According to Mortgage Bankers Association, Dallas foreclosures went up to over sixty one thousand units last year. In Fort Worth area, the same case applied in 2009. Compared to 2008, the number of foreclosure filings overall increased by twenty three percent in this Texas area. In reference to this expert’s report, fixed rate mortgage defaults increased to a certain extent.
The major cause of escalating numbers of foreclosed homes last year was defaults in both fixed rate mortgage loans and sub prime loans. Dallas residents had applied for these types of loans during stable credit circumstances. Even so, Dallas is still ranked among the states that continue to record low defaults on mortgages. Throughout last year, both individuals and commercial establishments felt the bad effects of economic recession.
This obviously changed Dallas homebuyers’ income status. Furthermore the rate of unemployment escalated in most states in the country last year. The MBA found increasing unemployment rate to be the main cause of the immense defaults and foreclosures between July and September 2009. Dallas was seriously hit by unemployment not to mention the high number of people who were dismissed from their jobs.
Specifically, the number of jobless people in Dallas rose by eight point three percent. No wonder the Fort Worth area recorded a high delinquency rate in fall 2009 than similar period during 2008. Texas MBA Vice President, Scott Norman had speculated a reduction in joblessness in 2010 last year. So far unemployment rate in Dallas, Texas is still growing. Only time will tell if the area will continue recording high foreclosure filings throughout 2010 or not.
If the employment situation changes positively, residents will hopefully prevent further defaults. Even though joblessness, fixed rate mortgage loans and sub prime loans caused increased foreclosure listings last year, let’s hope 2010 will brings different results.
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