Are Foreclosures Easing?

For a second month in a row, foreclosure postings in the DFW area have dipped compared with a year ago. Foreclosure filings for October are down 2 percent from a year ago, following a 9% drop in September.

But... year to date, foreclosures are still up 10 percent. So far in 2007, 34,635 residential foreclosures have been posted for sale and there are over 3,000 homes pending foreclosure for the October sale.

The current mortgage situation isn't helping either. If the foreclosure market was beginning to stable, after last months circumstances, the foreclosures are sure to increase again. Outside of the media circus surrounding the financial markets, it's unknown how serious the impact of will be.

At midyear, about 19 percent of Texans with subprime adjustable mortgages were late with their monthly payments. Payments for these loans typically stay low for the first two or three years that the borrower is in a house. But then they rise significantly and can put the loan in default.

With recent tighter underwriting in the home loan market, many of these borrowers no longer qualify to get a lower-cost fixed-rate loan. An August survey found that 64 percent of subprime borrowers who sought to refinance could not.

Housing economists are betting that the nationwide foreclosure surge will last at least another year or two.

"There are a lot of good people who are going to lose their homes," said Amy Crews Cutts, an economist with mortgage company Freddie Mac who spoke in Dallas earlier this week.

If you are facing foreclosure, call us to see how we can help. We are experienced with the pre-foreclosure and short sale market and can help you avoid foreclosure.

Visit www.dfwshort-sale.com or call Leigh at 972-662-9200.

posted by Leigh Bates