Little Impact Of Rescue Schemes As Foreclosure Numbers March Ahead

April 24th, 2008 | Tags: Foreclosure House

In Dallas-Fort Worth region the foreclosure of houses have risen by 40% since the previous year belying the brouhaha and hype about rescue plans. In these four counties nearly 4,4000 units are marked for the foreclosure auction. George Roddy the president of Foreclosure Listing Service comments that all the talk about help coming from government and other sources seem to be still ‘in the pipeline’ and remain undelivered. No impact is visible as yet in a region covering a dozen counties.

43,000 units were affected in 2007 that calculates to a rise of 10% above 2006. Foreclosure in Dallas-Fort Worth is the second highest since records have been kept. The rise has been by 24% counting the first five months of the previous year. Rockwall and Denton counties have the big spikes in the number of houses ready for May sales. It is double that of the previous year. In Denton County that increase has been by 50% compared to May 2007. Both Dallas and Tarrant counties have 39% increases in foreclosure listing.

About 50% to 60% of the foreclosure listings registered each month relates to the forced sale of units. Often the sales had been postponed or sometimes the borrowers have reached some understanding with the lender regarding the debt. The majority of the house loans emanate from the sub-prime category. Its floating interest has made it impossible for many borrowers to keep pace with the rise. On the other hand falling real estate market has made refinancing a rare option. Coupled with foreclosure blues is the recent economic slump across the country. Prices of fuel and food have reached new heights. It is a battle to survive in a market where unemployment too is high.

In defense of the relief programmes initiated by the government and other bodies, consumer attorneys opine that the situation could have become far worse without the help operations. However the magnitude of the problem is undoubtedly jumbo sized. Todd Mark of Consumer Credit Counseling Service of Greater Dallas rightly says that ‘no one silver bullet’ can solve the hydra headed problems. The number of people defaulting in mortgages and seeking help are increasing by the day. Many borrowers have taken loans far above their capabilities. It is unlikely that the weather will improve in the next year or so. It is hard to believe but true that right now gas is cheaper than milk!