Bank and government foreclosure listings in West Virginia are growing in number. This is what the state Division of Banking has reported which confirmed what the media has been reporting for almost a year.
Some media institutions reported that the number of foreclosure homes in the state is increasing. Last year, the number of foreclosed properties reached 2,577, representing a 12 percent rise from the previous year before banks headquartered outside the state accounted for majority of troubled loans.
One media report stated that a great number of properties have been foreclosed than were reported by some surveys. Some companies that monitor the foreclosure activity in the country admitted that the number of properties on bank or government foreclosure listings that they reported was understated.
According to industry analysts, state lawmakers and lobbyists continue to use these faulty figures to request for assistance for thousands of homeowners in West Virginia who lost their homes to foreclosure.
Meanwhile, the Division of Banking has reported that national banks operating in West Virginia and state-chartered financial institutions accounted for not more 11 percent of the total foreclosures since 2007.
Banking Commissioner Sara Cline said that West Virginia banks are covered by state regulation which is stricter compared with federal regulation. She added that local banks have an advantage over state banks because they know their customers and understand their markets.
In contrast, national banks are subject to lenient federal regulations. This means that they release money to borrowers who have no income, inflated appraisals and are not in a position to pay their debts.
Not all areas in the state are experiencing an increase in foreclosure rates. Some counties showing a drop in the number of foreclosure properties are Boone, Cabell, Logan Fayette, Kanawha, Raleigh and Roane.
Industry experts said that these figures include only the actual foreclosure sales. The numbers do not show homeowners who opted to sell their properties to avoid foreclosures, those who lost their houses through bankruptcy due to their failure to make mortgage payments and people who are in some kind of foreclosure process because they are delayed on their payments for at least 90 days.
Industry experts said that the increase in bank and government foreclosure listings exposed the licentious attitudes and misplaced trust of some major banks and government regulators who were responsible for protecting the public.
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