Now The Time Comes To Borderland – To Be Hard Hit By Foreclosures
The problem of increased foreclosure homes plaguing the U.S. nation has come to be experienced by the El Pasoans as well in Borderland. Once bitten by the recent foreclosure filings, the mortgage lending companies are shrinking their business and refuse loans to lot of people – the result is only few people can afford to buy homes now.
A Far East El Paso family expresses with grief that they are leaving their own home not by choice but by forceful circumstances of foreclosure process. The sad story of this home owner goes to show that all of a sudden there was an arrears of $8,000 and it ended up in foreclosure within no time. The family to whom the home owner rented the house lagged behind their repayment of high interest loan they got from a mortgage lending institution. The home owner regretted that the tenant rushed up things in getting a fast mortgage loan, with interest as high as 10%, rather than at a lower percentage, if at all he was patient. This was the route cause of all these subsequent problems.
Even during last year, the mortgage lending companies extended loans to many people on high interest, though they are not credit-worthy. This has eventually resulted in default of repayments and ended up in foreclosures forcing the borrowers to forego their respective homes. This year the trend is reversed and it is very difficult now to get loans. Realtors complain that mortgage lending companies are insisting upon more and more documents as pre-requisites and the situation is getting difficult.
As the number of foreclosures are increasing from last couple of years, the other side of it is only less people are able to buy homes now because of the credit squeeze. This augments the sufferings of the home owners as they are not getting the right price for their homes while selling, at times lower than what they paid for it.
A real estate agent commented that houses which used to sell for $195,000 last year are now difficult to sell for $175,000 or $180,000 – a fall in price amounting to $10,000 or $15,000.
The data collected from Real estate centers also reveals that in El Paso for the last four months the house sales have fallen deeply than that of the same period last year.
The real estate agents are feeling the pinch for the first time in 15 years that their clients have started losing their housing property due to foreclosure process.
