Archive for the 'Indiana Articles' Category

Despite continuously facing problems with high levels of bank foreclosed properties and government auction homes, Indianapolis, Indiana has had some positive news lately that are related to the housing market. Recently, the nonprofit housing association, the Indianapolis Neighborhood Housing Partnership (INHP), received a grant from the Lilly Endowment Inc. worth over $6 million.

The INHP is best known for assisting low income and middle income people who wish to acquire their own homes. The group, in a way, also helps alleviate problems created by the considerable number of Indianapolis foreclosure auction properties by helping families purchase homes and by providing them with assistance to avoid falling into foreclosure which allows them to keep their homes. Having people in houses helps improve neighborhood conditions, particularly in areas suffering from large numbers of abandoned foreclosed properties.

With thousands of properties falling into foreclosed Indiana home auctions, housing experts stated that groups like the INHP are a big help to the metro area and the whole state. The nonprofit has been able to help around 2,300 residents in Marion County in 2010, with over 200 families securing mortgages with the help of the association that they used to repair their homes or purchase a new one. The agency offers a range of services aimed at potential and existing homeowners.

Aside from helping residents avoid foreclosure and loss of properties to bank and government auction homes, the agency also provides direct lending services, mortgage loan education sessions and credit counseling. It also assists homeowners and would-be homebuyers in connecting with financial companies that can help them with their purchases and other housing-related needs. According to housing market observers, the group has been successful in promoting long-term homeownership among the residents it has helped become homeowners.

In 2010, the group was able to provide loans worth over $15 million to residents who need them. The association also helps in community development programs, particularly in areas with the highest concentration of properties sold at foreclosure auctions. Almost 95% of the families helped by INHP reportedly have earnings that are 80% less than the median income of the metro area. More than 80% of the contributions received by the association are used to assist would-be homebuyers.

Housing market observers have stated that, at a time when bank foreclosures and government auction homes are at an almost record high, the assistance of INHP is very much needed. They also stated that contributors to the association, like Lilly Endowment, greatly help the recovery of the housing market of Indianapolis.

The new home construction market of Indiana performed poorly last year, according to realtors. They attributed the slowdown in housing starts activities to the huge number of foreclosed bank and government homes for sale competing with new dwellings for investors and buyers' attention.

For those who made home purchases last year, majority opted for foreclosures offered at Indianapolis home auctions and other auction sales in various areas of the state. The Builders Association of Greater Indianapolis reported that 2010 marked the worst period for home building in the region in over 25 years. In central Indiana, permits for new homes totaled 265 last December 2010, down by 5% when compared with the 279 permits issued in December 2009.

Cheap residential properties offered at home auctions in Indiana have been largely blamed for the decline in new housing projects in most of the state's local markets. In Hamilton County, considered as one of the most favored areas for new houses in the state, housing construction permits dropped by 1% last year, reaching a total of 1,354.

The decline in the number of residential construction permits is almost the same in most markets with huge supplies of foreclosed bank and government homes for sale. In Marion County, permits issued dropped to 729 last year from 772 in 2009. The total number of permits issued last year represents a considerable fall from the 2005 total, when 3,600 permits for new houses were issued in the county.

Another data cited by local market analysts demonstrates the impact of foreclosure homes auctions on new houses. Demand for single family dwellings traditionally accounts for 80% of the national residential property market. However, last year saw demand for single family residences declining by 9%. Demand for apartment spaces, however, climbed by 17.9% nationwide in 2010. The Midwest region of the U.S. posted the highest decline in home construction numbers, with activities declining by 38.4% in 2010.

Despite the national and local decline in housing starts, analysts stated that there is hope for the new housing market. They reported that construction permits for new residences jumped in December by more than 16%, giving hope that new dwellings will be able to compete with foreclosed bank and government homes for sale this year.

Indiana legislators have introduced a house repo prevention law expected to abate the worsening problem of foreclosures in the state. The law limits unfair practices and requires counseling for distressed homeowners facing the danger of losing their houses to foreclosure.

Senator Dennis Kruse believed that there is a big possibility that the housing system can be reformed and improved. He pointed out that adjustments are being made in the housing market that may lead to preventing foreclosures from further ruining lives of many homeowners.

The foreclosure-prevention legislation Senate Bill 492, which was passed and approved by Indiana Governor Mitch Daniels, contains two provisions on notification process. These provisions are expected to address the worsening house repo problem in the state.

The first notification process provision requires lenders who are planning to file foreclosure proceedings to send a notification to the delinquent borrower, 30 days before the filing of foreclosure.

This provision encourages the troubled borrower to seek the advice of mortgage foreclosure counselors. The notification should also give instructions to delinquent borrowers on how to contact the Indian Foreclosure Prevention Network.

According to Tom Dinwiddie of the Indiana Mortgage Bankers Association, lenders are voluntarily sending notifications to borrower in advance of the filing of foreclosure. He suggested that the Indiana Housing and Community Development Authority developed a standard notification that is easy to understand and is not peppered with legal jargon.

The second provision applies to the required notification that lenders should issue in the event they file for a foreclosure lawsuit. The notification should inform the borrowers that they may schedule settlement conferences by advising the court within a 30-day period.

According to Senator Karen Tallian, Indiana’s increasing foreclosure rates has adversely affected values of properties in the state. She believed that there is a great risk that property values will decline further if the foreclosure problem remains unchecked.

Tallian pointed out that it is in the best interest of the public if Indiana encourages lenders and homeowners to develop foreclosure alternatives. She added that settlement conferences in other states have proven to be successful in helping distressed homeowners understand that lending institutions are willing to work and help them remain in their properties.

Meanwhile, Dinwiddie believed that settlement conferences will be successful if borrowers take initiatives to schedule a meeting with lenders to discuss ways to prevent house repo.

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