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Actual Home Foreclosures in Fort Worth Fell As Filings Rose

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By : John Cutts    99 or more times read
Filings for home foreclosures in Fort Worth surged in 2009, but actual foreclosures declined, based on data from research firms.

In the Fort Worth-Dallas metro area, more than 35,500 households were hit with foreclosure and delinquency notices in 2009, representing 1.5 percent of all residential units in the area.

Despite the relatively high number of foreclosure postings, the foreclosure situation in Fort Worth area is still more manageable than the situation in 93 other metro areas in the country.

According to mortgage analysts, the toxic mortgage problems and overpriced housing problems that caused record numbers of real estate foreclosure properties in other metro areas did not occur to a significant extent in Fort Worth and in other parts of Texas. Tighter state mortgage regulations and market experiences during the savings and loan crisis in the 1980s and 1990s in Texas have made consumers and lenders more cautious.

Last year, the rate of Texas home foreclosures surged by over 4 percent from 2008 with a total of 100,045 homeowners notified of their delinquency and foreclosure status. The number was equivalent to 1.1 percent of all homeowners in the state and ranked Texas 29th in foreclosure activity compared to other states.

Based on a report released by another research firm, the number of actual home foreclosures in Fort Worth declined in 2009 by 12 percent because more lenders finally complied with the federal Home Affordable Modification Program. They filed the foreclosure cases but they did not pursue them as they gave time for troubled borrowers to work out repayment schemes.

In addition to the fact that the release of a huge number of foreclosure properties into the market pushes down real estate prices further, many lenders also realized the costs of maintaining foreclosed properties.

The decision of lenders to delay foreclosure was the main reason actual foreclosures declined while foreclosure postings increased.

Todd Mark, a top executive of the Consumer Credit Counseling Service of Greater Dallas, said that more lenders are now allowing distressed borrowers to remain in their houses to give them more time to weigh their home ownership options and at the same time to ensure the maintenance of the properties.

According to local analysts, home foreclosures in Fort Worth did not put a heavy pressure on home prices. The average home price hovered around $132,042 over the past month.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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