Foreclosures remain steady for last quarter

By Laura Johnson | Alex City Outlook

Published Wednesday, December 2, 2009

The number of homeowners facing foreclosure in Tallapoosa County has risen in the past two years, resulting in an increased number of homes on the market.

While the homes are priced to sell, many of them remain vacant. That’s because would-be homeowners are having difficulty securing loans because of the lasting effects of the credit crunch, said Cal Johnson, broker and owner of Pinecrest Brokers, Inc.

“I’m having difficulty finding qualified buyers,” Johnson said. “There are some people who would have had no trouble three years ago and they have had a difficult time getting loans ... I have been totally shocked in some cases.”

Lenders have changed some of the standards they use to qualify homeowners and are now more reluctant to approve loans than they were before the housing market collapsed.

“Some of the credit underwriting standards have changed since the subprime housing problems,” said Phil Blasingame, regional president for Alliant Bank. “Some individuals who were able to qualify for home loans one or two years ago may no longer be able to.”

Between Sept. 1 and Nov. 30, 2007, there were 19 foreclosed homes in Tallapoosa County, but that was before the recession. In the next year there were 30 in the same time period.

This year there were 29 foreclosed homes reported between September and November, said Melanie Tapley, recording clerk for the Tallapoosa County Probate Office.

That brings the total number of foreclosed homes in Tallapoosa County to 120 to date in 2009. Also in 2009 just 524 homes, including the foreclosed homes, have been listed on the real estate market.

That means that approximately 22 percent of the homes on the local market have been foreclosed on.

“That’s a big number,” Johnson said. “I think we’re seeing two to three times the foreclosures we were seeing three years ago.”

However, the news is not all grim. Blasingame added that many lenders are seeking to provide loans to homebuyers.

“Individuals who have good credit and good job stability can obtain a home loan today,” Blasingame said. “The safest thing for anyone (wanting to purchase a home) to do is come to the bank of their choice and ask to be pre-qualified … it doesn’t cost anything.”

But securing loans for foreclosed homes, which are sold at about 25 percent less than they are valued, can be difficult because many of them need repair. So investors, who are able to buy the inexpensive foreclosed homes with cash, are purchasing the homes, repairing them and renting or selling the residences.

Johnson said those investors are providing a valuable service to families who need housing but will not qualify for a loan today or anytime soon. He added that for those who are able, it’s a good idea to take advantage of the abundance of foreclosed homes on the market.

“They can get more home for their money,” Johnson said.

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