You wouldn’t expect a $1 million home on Easy Street on Smith Mountain Lake to end up in the same situation as a $20,000 house from inner-city Lynchburg. One was built as a lakeside mini-mansion in 2006. It has 5,200 square feet, granite countertops, cathedral ceilings and geothermal heat. The other was built in 1892 with a wood frame and siding. Its 1,500 square feet are warmed with electric baseboard heaters. Both met the same fate this year. Foreclosure. So did more than 200 other homes in the Lynchburg area. After homeowners failed to make mortgage payments, lenders ultimately took the homes to foreclosure auctions. An examination by The News & Advance of land records in Lynchburg and the counties of Amherst, Appomattox, Bedford and Campbell show that more people have lost their homes this year than last year, up 33 percent overall. From January through August, local property owners — including individuals and a few businesses — lost 211 properties to foreclosure. Records showed 159 foreclosures over the same period in 2007. read more
Auctioneer Nancy Steffen conducts a foreclosure auction on a house on St. Cloud Avenue in Lynchburg on Wednesday.
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. A mortgage loan is a secured loan in which the collateral is property, such as a home.
Losing it all: Subprime loan mess slamming doors on homebuyers in Central Virginia
| credit crunch, financial crisis, home owner secured loan | 0 comments »
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