Foreclosures Breaking Own Records

In Denton County 566 (400 in November) foreclosures have been posted – creating a record by crossing the 500 mark. Denton sets the trend right across North Texas. Dr. Bernard Weinstein, Director of the Center for Economic Development, North Texas University opines that what is being seen today had its roots during 2004, 2005 and 2006. Individuals with modest income and single-adult households were made the targets of sub-prime predatory lending. This has led to the unprecedented number of foreclosures today even in a strong economic zone like North Texas.

Denton County shows a 50% increase from February 2007 when there had been 377 foreclosure listings for residential units. February was higher than January by 44%. In Dallas, Collin and Tarrant Counties the listings were 2,351, 623 and 1,775 respectively. In Tarrant the jump was 39% over February and 47% over January. Collin County was 32% higher than February and 54% more than January.

The reason cited for increase in February postings is because the January auction date was on New Year’s day that happened to be a Tuesday. According to Texan law the lenders can take over foreclosed properties only on the first Tuesday of each month. Thus the increased figures by 15% are not quite so high in reality – it being tied to the problem of delayed postings. One will have to wait for March figures to analyze the total picture. It cannot be predicted whether this trend will continue. Even during the oil crisis of 1980 the figures did not reach such heights as of today. If the same indications come through with an average of the entire year being higher – then it will be something to think and talk about.

In 2007 43,000 houses in Dallas-Fort Worth were listed for foreclosures – it meant a 10% rise for the year. In Denton County there were 3,357 foreclosure listings (residential) in 2007 showing a steady rise from 2003. The steepest jump was from 2006. It is apprehended by experts that the climb will continue for another 15 to 18 months.

One of the causes of more residential units falling into foreclosure is the rising cost of living. Everything from gas and utility items having been costing more – inclusive of credit card rates and taxes. This has made it more difficult for families to budget their finances. The overall impact has been an upswing for rental properties which are now in high demand.

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