Taxing Times For Texas As Foreclosures Pose A Challenge

Posted in Foreclosed Homes, Foreclosed Properties, Foreclosure, Foreclosure Homes, Mortgages, August 20th, 2007 |

In only three months time Round Rock, the home of the Stony Point Tigers registered 248 foreclosures. This makes it the 182nd most foreclosed in the country. In Texas it ranks 6th. Pflugerville ranks 450th in the country.

Mortgage experts of the locality pin down the cause to the usual disasters that grips the populace from time to time – divorce, death and unemployment. The situation gets aggravated with natural calamities. Unfortunately this reasoning is not holding water this time.

McCoy, President of Mission Mortgage points her experienced finger at the investors who speculated in Austin. Based on promises investors would walk in and buy up units. But reality did not live up to their dreams. These investors are now having problems tackling their mortgage payments in their home territory. So they want to get rid of units here in Austin, which is having to shoulder other people’s crosses.

Mortgage broker Bray of Lone Star Lending warns borrowers never to sit idle on default notices. Communication lines between lender and borrower must be kept open at all times. The lender doesn’t want the house but wants the money coming from it. It is to their interest to see that the borrower is doing the utmost to keep the home fires burning.

There are five clear instructions. Take the initiative and contact lender for discussion. Secondly arrange for debt counselling with the object of refinancing the deal. Thirdly if the house has equity then the monthly payments may be lowered for a short term with high interest loan to tide over the immediate crisis. Fourthly grace periods are not impossible to get. Lastly directly sell the house. This option is much better than slipping into the foreclosure coma. A foreclosure victim has rights. Know it.

There are agencies of renown that buy these loans and do whatever is feasible to help people keep the roof above their heads.

Many Americans are losing hearth and home because of defaults in the sub-prime market but that is not happening in Texas. Of 7,000 loans here not a single one is ARM. It is not saleable here in Austin, Texas. This means that the people here are not those who cannot afford the readjustment in instalments. It is good news for the market. Texas is standing out as an island in the turbulent sea all around.