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home > radio > maine news > news story Maine NewsMonthly Foreclosures In Maine Surge In June
Foreclosure filings in Maine jumped more than 14 percent between May and June, and more than 60 percent compared with a year ago. That's according to the June survey released Thursday by RealtyTrac, a seller of default data that tracks foreclosures monthly. Last month, the company says, nearly one in 500 U.S. households received a foreclosure filing. According to the survey, June was not a good month for Mainers struggling to hang on to their homes: 99 notices of default were filed during the period, and banks seized 34 Maine homes. The figures come as no surprise to Will Lund, head of Maine's Bureau of Consumer Credit Protection. He says, "I think the idea that Mainers somehow avoided what is really a national phenomenon, that belief is incorrect. In other words, Mainers were still subject to the same tempting offers, the same discounted rate mortgages that were prevalent across the country, and many of those consumers are now finding that they're unable to maintain their payments." Many of those consumers are turning to Lund's office for help. He says calls from struggling mortgage holders have risen dramatically over the last 18 months and are now the most common the bureau receives. Lund says the complaints typically fall into three categories: consumers saddled with loans that violate the law, homeowners falling behind in their mortgage payments, and those with legitimate loans who got in over their heads. Lund explains, "And those are very difficult. We encourage consumers to communicate with their lenders either directly or through our office to try to structure a short sale or some other measure that will result in no deficiency balance or a minimal disruption to consumers’ lives." Lund says the Bureau can usually help consumers with illegal loans or those who might need a temporary break on their payments. Despite the gloomy figures, Maine appears to be suffering far less foreclosure activity than many other states. The survey ranks Maine 38th in the nation, far behind states like Nevada, for example, where one in every 122 households is now facing foreclosure. Members of Maine's banking industry say the housing market here never got as hot as it did in many other states. Mark Walker, an attorney and vice president with the Maine Bankers' Association, says, "In some of those states - Nevada is one, California, Florida - there was a lot more speculation, a lot more increase in home prices, and of course they have a much higher volume of loans, lending in general, so they've had much worse experience with higher foreclosure rates." Walker says while other lenders were jumping on the speculation bandwagon, Maine banks remained relatively cautious. Stefan Keenan of South Portland-based Keenan Auction Company says he's seen about a 20 percent increase in foreclosure activity over the past year - not the 60 percent plus reported by RealtyTrac. Keenan says that's because his company deals only with properties seized by local banks: "The Maine banks have been conservative in their lending practices. They remember the pitfalls of the late eighties and the early-nineties and so traditionally, they're a very conservative lending group." Keenan says he saw a much bigger increase in his auction business during the housing crisis in the early 90's. But he says he's not sure the market has yet hit bottom, especially among properties at the lower end of the scale: "I just simply don't know what a lot of these lower-income families are going to do that have a home and they're faced with a $1500 oil bill. They've got to make a decision: keep my family warm or pay the bank, and I think it's pretty clear what they're going to do." But Keenan says the shrinking housing market isn't bad news for everyone. He says it could yield some bargains for solvent borrowers. Keenan says he's seeing more investors coming to the company's sales, but they might have to hold on to the properties for a while before their investments yield any equity gains.
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