Iowa foreclosure lawsuits up 75 percent since 2002

DES MOINES, Iowa (AP) — Home foreclosure lawsuits in Iowa have risen 75 percent since 2002 and counselors working with troubled homeowners say they are swamped with requests for help.

There were 9,622 foreclosure lawsuits filed in Iowa last year, compared to about 5,500 in 2002, court records show.

``It's overwhelming,'' said Jerri Scott, a home educator with Des Moines Citizens for Community Improvement.

A report from the Mortgage Bankers Association shows Iowa ranks 14th in the nation in the rate of foreclosures. The report indicated that about 6,600 of 364,000 mortgages in Iowa were in foreclosure, or about 1.83 percent.

A. Nurack of the Des Moines office of the community action group ACORN, said about half of the people the organization helps have adjustable mortgage rates that have sharply risen.

John Sorensen, chief executive of the Iowa Bankers Association, said Iowa-based banks avoided the loans that are hurting many homeowners.

``There was a proliferation of non-Iowa-based lenders who came into the state and marketed those products,'' he said. Such sales weren't in ``the best long-term interest of borrowers or the community.''

Scott said everyone from low-income to the wealthy are affected by foreclosures. She said she's getting more calls from middle-class families who have homes valued at $250,000 to $300,000.

In some cases, people bought homes they couldn't comfortably afford.

``They bought at the outside edge — and sometimes were encouraged to — assuming that they're going to get that next raise, that overtime, a second job,'' Scott said.

Mike Thompson, who operates Iowa Mediation Service and is working with borrowers calling the state hot line, said it takes his group an average of 93 days to resolve a case. But there's no guarantee, he said.

``Some cases are beyond help,'' he said. ``And the lender might be interested in making sense of a situation, but that doesn't always constitute help.''

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