As 2007 came to a close, more than 52,000 Pennsylvania homeowners were in some part of the foreclosure process, according to recent survey results by the Mortgage Banker's Association. These numbers put Pennsylvania in the top 10 foreclosure states nationally. Since 23% of loans statewide between 2005-2006 were subprime, analysts expect the foreclosure trend to continue into the next two years. In fact, One in 46 Pennsylvania homeowners are expected to face foreclosure during that time period.
Almost as telling is the number of PA homeowners who will feel the effects of the foreclosure trend. 39% are predicted to feel a pinch in their home values as foreclosure properties pop up in their neighborhoods, according to a Pew Charitable Trusts Assessment. The average loss to home values is estimated at $4,000. On the local government front, $6.6 Billion will be lost from the tax base, also impacting the homeowner who isn't in foreclosure by limiting municipal projects and budgets.
So how is Pennsylvania responding to the foreclosures in Lancaster and throughout the state? As I've posted in past articles, Pennsylvania was one of the first states to create a Homeowners Emergency Assistance Program, or HEMAP. The state has been tweaking that program to tackle assistance for financially-based foreclosures rather than illnesses, etc. The program connects homeowners with financial counselors and addresses payment issues. In addition ot HEMAP, the state offers two refinancing options: REAL (Refinance to an affordable loan) and HERO (Homeowners Equity Recovery Opportunity program) (link to PHFA page here)Under HERO, Pennsylvania homeowners have the opportunity to obtain 100% financing as a replacement for their existing loan; the PHFA (Pennsylvania Housing Finance Agency) actually purchases the loan from the lender and modifies the terms to help keep the consumer in their home.
If you are in the early stages of dealing with a mortgage challenge, it pays to contact your state agency to explore your options as soon as possible. Also, open a dialogue with your lender ASAP - accomodation programs are popping up at most mortgage servicing companies to counter the spike in foreclosure complaints. Most of all, don't do nothing! Those unopened bills won't go away...
If you are interested in a complete list of Lancaster County PA Foreclosures and regular email updates of homes listed by PHFA and banks, send me an email with your contact information and price ranges.
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For Lancaster PA homes for sale click here. Jeff Geoghan is a top real estate expert in Lancaster County, PA, and an involved community member. Jeff's work has been featured in the Lancaster Newspapers, WGAL Channel 8, PA Business Journal and Wall Street Journal. Jeff's blog on Lancaster County and its homes is nationally-featured. Contact Jeff for more help with your Lancaster PA Real Estate needs. Jeff is also a photographer - view some of his portfolio. Comments are welcome!
Good luck with your PA Forclosures, I lived in a little town called Manheim back in the early 1980's. Great area and beautifull county. Im not sure I spelled Manheim correct?
Jeff -
Great post. As someone who has learned and followed the foreclosure process from the title standpoint, I am excited to see that Pennsylvania has developed these programs. Here is Pittsburgh (Allegheny County), our foreclosure numbers are consistently on the rise.
If there is ever any way that I can be of assistance, please let me know. I would love to lend a helping hand.
Jeff- You are offering a lot of people some real and truthful information. I would add one thing, do not sign your deed over to anyone claiming that you will be renting the house back from them. They are scam artists preying on the vulnerable.