The delinquency rate of Texas went down last quarter, giving hope that the number of foreclosed properties and bank owned homes will diminish during the year. Delinquency rate in the region went below the 10% mark in the fourth quarter of last year compared with year-ago levels.
Foreclosed homes in Richardson and in the rest of Texas remained a major concern for the area's housing industry. However, the future seemed to be brighter as fewer borrowers failed to meet their monthly loan obligations during October-December 2010. Data for the 2010 fourth quarter showed that 9.22% of homeowners with mortgages in the region were at least 30 days behind in their payments.
The percentage was an improvement from the 10.3% posted in the October-December 2009 period. According to analysts, this means that fewer borrowers are in danger of losing their properties to foreclosed homes in Texas. They also stated that the decline was significant, given that fourth quarter is the time when delinquency rates usually escalate. Some local analysts even went so far as to say that the figure shows that the Texas housing market has already hit bottom.
Although some may not agree, it is still a good sign for the rest of 2011 as foreclosed and bank owned homes are more likely to post lower numbers with fewer delinquent homeowners. In terms of borrowers who were at least 90 days behind in loan payments, there were 3% of them in the state for the fourth quarter of last year.
Meanwhile, nationwide figures also showed improvements as analysts hope for a decrease in the number of foreclosure homes for the rest of 2011. In the whole country, delinquency rate covering all criteria declined to its lowest percentage since the last quarter of 2008. In terms of borrowers who were only one month late in paying their dues, the total also reached a level not seen since the 2007 fourth quarter.
Although foreclosures and bank owned homes are expected to rise again this year, the drop in delinquency rate has given rise to a more positive thinking in the U.S. housing industry. Most analysts believe that by 2012, the market will be on its way towards a full recovery.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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