Due to the large number of home mortgage modification programs which have been designed and implemented to help distressed borrowers, the number of Dallas government foreclosures slowed down in 2009. However, foreclosure filings are still high – reaching a record of over 60,000 in North Texas last year. The Mortgage Bankers Association reported that 31 percent of home mortgage holders in Dallas are what they call “non-prime” borrowers, in comparison to 22 percent of these loans all across the country. Higher than one in ten Texas home owners with loans is lagging in their payments. According to the industry trade group, by the end of 2009, slightly over ten percent of Texas home mortgage holders had skipped at least one payment.
However, the Mortgage Bankers Association reported that the number of homes that fell into foreclosure in the state continued to fall slightly in the last quarter of 2009. That’s up a percentage point from last year. Texas’ mortgage delinquency rate is now just a little lower than the 10.44 percent national average.
Analysts are more optimistic about the market because there was a slight drop in the national mortgage delinquency towards the end of last year when adjusted for seasonal factors. According to the Mortgage Bankers Association, we are most likely entering the end of the onslaught of foreclosures and mortgage delinquencies that began with subprime defaults at the beginning of 2007. The constant and substantial decrease in the thirty-day delinquency rate is a tangible indication that the end of the crisis may just be around the corner.
On a national ranking of states with the highest percentage of late home loans, Texas ranks 18th although it is far below the remainder of the country in regards to foreclosures. By the closing of last year, two percent of Texas properties were in foreclosure, which is still below fifty percent of the national average.
Nevertheless, the average price of houses and commercial properties in foreclosure that can be found on foreclosure sites such as www.foreclosuredatabank.com are still far below the normal market price, making it an excellent opportunity for first time home buyers or real estate investors.
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Written by Alex Rolim.
