• BUILDER: Lewis Homes of Indian Trail. The company constructed 17 Hamilton Oaks houses. Nine foreclosed (53 percent). The houses were sold through real estate agents.
Company president Tom Lewis says he believes lower credit standards are a major factor contributing to the rising number of foreclosures. Even so, he points out that the majority of homeowners in Hamilton Oaks haven't foreclosed. Those owners "get into houses and enjoy the benefits of home ownership," Lewis says.
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• BUILDER: Barber Builders of Charlotte. The company built 38 Hamilton Oaks homes. Five foreclosed (13 percent). They also were sold through real estate agents.
Freeman Barber Jr., company president at the time, says he's surprised and concerned about the high foreclosure rate in Hamilton Oaks. "Our intention is to give people the American dream. That's the basis of our business plan. This sounds like a terrible nightmare."
He says buyers' loan information isn't disclosed to his company, which didn't make the loans. But he would like to see changes that would prevent so many foreclosures.
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• MORTGAGE BROKER: Sharon Borst of First Carolina Funding Co. She says she arranged mortgage loans for a handful of Hamilton Oaks buyers, including Cassandra Boone.
Borst says she discusses all aspects of loans with her customers, including first and second mortgages. Borrowers sign disclosure statements that outline all loans as well as financing, interest rates and closing fees, she says. That information also is in the purchase contract the buyer signs.
"I'm thorough in my explanations to borrowers. I don't take it lightly," she says. Borst agrees with experts who say most home buyers don't fully understand the process. "But I know my clients are told, numerous times."
"Lenders follow fair credit practices," Borst says, "and borrowers are qualified at the best available pricing based on their credit history."
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• CONSUMER PROTECTION LAWYER: Andrea Bebber of Charlotte who works with people facing foreclosure. She filed bankruptcy for four Hamilton Oaks homeowners.
Bebber sees a pattern in starter-home subdivisions like Hamilton Oaks: First-time buyers sign up for big loans with little down payment. They strain to pay their mortgages. If they have adjustable loans, their payments rise. Then a financial setback hits. Lenders add late fees and other penalties. Houses foreclose. Property values drop.
"Let me protect my clients from any mistaken impression that their foreclosures or bankruptcies indicate that they are at fault or that they are somehow irresponsible," says Bebber. "These hard-working families bought their homes believing that they would increase in value. Instead, the values have plummeted -- not because of anything my clients did or did not do."
If You Fall Behind on Payments
Contact the company that services your loan. Foreclosures cost them money. The company may be willing to adjust payment schedules to help you. You can also contact a third-party counseling agency, which may be able to work with the company on your behalf. In Charlotte, United Family Services offers counseling at (704) 332-9034. Outside Charlotte, find a local agency by calling the Department of Housing and Urban Development at (800) 569- 4287. Or contact a national nonprofit, the Home Ownership Preservation Foundation, at (888) 995-HOPE (888-995-4673).
