Ripple effect of foreclosures can’t be ignored

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It almost comes as no surprise these days when a business is in foreclosure.

The economy is still so bad, we’ve come to expect bad news, such as massive layoffs, companies going under and foreclosure announcements. We’ve become almost numb to it all, perhaps. Maybe it’s our minds’ way of keeping us from going crazy.

Regardless of whether we’re used to hearing about foreclosures, there is a ripple effect that can reach all of us: Foreclosures mean bad things for our economy, because they result in less tax revenue, more vacant buildings, the loss of jobs, a drop in spending and, in some cases, more homelessness.

Yet you don’t really hear our elected officials in Charlotte and Mecklenburg County talking much about the foreclosure problem. I don’t, at least.

They might discuss it behind closed doors in conversations the media aren’t invited to. But when was the last time you saw one of our elected officials — say, a county commissioner or member of the City Council — talking about foreclosures in a news story?

I’d bet you could count on one hand the number of such stories you saw this year.

Maybe they think the problem is not theirs to solve or that they don’t have the means to solve it.

Still, it’s a problem for our economy.

There’s been good news lately. For example, in November, foreclosure filings fell in the county to 821 from 1,266 in October and 1,078 in November of 2009, according to the North Carolina Administrative Office of the Courts. The November 2010 figure was the lowest number of foreclosure filings recorded in one month since January.

For 2010, the county could end up with fewer foreclosures than last year. So far this year, there have been 10,872 filings, down from 11,874 by the same time last year. Overall, there were 12,767 filings in the county last year.

But even with the drop from October to November, foreclosures keep rolling in, like waves crashing on a beach.

Just last week, The Mecklenburg Times reported that Midtown Sundries in Cornelius had closed and faced a foreclosure sale set for last Friday. The Cornelius restaurant at 18665 Harborside Drive will reopen as Latitude 36, a restaurant, raw bar and grill. Restaurant officials did not return our calls for comment, so we could not find out what led to the foreclosure. But, according to news reports by other media, a co-owner in the business said the economy was a factor. Other Charlotte-area Midtown Sundries locations remain open.

Still, the closing of the Cornelius restaurant means a loss in tax revenue and, perhaps, jobs.

Also last week, The Mecklenburg Times broke the news that a major residential project in Charlotte, The Garrison at Graham, is in foreclosure.

The $22 million condominium development at 715 N. Graham St. owes CommunityOne Bank principal and interest of $11.1 million, according to public records. According to a Dec. 6 letter from the bank’s attorney to developer Thomas Barnes, he had defaulted on the note and had five days to pay the outstanding balance.

The foreclosure sale for The Garrison is set for next month.

Barnes declined to comment to The Mecklenburg Times.

Perhaps the economy was to blame for The Garrison’s foreclosure.

For our economy’s sake I wish the property, and others in foreclosure, the best.

Editor Deon Roberts can be reached at [email protected].