Cities search for solutions to foreclosure problem

By Ed Ernstes (ernstes@wsbt.com)

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City leaders are trying to find ways to deal with a growing number of foreclosures and abandoned homes. (WSBT photo)

By Beth Boehne

Story Created: Jun 9, 2009 at 3:05 PM EST

Story Updated: Jun 14, 2009 at 11:30 PM EST

ELKHART — Throughout Elkhart County, many people are still struggling to pay their bills in an area with the state's highest unemployment. As a result, an increasing number of homes are being foreclosed. That’s placing a heavy burden on local cities and the county.

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City and county leaders met Tuesday in Elkhart to look for solutions to the growing number of foreclosures and abandoned homes.

“There have been quite a bit of foreclosures and we've been tracking them the last year or so,” said Elkhart Community Development Manager Crystal Welsh. “[We] have a list of about 800 abandoned and foreclosed properties that we're looking at.”

Out of those 800, many owners simply try walking away from their problems, often making it the city's problem.

“Many of those have actually sold to private individuals and investors,” Welsh explained. “But there's quite a bit of lag time, so the city ends up by its nature kind of responsible for maintaining those.”

Elkhart is not alone in dealing with a surge in foreclosures; it’s much the same in Goshen.

“We do have a foreclosure problem now, that we've identified, and our feeling is it will get worse before it gets better because of the unemployment rates that we have,” said Rhonda Yoder with Goshen City Planning.

But a local group is trying to do everything it can to keep it from getting worse. LaCasa of Goshen has programs aimed at keeping people in their homes.

“We see about 50 new clients every month,” said LaCasa’s Larry Gautsche. “Last year we were able to help 39 families find a cure for their situation.”

And back in Elkhart, the city is fighting the problem with a $2.2 million neighborhood stabilization grant. The funds are being used to buy and renovate foreclosed and abandoned properties. Goshen is looking for similar funding.

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