A Huge Jump in Texas Foreclosures

17 February 2008

Author: admin Posted under Foreclosure homes

Bad news for all homeowners – there is a huge jump in the foreclosure rate in Texas. Most of the foreclosure filings have been reported from the Dallas-Fort Worth area where the home foreclosure filings jumped by almost 31%. This has affected Texas foreclosures as it showed the rate being twice the national average. A high number of real estate foreclosures were recorded from the Denton, Dallas and Collin counties.

There was an excess of 5,300 Texas foreclosure homes by the second quarter of 2007 with the highest rate being recorded by Denton County where foreclosure filings spiked by 50% while Dallas county saw a spike of 22%. Some of the top states apart from Dallas-Fort Worth and Denton that recorded high foreclosure rates in Texas include Austin, Laredo, Houston, Arlington, and San Antonio.

There were almost 43,000 bank foreclosures recorded in the Dallas-Fort Worth area, which is going to give Texas one prolonged heartache. Most analysts believe that this is due to the adjustable-rate loans that were issued to homeowners. The interest rates have become higher and the monthly mortgage payment has become difficult to pay within a year of taking the loans.

There is a second reason, which is that most homeowners are unaware of the fact that they can stop foreclosures by simply informing their lenders regarding their financial status. If any homeowner is incapacitated or has lost his/her job then they will be in a financially difficult position. In such times informing the lender can save them from the impending doom of Texas foreclosures.

There is always a pre-foreclosure period before the homes are advertised in foreclosure listings. This is the time when homeowners can actually work out a payment plan with their lenders to avoid the foreclosure. If this works out in 2008 then we will see far less Texas foreclosure homes and happy homeowners.