ST. CHARLES, Mo. (KMOX)– What was once the fastest-growing suburb in the state with new homes going up year round is now at a standstill from the foreclosure crisis.
“The growth story in St. Charles has more or less come to a stop,” said Federal Reserve Economist Bill Emmons.
Four out of every 100 households in St. Charles County have some sort of mortgage trouble now, and 1.1 percent are in foreclosure , according to a study released by the Federal Reserve of St. Louis. Nationally, 4 percent of all mortgages are in foreclosure.
While St. Charles County remains better off than many parts of the region, Emmons says its mortgage stresses are “ten times” what they were before the recession hit.
“The spreading of this problem into St. Charles county has really narrowed the gap between St. Charles County and the rest of the community,” Emmons said.
Unlike some parts of the country, suffering foreclosures from sub-prime mortgage, Emmons says St. Charles has seen what’s being called a “third wave” of foreclosures caused by job losses.
When asked when the foreclosure problem will lift in St. Charles County, Emmons says it will take “years.”
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