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Foreclosure: Don’t be the next victim
STILLWATER, Okla. – It is a scary thought: one in 33 homeowners in America is projected to be in foreclosure, primarily over the next two years, according to a report by the Pew Charitable Trusts.
In Oklahoma, one third of all mortgages issued in 2005 and 2006 were subprime loans and as a result, the study said one in 47 Oklahoma homeowners is projected to face foreclosure on their homes over the next two years.
“The borrowers struggle to make their payments, which results in foreclosure,” said Glenn Muske, Oklahoma State University Cooperative Extension Service interim associate dean, assistant director, family and consumer sciences. “This is still better than the U.S. average, but neighbors of foreclosed properties may lose on average more than $1,500 in their property value as a result.”
According to the report, states are at the forefront of developing policies and programs intended to prevent more reckless loans from being made and improve residents’ capability to stay in their homes.
The estimates from the study focus on foreclosures resulting from subprime loans made to owner-occupants in 2005 and 2006. A subprime loan is offered at a rate above prime to individuals who do not qualify for prime rate loans. These loans tend to have a higher interest rate than the prime rate offered on traditional loans.
Muske said Oklahoma has executed some programs to address its challenges with foreclosure.
“The 2003 Home Ownership and Equity Protection Act looks to curb high-cost lending,” he said. “The state’s counseling service also works with current homeowners in danger of foreclosure.”
According to a recent review, Oklahoma has experienced a 3.7 percent population increase over the past few years.
“Oklahoma’s economy is one of the fastest growing economies in the country,” Muske said. “This is a positive situation for those looking into calling Oklahoma home. When buying a home, it is important to remember not to get in over your head and establish a financial plan to help with payments.”
Oklahoma State
University, U.S. Department of
Agriculture, State and Local Governments Cooperating: The Oklahoma Cooperative
Extension Service offers its programs to all eligible persons regardless of
race, color, national origin, religion, gender, age, disability, or status as a
veteran, and is an equal opportunity employer.
Katie L.
Reim
Communications Specialist
Agricultural Communications
Services
140 Agriculture North
Oklahoma State University
Stillwater, OK 74078
405-744-6792 (Phone)
405-744-5739 (Fax)
katie.reim@okstate.edu
