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Foreclosed Homes Filings Up in Texas

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By : John Cutts    99 or more times read
For the first half of this year, the Dallas-Fort Worth area in Texas showed a significant decline in the actual number of foreclosures sold.

But industry analysts are quick to point out that the 17 percent drop in the number of foreclosed homes sold at auctions could be attributed to loan modification efforts of distressed homeowners rather than a market rebound.

From January to June, lending institutions sold over 9,200 condominiums, homes and townhouses at foreclosure auctions. The figures represented a drop of over 11,000 foreclosure houses for the same period last year in counties of Collin, Denton, Dallas, Tarrant and Rockwall.

But while the number of actual foreclosures was taking a dive, foreclosure filings were going the other way, with a rise of 14 percent. The September postings for the area increased by 35 percent compared with the previous year.

According to industry experts, the decline in actual foreclosure activity was proof that programs by the government and lenders to help distressed homeowners remain in their properties are working.

They said that lenders are posting foreclosures but not making any move to actually take back the distressed properties. Adding to this is the foreclosure moratorium initiated by government-controlled mortgage companies, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp.

For the first half of this year, about 30 percent of posted foreclosed houses were actually auctioned off by lenders. Typical monthly foreclosure filings resulted to over 40 percent of forced sale. And most lending companies keep distressed properties on foreclosure postings while negotiating with borrowers.

Meanwhile, industry analysts said that it is still too early to tell if the loan modification program will result in less foreclosure properties over time. They pointed out that many lenders are currently experiencing a backlog of loan modification requests, resulting to enormous delays in the process.

On the other hand, the city of Frisco topped the region in terms of the number of foreclosed homes for sale at auctions in the first six months of this year. For the period, Frisco's actual foreclosed homes listings reached over 200 with properties having an average mortgage value of over $289,000.

But industry experts said that while the number of foreclosed homes for sale in Frisco was high, there was also a strong demand from buyers, resulting to multiple offers and sellers becoming realistic about their home sales prices.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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