New Survey Indicates a Rise in West Virginia Home Foreclosures; Majority are from Out of State Lenders 

According to the Division of Banking survey, a total of 2,296 foreclosures occurred in 2007 and 2,577 in 2008. Significant increases in counties such as Berkeley and Jefferson more than offset decreases in other populous counties such as Cabell and Kanawha in the years examined.

Cline noted that West Virginia state-chartered banks and the national banks headquartered in West Virginia accounted for less than 11% of the two-year total foreclosures.  “That is a tribute to the sound lending practices of our community banks.  They understand both their markets and the needs of our citizens,” Commissioner Cline said. 

The Division of Banking conducted a county by county survey of foreclosures to obtain accurate data for years 2007 and 2008.  The survey was undertaken in early 2009 after statistics, which are widely publicized nationally, were alleged to be undercounting totals for rural states such as West Virginia. The Division of Banking survey results support this allegation. In addition national data sources do not count foreclosures from all types of residential mortgage lenders. However, the Division of Banking survey does include such data.

Legislation, sponsored by Delegates Moore, Webster, Shook, Caputo, Barker, Fleischauer, Fragale, Miley, Marshall, and Perry, was passed by the 2009 West Virginia Legislature which requires trustees conducting residential mortgage foreclosure sales to report data to the county clerks. The county clerks are then required to submit periodic reports to the Division of Banking for compilation.  “We are hopeful that this new law, House Bill 3082, and the cooperation of the county clerks and the trustees, will allow us to provide accurate statewide data going forward,” said Sally Cline, Commissioner of Banking.

To view the complete report, visit www.wvdob.org.   

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