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Foreclosures in Fort Worth Up in Housing, Commercial Sectors

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By : John Cutts    99 or more times read
Foreclosures in Fort Worth surged in both the residential and commercial sectors in January this year, based on reports from commercial property consultant Trepp Group and other real estate firms.

The rate of foreclosure homes in the Fort Worth-Arlington metro area surged to 1.4 percent in January, a jump of 0.47 percent from the January 2009 rate of 0.94 percent.

The rate of mortgage default rate also increased in January. About 6.3 percent of all home loans in the metro area were in default by more than three months, up from 4.2 percent in January last year. The increase in rate year-over-year was 2.1 percent.

In contrast, the rate of Texas foreclosures in January this year decreased by 11.5 percent from December 2009, with one foreclosure posting for every 785 households in the state. A total of 12,225 homes were put into default or foreclosure status, including 6,036 units already in the real estate owned listings of banks.

The January filings were still higher, however, by more than 25 percent from total foreclosure filings in January 2009.

Despite the increased default pace, foreclosures in Fort Worth remain much lower than the nationwide foreclosure rate of 3.19 percent.

In the commercial sector, the number of financially struggling commercial real estate properties in the Dallas-Fort Worth metro area continued to rise in the first two months of this year.

According to Trepp LLC, over 9 percent of all mortgaged commercial properties in the area were in default as of February 28, much higher than the nationwide commercial default rate of 6.72 percent.

Trepp vice president Paul Mancuso said, however, that although the commercial default rate increased, the situation in the Dallas-Fort Worth region is not as bad as in Nevada, Arizona, Michigan and Florida where the commercial delinquency rates have soared to double-digits.

The Trepp report showed that nearly 160 commercial properties in the area were distressed as of February 28 and that most were hotels and office buildings. Nearly 17 percent of hotel loans were in default as of February 28 and more than 12 percent of office development loans were delinquent.

In 2009, commercial real estate foreclosures soared by almost 27 percent from the previous year.

Residential Foreclosures in Fort Worth, however, are being handled by the market, relative to how other markets have been faring. Analysts said that home prices throughout Texas did not shoot up as high as in other cities during the boom.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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