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June 21, 2007 - 6:56AM
Mesa residences in danger of foreclosure surge, group finds
Jason Massad, Tribune
Mesa homes that are in danger of foreclosure more than doubled in April compared to the same month a year ago, according to a local community advocacy group.
Mortgage companies started the foreclosure process on 215 Mesa homes in April, an increase from 89 filings a year ago, according to realty statistics cited by the community group ACORN.
The foreclosure activities cover homes all over the city, most prominently on the older west side of Mesa.
“Foreclosures are taking an enormous toll on individual families and entire neighborhoods,” East Valley ACORN member Sophia Tesch said in a prepared statement. “We can’t just sit by and watch one more family lose their home.”
Reports show a strong correlation between foreclosures and an increase in “subprime” home mortgages, which offer higher interest rates to people who are considered credit risks, according to ACORN.
During a Wednesday news conference, the ACORN group advocated for a number of reforms that seek to crack down on what it calls predatory lending practices that can lead to foreclosure.
Mortgage companies and investors should institute a one-year ban on foreclosures involving subprime loans, the group recommends. Another suggestion: Cities, counties and the state should fund programs that offer housing counseling for home buyers and others who find themselves caught up in unfavorable home mortgages.
At the conference, Tesch said buyers should beware when financing homes.
“Do not sign anything that doesn’t look right,” she said.
Arizona has the 12th highest foreclosure rate in the country for 2006, according to ACORN. Foreclosures also are on the rise nationally.
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