Monica Hernandez / Eyewitness News
NEW ORLEANS -- The national foreclosure rate is down, but that's not the case in Louisiana.
According to RealtyTrac, a California-based real estate data company, Louisiana's foreclosures were up over 15 percent in the second quarter of 2011 compared with the same time period last year.
"In the past year or so, they've increased dramatically," said Tim Giroir, president of the New Orleans Metropolitan Association of Realtors. "And we feel like we'll be seeing an increase in foreclosures for the next nine to 15 months."
According to RealtyTrac, there are over 5,600 properties in Louisiana that are targeted by some foreclosure-related action.
Giroir said New Orleans isn't immune from the increase. The 35-year real estate veteran said he's never before seen so many foreclosure actions in the New Orleans metro area.
"It's weird. It's a phenomenon we see all over the city," said Giroir. "We see it in less expensive properties. We see it in high-end properties."
"We've seen it and we've anticipated there was going to be an increase in homeowners facing this," said Ranie Thompson, managing attorney for the foreclosure defense unit at Southeast Louisiana Legal Services.
Thompson attributes the increase in foreclosures to a sluggish economy, coupled with lingering issues related to Hurricane Katrina and the BP oil spill.
"I would say we've got homeowners who are now feeling the effects of the disasters that have impacted the community over the past five years, and the consequences of those disasters," said Thompson. "The common thread is usually something to do with their reduction in income, loss in wages."
Giroir also believes the rise in foreclosures is related to Hurricane Katrina. He said people paid top dollar for homes after the storm that they can no longer afford and have since decreased in value.
"In this particular market, the post-Katrina boom, so to speak, kind of created a pricing frenzy," said Giroir. "So with that happening, people probably overpaid at the time, and now they're running into problems with prices coming down."
If you're in danger of falling behind on your house payments, experts advise you to call your lender right away. They say many companies are willing to work with homeowners.
Southeast Louisiana Legal Services offers free legal aid to those who qualify. Contact the New Orleans office at 504-529-1000.
