Texas Foreclosures Slowing Down

Posted in Foreclosures, June 11th, 2008 |

Texas is going against the tide as recent reports show that foreclosures are slowing down here. This report has been released by a California based tracking firm, RealtyTrac in April 2008.
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During March there were 10,700 foreclosure postings in Texas – a decrease of about 16% from March 2007. It is also a drop of nearly 13% from foreclosure listings of February 2008.

Across the country 234,685 units were foreclosed upon in March this year – a 57% jump over the numbers of March 2007 and a 5% increase from February 2008. As per year-by-year count foreclosures (including defaults, auction and repossessions) increased by about 129%. This indicates that a good number of defaulting borrowers are just walking away by deeding back their properties to the lenders. In comparison the auction notices have spiked by 32%. The deed-in-lieu permits the lender to take over the unit without putting up for a foreclosed auction in the court.

California and Florida continued to be the top rankers together with Ohio in March this year. California ranked first with 64,711 foreclosures – an increase of 20.66% from March 2007. The rise year-by-year counts to 106%. Florida came second with 30,254 foreclosure filings marking a jump of 112% from March 2008. But there was a drop of postings from February 2008 by about 7%. Ohio ranked third with 11,273 foreclosure listings in March showing a rise of 37% from March 2007. It was a 9% increase from February 2008.

According to the latest trend figures alone cannot give the comprehensive picture. Although interest rates have been reduced the general trend is for foreclosures to gallop ahead. This shows that the focus has shifted from the interest issue to other matters – unemployment, increase in food and fuel prices and fall in the real estate market. Even with reduced interest it makes no sense to continue with the mortgage as the value of the house is more often than not less than the loan amount. Compounded with rising prices the economic scenario has become toxic and dangerous. Many contacting the counseling centres are worried about lowering of income and increase of prices of essential. In the previous year 22% complained of lowering income. This year the number is 28%. In April people spent on an average $335 per month on groceries – an increase from $291 from April of the previous year. This year $242 is spent on gas while it was $181 in 2007. Thus a mixture of problems is adding to the foreclosure mayhem.