The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-08-08
Trends
Hole Foreclosures
Gain Should Not
Cause Alarm.
by VINCENT LYONS
Times Financial Editor

A
" ing undue alarm over the an
nouncement by E. Kirk Mckinney.
Indiana manager Of the Home
owners Loan Corp. that six fore
closure suits have been fled against
property owners and that % addi-
tional actions are anticipated. This
concern Is entirely without founda-
ton and not warranted by the facts
IN the case.
Up to July 10 the Hole granted
43.774 loans on miscellaneous prop
critics throughout the state involv-
ing the sum Of s99.097,119. Even If
the actual foreclosure suits were %
the number would still be a mere
drop in the bucket as compared
with the aggregate loans arranged
by the Federal agency.
Those persons who have accepted
the proffer OF help made by the
Hole have no cause 10 feel that
the government means to eschew
its noble role Of providential pro-
wider for the more dastardly char
scter Of the Old-line stage villain
who. threatening foreclosure, al
ways compromised by marrying the
beautiful daughter Of the house.
The Roosevelt Administration has
been accused Of many things. but
It is doubtful if it would allow the
Hole to resort TO polygamy.
INDIANA is not alone in the mat
i ter Of foreclosures. John II.
Fancy, chairman of the Hole. re-
Gently pointed out that proceedings
have been taken against some 300
properties throughout the country.
This figure represents only one out
Of every 100 borrowers. How
picayune this record really is may
be realized when it is considered
that in the first five months of the
year private lending institutions
foreclosed on 10000 homes.
The primary factor to remember
in the showing IS that those per-
sons who applied for relief from
the HOLC we're reilly in distress.
in the greater number of cases
foreclosure was imminent unless
some such arrangement as the
government worked was inaugural
ed. Consequently. the amazing
thing is that the aggregate of
foreclosure suits started by the
Hole has not been greater.
Another item which looms large
in consideration IS the fact that
some Of the borrowers have allowed
the shadow of foreclosure to fall
over their homes because of either
ignorance or recalcitrance Those
addicted to ignorance labOred I'M
der the delUSion that the Hole
rescued them from their difficult
ties and that they did not have 70
do anything in return. Borrowers
falling in the other class brazenly
sought to evade their obligation
despite the fact they had the
where with-all to meet it.
XXTHEN the HOLC arrived on
w the scene its purpose was
Simple-to arrest the deflation of
real estate values induced by the
wave of foreclosures and to enable
the individuals to retain their
homes. It could not really be
called two-fold purpose as the
completion of one of its detectives
automatically brought about the
second desired condition. Every
one will agree that to this point
it has accomplished its aim.
At present the Hole has an
active interest in approximately
$4,000 homes throughout the
country. If the with alarm
believe that the foreclosure pro-
ceedings already taken are the
forerunner of a wholesale dumping
of properties on the real estate
market they are not giving HOLC
officials credit for much vision.
Such activity would merely have
the unhappy effect of depressing all
the other properties in the country
both those held by itself under
mortgage and those in private
hands.
The Hole. being in the business
il is in. must. of necessity, remain
IN existence for a number Of years
unless. at some future date. private
capital is able to work out deal
for taking over the mortgages on
the present long-term amortization
basis. With this in mind it is to
be expected that in the course Of
its life the HOLC must acquire
some properties. Foreclosures &C
cur in good times as we'll as bad.