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November 29, 2007
Weathering the storm: Home foreclosures less of a problem here than nationwide
By MARIANNE KOBAK - EDFP Business Editor
ELKO - The amount of foreclosures in Elko County may have been exaggerated if the number of people who sought help from Wednesday's Mobile Resource Center is any indication.
Two people attended the two-hour help center.
Countrywide, Wells Fargo Bank, U.S. Housing and Urban Development and Consumer Credit Affiliates were on hand to answer questions or help the people who visited the center at the Elko County Library.
The scene was in contrast with a dire announcement made recently by Nevada's senior senator.
A statement from Sen. Harry Reid's office said the mobile resource this week is visiting the five Nevada counties that are “being hit the hardest by the national mortgage crisis” - Washoe, Douglas, Elko, Clark and Nye.
“People may not feel comfortable coming into a public setting,” said Matt Tuma of Reid's office. “They can still contact our office for help.”
The lack of attendees Wednesday doesn't reveal no problem exists here in Elko County - perhaps just that it is less severe than is occurring nationwide.
At least 30 homeowners in Elko have received foreclosure notices in the last year. Fidelity took out 22 legal notices for foreclosures since July 2006 and Stewart Title took out eight notices since last December, according to Elko Daily Free Press records. These are just two of several lending companies in the area.
“I'm way down as far as numbers,” said Colleen Memeo, foreclosure officer for Stewart Title. “I'm at a third of where I was last year, but we're a small part of foreclosures in the area.”
The Elko County Recorder's Office couldn't give exact numbers of foreclosure notices in the county.
Despite the low turnout Wednesday, those who staffed the center said people should have open communication with their lenders.
Tammy Cruz, Elko district manager of Wells Fargo, said when people get into trouble with their loan they need to call their lender. “The earlier on the better,” she said.
Cruz said most lenders will work with their clients because they want them to keep their home.
Jill Perry, certified consumer credit counselor of Consumer Credit Affiliates, agreed.
“If you're in trouble call your lender first and us second,” she said.
Perry said she has several clients who make $100,000 or more and they don't have a penny to their name because they “spend to their paycheck.”
“People need to understand managing money is the most important thing we can do,” she said.
Perry said people shouldn't be ashamed of being in debt.
“It's OK to be overextended, there is help,” she said. “But being in debt is not an acceptable problem yet in this country. It's still under the table. People will admit to being alcoholics or overeaters, but you can't talk about overspending.”
Perry said there are a few rules people can follow to help manage their debt.
“No one needs more than four pieces of credit,” she said. “A home loan, a car loan and two credit cards.”
Additional credit cards should be paid off and closed. Leaving a card open that isn't used - such as store cards - can worsen a person's credit, she said.
“My cards are for emergencies,” Perry said. “I travel on my debit card.”
The amount of debt on the cards also can affect a credit score. A person should not owe credit cards more than 10 percent of their annual net income. If someone makes $30,000 a year he or she shouldn't owe more than $3,000 in credit card debt, Perry said.
People don't have to wait until they're in trouble to contact the Consumer Credit Affiliates.
“We can do budget reviews,” Perry said. “You can get a reality check and budget counseling.”
To contact the nonprofit credit affiliates, call 1-800-451-4505 or on the Web at www.ccanevada.org or through e-mail at ccanv@aol.com.
Free Press business editor Marianne Kobak can be reached at 748-2719 or by e-mail at mkobak@elkodaily.com.
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