From the Pocono Record:
Monroe smashes home foreclosure record with 1,253 filings in 2007
Monroe County’s record-high 2007 home foreclosure rate may not be a surprise to informed observers, but it still can shock the senses.
There were 1,253 foreclosure filings with the county Prothonotary’s Office, according to final figures released by Prothonotary George Warden. The previous all-time high, set in 2003, was 941.
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The Prothonotary’s Office passed the 1,000 mark for the year by early November.The figures represent the number of home-loan default cases filed with the county to try to force buyers out of their homes. This doesn’t include local foreclosure filings in federal district court.
Monroe County, which has a population of about 165,000, already had one of the highest home foreclosure rates in the state earlier this decade.
Many have linked the foreclosures to abusive sales practices that trapped buyers in bad deals. Allegations include inflating appraisals to value and sell homes for more than they are worth in the local market, falsification of sales documents, undisclosed second mortgages hidden from buyers and the primary lenders, and onerous loan terms such as balloon payments and prepayment penalities if buyers try to refinance to a lower interest rate.
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Others contend that local foreclosures are caused by personal factors, from consumers living beyond their means to homes being lost in messy divorces. They also point to the financial and emotional costs of long-distance commuting to New York and New Jersey jobs as a contributor.
The same thing is happening in the Lehigh Valley area (Allentown/Bethlehem/Easton). Prices doubled since early 2000 and now foreclosures are up over 40% and rising. There are more rental homes on the market than in our area’s history. We have over 1 year of inventory of homes and thats rising too. Our prices have been dropping for about 1 year as well. I know people who have dropped their price 2 or 3 times and still dont get 1 viewing. These are homes priced under 200k. The local paper(THE MORNING CALL) print anything the local realtors & builders tell them. There is one reporter named Jeannie Bonner who prints so many lies/distortions it actually caused my too cancel my subscription and never buy another local paper.
The local media and the commuters want people too think the reason prices double in 6 years in because of the influx of commuters. The problem I have see is simple. If we are a so-called “bedroom community” for commuters and prices have always since the beginning of home purchasing been higher in norther jersey & NYC, why wouldnt people have been moving here for years? It’s simple, these people who commute(just like the poconos) were escaping a bigger bubble in NYC & NJ and thought that 200k home they could buy in PA was a good deal. Our geograhic location didnt change and if you were smart you could have been commuting when homes were selling for 100k and under(before 2000). Now they are finding out that 200k home was selling for 85k-100k pre 2000 and even that price was high. Now they are learning a new word, it’s called “NEGATIVE EQUITITY”.
Do the math on commuting. You drive with traffic about 2-3 hours 1 way too work that’s a total of 4-6 hours driving a day. Add in a normal 8-10 hour work day and that’s 12-20 hours spend just in the work mode. Now you must have a newer vehicle that will need major maintence. My buddy runs a garage and many people are getting 3-4 oils changes a quarter instead of the normal 1! Along with that you will only see your family on Sunday because Saturday you will be physically exhausted and need the whole day too rest. Here’s an idea, why not just become an over the road truck driver. At least then you are getting paid too put up with nonsense.
In the Lehigh Valley & Pocono area you will see prices go back too the mid 90’s and lower. I am thankful we didnt’ sell our home and never used it as a ATM for junk. We’ve seen too many locals get suckered into thinking their homes double(on paper) and spent like they were Oprah! Now many are screwed and a few are bankrupt!
I find it hard too believe there are not many people on here that either moved to the Lehigh Valley or know people who moved here. They are really screwed!