Although Texas is in the verge of being swamped with foreclosures, they still have a sufficiently healthy housing market without overly declining home values. Despite the 27 percent increase from the previous year, experts have remained calm since they are still behind the extreme markets in California, Florida and Nevada.
Foreclosure Listing Service Inc. in Addison has recorded up to 9,008 foreclosures for this year already. A huge 32.7 percent coming from Travis County followed by Williamson with 30 percent and Hays and Bastrop with 9.2 and 4.5 percent, respectively.
According to a real estate expert, some evidence may be cited that could project a peak in foreclosures in the coming years. Lenders have recently been agreeable to modifying loans which may give homeowners a relief from the pressures of having to lose their homes. He says government bailouts on several financial institutions may have caused some sort of impact on the lenders on this matter. Recovery from this peak may take some time, especially since foreclosure homes are a long process causing a lag in the economy.
Other factors that may have contributed to the uphill of Texas foreclosures this year is the relatively weak economy during the first three quarters. Add the increasing price of the gasoline to that and you have people with miscellaneous financial liabilities other than their home mortgages.
However, this crisis Texas is faced with may still be considerable as compared to other states. Thanks to the strong market, even home prices do not have to drop at extremes unlike in other places. Also, there is a relatively lower subprime mortgage levels.
In other states, homeowners owe more for their properties than how much they actually sell their home for in the market reaching almost 50 percent. In Texas, only about 20 percent are faced with this situation.
Despite the hike in the number of foreclosures in Texas, still a higher number of mortgages are covered by owners on time. Also the very minimal – almost close to none; depreciation of home prices maintains the healthy housing market.
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Written by Alex Rolim.
