Properties in listings of residential foreclosures that are scheduled for auction in February 2011 have increased in Austin, Texas, when compared with the same month of 2010. According to local housing market data, foreclosure postings jumped by 14% in February compared with year-ago levels.
Houses under Austin foreclosure lists posted for the February auction totaled 1,376. The figure represents postings from the counties of Bastrop, Travis, Hays and Williamson. According to realtors, majority of the postings were for single family dwellings. In addition, a big percentage of the properties are owned by people who owe more on the loan than the properties' appraised values on tax rolls. Analysts also reported that such loans, sometimes called upside down mortgages, have been surging in the area since July of last year and have maintained a level of over 20% of total area loans.
Housing reports showed that properties under foreclosure lists in Texas are comprised of a big percentage of upside down loans. In Austin, 22% of foreclosed home postings for the month of February were accounted for by upside down mortgages at a total of 264, which is 87 more than what was recorded in the same 2010 month.
In other areas like Bexar County and Dallas, almost a third of listings of residential foreclosures are comprised of upside down mortgage loans. Reports also revealed that for both Bexar and Dallas, postings for upside down mortgages are increasing in number at a faster pace than overall foreclosures. Housing market analysts stated that for such mortgages, both the borrower and the lender are in the losing end.
According to analysts, these properties are even harder to sell than ordinary homes in foreclosed property listings. More often than not, borrowers are unable to find a seller willing to pay for a price that will cover the loans, while lenders who decide to seize such properties also find it difficult to unload them for an amount that will cover the investment.
February 2011 will mark the 25th consecutive month that upside down mortgage-related properties in listings of residential foreclosures have reached at least 1,000 in the area, analysts have reported. They added that unless the job market improves, the problem will persist.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
Notice: In accordance with FTC guidelines, we state that RealEstateProArticles.com has financial relationships with some companies and may be compensated if consumers choose to buy, subscribe or take any action to a product or service via the links on our website. Occasionally, we receive free access to review a product or service. We do not accept compensation in exchange for a positive review. These reviews are strictly the opinions of the author.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites