In Lycoming County Foreclosures, Defaults in Credit Cards and Bankruptcies Have Been Increasing
Everything has been increasing in Lycoming County – foreclosures, defaults in credit cards and bankruptcies. Judge Richard A. Gray summed it up aptly’ “It’s not like there’s any light at the end of the tunnel.” The forecast for 2010 is cloudy and depressing.
The federal bankruptcy numbers increased by 20%, as per the figures given by Terry Miller, of USA Middle District Bankruptcy Court.
Judge Gray said that the courts were grappling with a staggering increase in such types of civil cases during the last one year. He blamed it on the unemployment rate of 10%. There seems to be little hope for the next year. The lenders (mostly the bankers) and borrowers have been appearing at court more frequently; cases regarding credit cards have also multiplied. Gray said there was an “avalanche” of credit card suits over the last two years. The debtors were defaulting in big numbers and the banks were filing cases to realize dues. The number of foreclosure cases too had increased but as yet it is less than the national trend.
Kevin Way, the Court Administrator and Judge Gray said they did not have the precise number of foreclosures for 2009 but they both said that it was much higher than that of 2008. Commenting on the numbers being less than the national trend Gray said, “It’s always the way in Lycoming County.” Gray elucidated that the county did not catch up with what was happening elsewhere in the foreclosure matter until last year.
He also observed that simultaneous with the filing by the lending group, counterclaims are being filed by the parties that are being sued. This is a new growing trend. He exclaimed, “The party getting sued has a right to file an answer to the claim.”
The crossing of swords between the two litigants generally moves forwards to filing hearing for hearing of judgments. The judge usually sends up the property for a court auction.
The work pressure of the courts has been increasing because at the last minute negotiations often lead to settlements. The previous owners do not want to lose their houses and the banks are far from keen to be saddled with more empty houses. It is largely because the original value of the house has become less than the amount of the original loan.
The only hope ahead for containing foreclosures seems to be conciliatory talks similar to the ones initiated by the Philadelphia County Court System.
The federal bankruptcy numbers increased by 20%, as per the figures given by Terry Miller, of USA Middle District Bankruptcy Court.
Judge Gray said that the courts were grappling with a staggering increase in such types of civil cases during the last one year. He blamed it on the unemployment rate of 10%. There seems to be little hope for the next year. The lenders (mostly the bankers) and borrowers have been appearing at court more frequently; cases regarding credit cards have also multiplied. Gray said there was an “avalanche” of credit card suits over the last two years. The debtors were defaulting in big numbers and the banks were filing cases to realize dues. The number of foreclosure cases too had increased but as yet it is less than the national trend.
Kevin Way, the Court Administrator and Judge Gray said they did not have the precise number of foreclosures for 2009 but they both said that it was much higher than that of 2008. Commenting on the numbers being less than the national trend Gray said, “It’s always the way in Lycoming County.” Gray elucidated that the county did not catch up with what was happening elsewhere in the foreclosure matter until last year.
He also observed that simultaneous with the filing by the lending group, counterclaims are being filed by the parties that are being sued. This is a new growing trend. He exclaimed, “The party getting sued has a right to file an answer to the claim.”
The crossing of swords between the two litigants generally moves forwards to filing hearing for hearing of judgments. The judge usually sends up the property for a court auction.
The work pressure of the courts has been increasing because at the last minute negotiations often lead to settlements. The previous owners do not want to lose their houses and the banks are far from keen to be saddled with more empty houses. It is largely because the original value of the house has become less than the amount of the original loan.
The only hope ahead for containing foreclosures seems to be conciliatory talks similar to the ones initiated by the Philadelphia County Court System.
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