Thursday, January 16, 2003

A story released today by the Mail Tribune reports that Oregon resident Toni Kay Carling, a 39-year-old single mother of four, bought her first home three years ago in Quiet Village for $115,000 with the help of the federal Rural Development Agency. Now, unable to keep up payments, she may lose it.

Carling, who works 25 hours a week in the Costco deli for $12.15 an hour, needs another miracle after her 15 delinquent payments prompted foreclosure proceedings against her simple three- bedroom house at 920 Glendower St.

Carling said her attempts to work out a payment plan with the local Rural Development agency were turned down. Bret Dixon, of the Medford office, declined comment, saying the agency cannot speak to cases under foreclosure.

The cold legal notice in local newspapers stated that "Toni Kay Carling, an unmarried woman" is in default for $9,238.35 plus $6,921.48 in payoff and fees on a low-interest loan.

Carling isn’t the only Jackson County homeowner facing foreclosure. Twelve foreclosures appeared in published legal notices one recent day.

Statewide, the residential foreclosure rate topped 1 percent of all home loans, the highest level in nearly two decades.

"It’s a bittersweet situation," said Mark Wauge of Cox, Beard & Jacobsen LLC Mortgage Loans and Investments, Medford. "The mortgage rates are way down and it’s easier to get money, but we’re in an economic slump and an increasing number of people are losing their homes, jobs and vehicles."

Homeowners starting to fall behind on payments should not ignore warnings from lenders, said Moe Ross of Bob Forrest Loans & Investments, Medford.

"The best strategy is to act quickly, before missed payments drop your credit rating," he said. "Lenders hate to lend when they see several payments 30 days late plus a 60-day late payment.

"Refinance or get a second (loan) now, get the lower rates and maybe cut your house payment from $1,200 to $1,000. That could make the difference and keep things afloat. If that’s not possible, you have time to sell and get your money out."

Even the refinancing option will become less attractive in coming months, said Mike Towery of Countrywide Home Loans in Medford, as rates climb into the 7 or 8 percent range, probably by next year.