The number of homes facing foreclosure in the Dallas-Fort Worth area has jumped by more than 30 percent.
The big rise in the number of homes scheduled for foreclosure in February follows a moderation in postings in recently months.
More than 5,300 homes in the four-county area are set to be sold at next month's foreclosure auctions, Addison-based Foreclosure Listing Service said Thursday. That's a 31 percent hike in foreclosures from the same month of 2007.
The biggest increase was in Denton County, where postings were up 50 percent.
Dallas County had the smallest increase - 22 percent.
February's foreclosure total for D-FW was the highest on record for the month.
And Dallas, Collin and Denton counties all set records for the largest number of postings in any month, according to Foreclosure Listing Service.
One reason for the substantial increase in February postings may be that the January auction fell on New Year's Day, Foreclosure Listing Service analysts said.
By law, lenders in Texas are only allowed to take properties through foreclosure on the first Tuesday of each month.
Between 50 percent and 60 percent of the monthly foreclosure postings result in an actual forced sale of the property. In some cases the sales are delayed, or the borrower reaches a new agreement regarding the debt.
Almost 43,000 Dallas-Fort Worth area homes were posted for foreclosure in 2007 - an increase of 10 percent for the year.
Home foreclosures in the D-FW area have grown by one of the biggest amounts in the county in recent years due in large part to lax lending standards, analysts say. Many homeowners who took adjustable rate loans a year or two ago can't afford the monthly payments when the interest rates rise.
And despite lots of publicity, government and mortgage industry mortgage relief plans have so far not had much impact in the market.
Courtesy of Dallas Morning News
3 months ago