Editorial: Freightliner layoffs: Omen for foreclosures

Rowan County is well versed by now in how volatile the truck-manufacturing business can be, so no one can really be surprised that Freightliner has announced a layoff in June. But the scope of the layoff and its timing — 1,500 people losing their jobs amid a national foreclosure crisis and credit meltdown — sends a particular shudder through the county.

Local agencies have been swift to jump in and help workers during mass layoffs. The historic Pillowtex closing that ended more than 4,000 local jobs in 2003 was quite a training ground. But extraordinary measures may be in order to help these families keep their homes. Foreclosures are already far too numerous.

The figures on foreclosures are eye-opening. In Rowan County, the annual number of foreclosures was in the 200-300 range until 2002. Then came a big jump to 814 in 2003, the year Pillowtex closed, and the total has remained over 700 ever since. Having weathered the worst, some observers said Rowan should be better off this year and not suffer from the mortgage crisis as hard as some areas. But by the end of February, the county had recorded 156 foreclosures. If the rest of the year is like the first two months, that would lead to more than 900 foreclosures. With 1,500 more people losing jobs, that looks like a near-certainty.

Neighboring Cabarrus County has even more ominous numbers. It is barely affected by Freightliner's news, but Cabarrus has woes of its own — with job losses at Philip Morris, CTC/Windstream and so on. Foreclosures in Cabarrus surpassed 1,100 last year, perhaps as attributable to a building boom fueled by too-easy credit as to lost jobs. The figure appears headed higher this year.

County commissioners can address the problem indirectly in the long term by recruiting industry, improving education and job training and making the area as attractive as possible to new business. A more immediate, direct solution could come from Congress in the form of relief for distressed homeowners, but so far the signs are not promising. The Senate is debating such a bill, but critics say it spends more money helping the home-building industry with a $6 billion tax break. Home builders are hurting to, but saving homes from foreclosure should be a higher priority. The Salisbury Community Development Corp. won a state award last year for helping families avoid foreclosure, and it may be the best resource for Rowan's struggling homeowners again this year. Let's hope the job is not more than any local agency can handle.