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Dallas Foreclosed Homes Still High despite Slowdown

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By : John Cutts    99 or more times read
Dallas foreclosed homes are still high in number despite a decrease in foreclosure actions, according to a firm studying defaults and foreclosures in Texas.

According to the research company, a total of 33,503 foreclosure actions were posted in the 4-county Dallas metro area this year, excluding repostings. The total marked a 4-percent drop compared to total foreclosure postings in 2008. In Dallas County alone, net foreclosure postings dropped by 12 percent this year.

In other reports, total foreclosure postings in the Dallas area increased, but analysts contended that the increase was due to foreclosure repostings - properties which were again posted for foreclosures by lenders as they wait for the review of loan modifications proceedings.

In the 19 Texas counties studied, repeat foreclosure postings comprised 44 percent of all residential foreclosure filings in 2009. Repostings also climbed up by a staggering 88 percent this year. In the Dallas area, repeat foreclosure postings accounted for over 44 percent of total filings this year.

According to analysts, the increase in repeat foreclosure postings this year arose from the rising number of distressed homeowners working out loan modifications to rescue their homes from listings of Dallas foreclosed homes.

But since lenders have started their foreclosure proceedings before the loan modification applications were filed, they just kept on reposting certain properties for foreclosure as many of these were already in default by many months.

Based on their past experiences with loan modifications, lenders have doubts about the success of modifications for certain distressed mortgages. Besides, the percentage of redefaults is also high.

In Dallas, total foreclosure postings, excluding repostings, reached 14,791 this year, a drop of 12 percent from 16,801 in 2008. Dallas and Denton are the only two counties among the 19 counties studied which experienced drops in foreclosure postings for this year, with Denton posting a drop of 5 percent.

In the 19 counties studied, a total of 55,640 foreclosures were posted, an increase of four percent from the total of 53,398 postings in 2008. The highest increases occurred in Hays, where foreclosures soared by 36 percent; Parker, where foreclosures climbed up by 33 percent; and Guadalupe, where foreclosure rose by 30 percent.

The lowest increases occurred in Comal, Tarrant, McLennan and Rockwall, where foreclosures increased by 3 percent or less.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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