Texas foreclosures down while nation up
Some leading economic analysts estimate that more than 10 percent of all homeowners in the United States have negative equity in their homes and predict that percentage will increase as prices continue to fall. The major areas affected by lower home prices are six states: California, Florida, Nevada, Arizona, Ohio and Michigan. Through the first half 2008, these states accounted for 43 percent of all foreclosures in the country according to RealtyTrac, Inc.
Nationally, the number of foreclosures continues to climb, but may begin to stabilize in the second half of 2008 and into 2009.
However, no significant decline in overall foreclosures should be expected until late 2009 or early 2010 as the number of adjustable rate mortgage (ARM) resets for both prime and subprime mortgages will not significantly abate until second quarter 2009.
Texas foreclosures have remained fairly stable, compared with a national increase of 61 percent to 1.4 million. Based on Notice of Trustee Sales and Notice of Foreclosure Sales, Texas properties posted for foreclosure during the first half of 2008 totaled 42,705, down 17.7 percent from the same period in 2007. Foreclosure postings were up 27.3 percent to 462,418 nationally.
The Mortgage Bankers Association (MBA) National Delinquency Survey data reveal that adjustable rate mortgages account for the majority of foreclosures. Prime and subprime ARM mortgages represent approximately 20 percent of all mortgages outstanding, and 60 percent of all foreclosures started during first quarter 2008.
Source: Tierra Grande, Real Estate Center at Texas A&M University
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