Foreclosures remain low in East Texas

As bad as last year was for U.S. and world economies, Kilgore and Gregg County made it through 2008 relatively unscathed as far as home foreclosures go.

Connie Wade, county district clerk, said the county actually had more home foreclosures at the end of 2007 than it did in 2008.

"In September and December of 2007 we had 40 foreclosures each, and those are the highest numbers we've ever had by the month," Wade said. "In 2008, from September through December, we averaged 31 foreclosures."

She said the small number of foreclosures speaks well if the economic times and stability the area has enjoyed despite the daily dismal national headlines.

"I think bankers are more conservative here. They know they're dealing with local money and they are conservative in how they spend it and loan it," Wade said. "It's their community's money. Small community banks are doing better than big, big banks because their boards are made up of local people and they care about their communities."

That's a sentiment echoed by Larry Haire, president of Kilgore National Bank.

KNB has only dealt with one forecloure in recent months and that was a home the builder said he couldn't complete because of personal problems, not economics. Haire said the bank quickly took back the property, hired another contractor to complete the job and its sale is pending.

"I think the bankers in East Texas are conservative but not too conservative," Haire said. "They didn't get caught up in all the greed mortgage underwriting that took place and caused all the problems in our economy and the stock market."

Haire said he believes Kilgore won't go unscathed in the current recession, but he's upbeat about the future here.

"We're going to have some aches and pains from this economy, but so far the banking community here, and really the whole southwest region, is pretty solid. Most community banks are not having the problems the big banks are having."

He also points out that the end of the year, every year, is generally a slow time for home construction.

"We generally see a seasonal slowdown in the construction market throughout the holidays. It starts late October or November and usually lasts through mid-January or early February," Haire said.

Though he laughs and said he's often "accused of being optimistic," Haire said he believes most East Texans are taking a positive approach regarding the economy and they are going to stay positive as the government works to solve the present crisis.