Foreclosures Rise in Texas

Compared to the position one year ago 30% more houses are scheduled to go in for foreclosure auctions. A record number are waiting to enter the foreclosure zone in the New Year. North Texas bank foreclosures will see a rise in listings by 4%. Lenders have initiated foreclosure proceedings against 3,672 units for the next month. This is a record for the month of January – 30% more than what it was in January 2007. The curve keeps rising without any respite. The Chief Executive of Foreclosure Listing Service George Roddy is anything but optimistic about the ‘unhealthy’ trend.

About 50% to 60% of the monthly foreclosure postings are in actual forced sale. In some instances the sales are delayed or the borrower and lender reach a new understanding.

Denton County saw the biggest increase by going up 17%. It was closely followed by 15% rise in Tarrant County. In Dallas the picture remained unaltered from that of previous year. The Collin County foreclosure listings fell by 13%. The proportion in North Texas is currently one foreclosure per 580 properties.

Predictions are that during the forthcoming year 2 million Americans will face foreclosures. Half of these will be emanating from the sub-prime ARM’s. Washington has unveiled rescue plans but how much it will help how many people remains in doubt.

Hand in hand with mortgage woes are rise in fuel prices, taxes and credit card blues.

There is no one reason for the damp picture but the main cause seems to be the predatory lending of sub-prime floating loans or ARM’s. Those failing to qualify for the prime loans eagerly swallowed these loans that offered teaser rates with practically no down payment. But that was only for a specified period. As soon as this time expired the interest rates spiraled and the borrowers found themselves unable to continue. The lender had to initiate foreclosure proceedings against them. Millions of houses were felled by it but the number was so huge that lenders too began to fall. Thousands of abandoned houses spelt disaster for the community and brought down prices of those houses not in foreclosure. Entire neighbourhoods turned eerie. Politicians began to bestir themselves. Thrones began to tremble. The solutions being offered are random strokes that may or may not hit. Meanwhile the nation heaves and sighs. It is a viscous circle stretching far beyond the eye of the storm – the foreclosure.

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