Muncie reports that more than 700 homes are foreclosing

The impact of higher taxes, higher food and fuel costs and job loss
can push homeowners over the financial brink and into foreclosure, experts say.

.

Excerpt from The Star Press:
Relief coming?
The reasons for the foreclosure crisis, locally and nationally, are varied. Around the country, a boom in home prices and sales several years ago prompted millions of subprime mortgage loans to people who found it impossible to keep up once monthly payments increased due to interest rate hikes.

Muncie and Delaware County didn't experience a home sales boom in the early 2000s -- and avoided the subsequent freefall -- but the community has been and will continue to be hit hard by the loss of well-paid jobs like those in automotive parts manufacturing.

Also taking a toll was a mid-2007 property tax increase of 30 percent or more. Throughout Indiana, the property tax increase prompted protests and legislative action that is expected to produce some tax relief.

That relief is too late for some, however.

"The increase in property taxes caused my mortgage payment to jump from around $470 a month to almost $600," Bouslog said. At about the same time, she said, "I was struggling last year with winter utilities. They were ridiculous."

The impact of higher taxes, higher food and fuel costs and job loss can push homeowners over the financial brink and into foreclosure, experts say.