Article Courtesy of Palm Beach Post

By PAUL QUINLAN

Published May 29, 2009

WELLINGTON — Few places exemplify the foreclosure crisis like Shakerwood, a neighborhood of two-story town homes nestled off Forest Hill Boulevard.

In fact, it's one of the hardest-hit neighborhoods in the hardest-hit municipality in Palm Beach County, where the real-estate market fell with a thud heard nationwide.

Town homes in Shakerwood that sold in the $70,000s brand new in the early 1980s today list for $80,000 to $90,000. But in the past three years, prices there rode the real-estate roller coaster above $200,000 - with at least one unit selling for $230,000.

Today, about two-thirds of Shakerwood is in foreclosure, according to Scott Kline, who tracks foreclosures for the village of Wellington. He said homeowners' association fees have become such a burden to struggling owners that property managers fear the next bill could drive the neighborhood's foreclosure rate as high as 75 percent.

"They've had a rough go at it," Kline said. "People are just walking away from their units."

It's not an unusual story in Wellington, which as of this month had 1,040 homes under or headed to foreclosure. That figure is climbing by about 100 per month, Kline said.

"I don't see it stopping anytime soon," he said.

So heavy is the bleeding that the village has begun offering free monthly foreclosure seminars at its community center. Drivers along the village's main thoroughfare will see a placard advertising the seminars: "FORECLOSURE 1 ON 1 ASSISTANCE OPEN TO THE PUBLIC."

The village has held three of its "Foreclosure 911" symposiums, each attracting a crowd of about 100 to hear speakers from the real-estate and lending industries.

The village has taken other action, as well, setting aside $1 million to open a Community Reinvestment Office on June 1 that will house additional code enforcers, community police officers and staff. A volunteer citizens' group has formed to help homeowners in need.

"The easiest thing to do is to turn your back on a problem," Kline told the crowd at last week's symposium. "But we're not going to do that."

But the help has not made life any easier for residents, including Holly Jeske, a single mother who walked out of the seminar early with her 11-year-old daughter in tow.

"What they're not talking about is that there are no jobs," said Jeske, 53, who lost her position in human resources one year ago.

She said she rented a place in Boynton Beach until she began building her own in Wellington in 2001: a 2,200-square-foot, four-bedroom, three-bathroom house.

Once valued at nearly a half million dollars, the house now is appraised in the high $200,000s. She owes more than it's worth, and with no job, she has little hope of making the payments, she said. She's expecting to have a foreclosure hearing soon, and then to lose her house.

"I'm scared to death," she said.

Gustavo Ortiz, 47, was more optimistic. During a break in the symposium, he said he quit making payments on his home seven months ago on the advice of a friend, who said it would help his chances of getting his loan adjusted. He paid a man $1,500 up front to help him negotiate with his bank, although he thinks that might have been a scam.

This month, he got a foreclosure notice.

But Ortiz says the bank has since begun to deal with him and shown openness to negotiating lower payments.

"They're changing their attitude," Ortiz said.

HOA ARTICLES