By Rachel Swick
Cape Gazette staff
Sussex County is experiencing the highest number of foreclosures in years due to so-called exotic mortgages. The county sheriff’s office has been busy conducting the foreclosures throughout the county and Sheriff Eric Swanson says he plans to hire additional staff to help with the work.He is also considering holding sales twice a month, instead of today’s practice of holding them once a month. So far this year, there have been 511 reported foreclosures in Sussex County, most of them in June, reported the Office of the State Banking Commissioner. That’s 30 percent more than the previous high of 396 foreclosures reported in 2003.The highest concentration of foreclosures is in the Georgetown, Seaford and Laurel areas, said Gerry Kelly, Delaware’s deputy bank commissioner for consumer affairs. The increase in foreclosures is being blamed on exotic mortgages, which include subprime mortgages and quickly adjusting loans. Subprime mortgages and loan programs were being offered just to move houses in the past and now residents are paying for it.Foreclosure numbers are up on a nation-wide level too, with reports showing that more than 80 national mortgage lenders have closed or stopped loaning money. Housing counselors, bankers and realtors are also seeing the backlash of the increased foreclosure rate. The Sussex County Association of Realtors provides counseling and educational programs to teach homeowners and potential homeowners about the risks of predatory lending, said Ruth Briggs King, the association’s executive vice president. The old saying that if it sounds too good to be true, it probably is, rings true in this case. For more information, visit www.scaor.com.
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