mortgage in real estate owned status was at 0.21 percent. These homes were not sold at auction, and in turn were returned to the lender’s possession. That REO level was down from the 0.23 of homes in this category in December 2009. The state level during the 12-month timeline was compared with a starting point of 0.33 percent in December 2009 that increased to 0.38 by December 2010.

In each instance, the highest levels of mortgage delinquencies and foreclosures occurred during the months of December and January.

The Associated Press recently reported that during 2010, buyers grabbed approximately 2,500 homes that were at some level of foreclosure in Louisiana.

According to RealtyTrac, foreclosed homes accounted for almost 10 percent of the home sales in Louisiana last year, which was actually down 4.4 percent from the level of foreclosed homes being bought in 2009.

While federally backed institutions and national lenders have reported most of the losses on bad loans, local lenders have said the trend does not fit for them.

“Actually our foreclosures are not up,” said Coastal Commerce Bank branch Manager Rachel Beebe. “We work with our customers and try to recognize problems early and work with them, maybe even restructure their loans.”

“We don’t have any foreclosures,” said John Dunn, owner of Houma Mortgage and Loan. “We’re a small operation and really do not keep up with all of that.”

“We do mortgage loans with a 30-year fixed rate, but once we close the loan it goes to a mortgage company and we’re out of the loop,” Bebee said.

According to NeighborWorks America, approximately 1 out of every 200 homes will be foreclosed upon and every three months 250,000 homeowners enter a level of foreclosure.

During the past five years many financial analysts have blamed risky loans to less than qualified borrowers for an increase in delinquency and foreclosure rates. When those cases are not resolved, the properties are often turned over the local officials for auction.

Today the Terrebonne Parish Sheriff’s Office has 13 homes on the auction block due to foreclosure.