Region Experiences Consistency in Foreclosure Rate
In a market whose next move is never a sure thing, it’s no surprise that half of the region’s counties have seen foreclosure rates drop while the other three struggle to fight the sluggish economy.
Crawford, Sebastian, and Franklin counties have all experienced declining foreclosure rates for the first six months of 2008, according to Realty Trac’s monthly report. From January through June, Franklin County had the largest fall in foreclosure fillings with 23 this year compared to 46 during last year. Crawford County filings fell 18 percent to 143 compared to 176. Sebastian County had two fewer foreclosures with 389.
The telltale signs of just how many homeowners are being affected came with Realty Trac’s report. In Sebastian County in June, there were 59 foreclosures, which ranked the county eighth in the state. Those filings, however, accounted for one of every 889 households in the country facing foreclosure.
According to local realtors, the number of foreclosures handled by brokers is now at the lowest it has been over the past year. Though there are still a number of foreclosures, many are from outlying areas not within the Van Buren and Fort Smith city limits, one of the reasons why Logan County (as well as LeFlore and Sequoyah Counties in Oklahoma) have had increases over the first half of the year even though they’re low compared to neighboring counties.
Logan County’s 21 foreclosures so far this year is up to 31 percent from 16 for the same time in 2007, but the county ranked 44th overall in the state for foreclosures last month. Rural homes may consist of larger acreage than those within the city and thus require a different kind of mortgage, such as in-house loans with local banks. Ken Euford, an agent withRon Calhoun and Associates in Fort Smith, says “Usually the (conventional loan) requirements don’t allow the value of the land to be greater than 35 percent of the purchase price, so it doesn’t allow you to have much land for it to be an FHA loan or some of the conventional loans.”
Logan, LeFlore, and Sequoyah counties reflect what’s happening in the state of Oklahoma, where foreclosures have increased 26 percent (to 8,599) this year. In Arkansas, filings have increased 5 percent this year to 7,255.
