Inflated Appraisals Add to PA Foreclosures.

A recent study found a surge of foreclosures in an area located about 100 miles west of New York City, where 6,100 households, or about one of every five in the county, have started foreclosure procedures.

Throughout the 1990s many of the homeowners who ended up in foreclosure reportedly borrowed on property priced beyond market value.

Moreover, foreclosures were frequently on loans originated by subprime lenders and typically the timeframe from loan origination to foreclosure filing procedures was less than three years.

The Monroe County Task Force, created by the Philadelphia Department of Banking and Monroe County to investigate the problem, commissioned the study, which was conducted by The Reinvestment Fund.

"The Task Force decided to take swift action," said secretary of banking, Bill Schenck, upon the release of the report. "We will offer immediate help to Monroe County families facing foreclosure."

For example, findings show that from 2000 to 2003, 2,745 families were faced with foreclosure filings and an estimated 42% were forced to leave their homes. Since 2000, the number of foreclosures increased by 34%. Since 1995, it has increased 242%.

The study found that "the growth in foreclosure is real, outpaces housing unit growth in the county and is disproportionate to other counties in the commonwealth."