Friday, April 14, 2006

'Credit Woes' Push North Texans Into Default

Two updates on foreclosures in Texas. "Some North Texans are having a tough time hanging on to their houses. The number of residential properties facing foreclosure next month is up about 15 percent from a year earlier. Almost 3,000 Dallas-Fort Worth area homes are scheduled for foreclosure sale in May."

"Through the first five months, 15,336 foreclosure postings have been recorded for the area. That's an 11 percent increase from the same period of 2005. The biggest jump in May postings was in Denton County, up 28 percent. Dallas County saw a 17 percent rise in foreclosures."

"Analysts with a foreclosure consultant attribute the recent increases to consumer credit problems, not a downturn in the overall economy."

"The number of homes going to foreclosure in Tarrant County went back up from last month’s dip. Mike Fratantoni, senior economist at the Mortgage Bankers Association, said he also expects more foreclosures. He said the wave of mortgages and refinancings in 2002 and 2003 is now entering the prime default years, three to five years from the date of the mortgage. 'We haven’t hit that peak yet,' he said."

"There have been 4,715 foreclosure postings in Tarrant County in the year’s first five auctions, according to Foreclosure Listing Service. That is a 6 percent increase from the 4,447 homes posted during the first five months of 2005."

3 Comments:

At 8:01 AM, Blogger Ben Jones said...

The D/FW press was pointing out these are record highs for foreclosures in the metroplex until a couple of months ago. Now they just say its up.

 
At 11:09 AM, Blogger horselover75 said...

How do today's foreclosures compare to rates in the mid-'80's, during the "oil bust?"

 
At 1:36 PM, Blogger Ben Jones said...

For straight numbers, the foreclosures are already there. But it's a larger pie now, so there is room for it to get even worse. This is remarkable, because the economy was much more damaged in the 80's. But the Dallas area is overbuilt, and the builders won't stop until someone pulls the financing.

 

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