WELLS FARGO WILL ALSO BOOST INTEREST RATES INTO DOUBLE DIGITS AFTER THE TEASER OFFERS EXPIRE, EXPERTS SAY

Foreclosure arrow pointing in both directions
October 11, 2011 6:41 PM
Ragan Robinson
HOW GASTONIA STACKS UP:

Location; 90+ Day mortgage delinquency July 2011; 90+ day mortgage delinquency July 2010; Foreclosure rate July 11; Foreclosure rate July 2010

Gastonia; Charlotte and Rock Hill metro area; 6.82 percent; 6.88 percent; 3.02 percent; 2.08 percent

North Carolina; 5.47 percent; 5.46 percent; 2.27 percent; 1.58 percent

United States; 7.2 percent; 7.89 percent; 3.44 percent; 3.20 percent

While actual foreclosures have been dropping for much of this year in Gaston County, the region’s rates tell a different story.

The Gastonia, Charlotte and Rock Hill metro area saw more foreclosures started in July of this year than in July 2010 – or any other month in the last two years, according to numbers from CoreLogic.

That’s a company that provides national and regional financial information to business and government.

Lenders were in some stage of foreclosure on more than 3 percent of the region’s mortgages. That doesn’t mean all of those borrowers will lose their property, but it does mean the lenders have gotten serious enough about getting paid to start the legal process.

Comparisons paint a muddled picture of the situation.

The Gastonia region’s foreclosure rate for this July (3 percent) was higher than the state rate (2.2 percent).

But we’re lower than the national rate of 3.4 percent for the same time period.

The number of mortgage holders getting past due notices fell ever so slightly from July 2010 to July 2011 – from 6.88 to 6.82.

Still, that means a staggering 6.8 percent of mortgage holders in the area were 90 days or more behind on payments, said CoreLogic.

That rate hasn’t dipped below 6 percent in more than a year. And, again, it’s higher than the state rate but lower than the national stats show.

What a tease from big banks

Got great credit? The big banks might be sending you some pretty sweet-looking deals.

Charlotte’s Bank of America is getting the most attention with its offer of zero percent interest on balance transfers that can also work as short-term loans.

People who accept the deal get a check from the bank. They can either use it to pay off another lender or they can deposit it as if it were a paycheck.

Here’s the catch: Fail to pay off that balance by June 2012 and you’ll get hit with what amounts to a 23 percent interest rate (22.99 percent to be exact).

Similar offers from JP Morgan, Citigroup and Wells Fargo will also boost interest rates into double digits after the teaser offers expire.

The offers come in the wake of consumer uproar over new debit-card fees from a number of the big banks. Bank of America will charge some card users $5 a month. Starting Friday, Wells Fargo will try out a $3-a-month fee for debit card users in four states. JP Morgan is getting a $3 monthly charge from some of its debit card customers.