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Foreclosure rates likely to stay high [TEXAS]
STAR-TELEGRAM ^ | Dec. 28, 2006 | ANDREA JARES

Posted on 12/28/2006 8:46:51 PM PST by Dubya

Foreclosures in 2006 reached levels not seen since the real-estate crash of the late 1980s, and it doesn’t look like they’re coming down anytime soon.

“There is no reason for the foreclosures to actually drop significantly,” said George Roddy, president of Foreclosure Listing Service, which tracks foreclosure postings.

About 1,000 properties in Tarrant County were scheduled for auction every month this year, with about 40 percent to 50 percent of them actually sold on the courthouse steps, according to Roddy’s company. Many avoided foreclosure by selling their houses beforehand, reaching agreements with their lenders or filing for bankruptcy protection.

Roddy and others say the fundamentals that drove up the foreclosure rate are still in place. The list of culprits is long: job losses, divorce and medical bills always push up the numbers, and higher energy costs hit hard this year, experts say. Also, many homeowners found themselves in financial trouble when the initial low payment on an interest-only or adjustable-rate mortgage went up significantly as interest rates rose.

Dozens of new loans were created in recent years to make home buying more affordable, and many have proved to be risky.

“There was truly one [mortgage] for every occasion, like Hallmark cards,” said Catherine Williams, vice president of financial literacy for Money Management International, a nonprofit credit-counseling service. “They are all coming home to roost now.”

It was a surprise when 1,064 homes were posted for foreclosure at the December 2005 auction, because it was the first time that year that the monthly total reached 1,000. In 2006, foreclosures topped 1,000 five times.

The 1,000-home mark may be hit even more often next year.

“We don’t think foreclosures will increase at the rate they increased this year,” said Rick Sharga, spokesman for RealtyTrac, a California-based company that watches foreclosures. But they will rise, he said.

The cost of living is still going up, with higher interest rates and energy costs, Williams said. And employers are increasingly shifting healthcare costs to employees.

It’s unclear how the rising level of foreclosures is affecting the overall real-estate market. The North Texas Real Estate Information System reports that sales and median-price figures — half the homes sold for more, half for less — have dropped for three straight months. Sales declined in nine of the past 12 months.

Frank Nothaft, vice president and chief economist for Freddie Mac, sees a better economic picture in Texas than in other parts of the country. Texas job growthis above the national average. So are housing sales.

But it can take several months for economic news to show up in foreclosure figures, Nothaft said.

“I don’t think it’s going to get significantly worse, especially if you have good job growth,” Nothaft said.

Roddy said a quick drop in foreclosures was not likely.

“The question is ‘How long can this last?’ ” Roddy said. “It could conceivably last another year or two.” Andrea Jares, 817-548-5522 ajares@star-telegram.com


TOPICS: News/Current Events
KEYWORDS: brokenrecord; bubble; gloomanddoom; headinsand; housing

1 posted on 12/28/2006 8:46:53 PM PST by Dubya
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To: Dubya

bubble? what bubble?


2 posted on 12/28/2006 8:47:30 PM PST by flashbunny (If the founding fathers were alive today, they'd be buying feathers and boiling tar.)
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To: flashbunny

It's just your imagination.

LOL!!!


3 posted on 12/28/2006 8:48:34 PM PST by nmh (Intelligent people recognize Intelligent Design (God) .)
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To: nmh

The DFW area took a breath-taking nose dive beginning with the telecom/technology decline of 2000, and followed by the economic sag after 9/11/1. The area didn't experience much of the economic recovery seen by the rest of the country in recent years, but it did take another bath with even greater declines in property values over the last couple of years.

In short, they took a double whammy. And it looks like more damage is on the way. Glad I took my lumps and sold my house there a while back!


4 posted on 12/28/2006 8:55:44 PM PST by pjr12345
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To: flashbunny

This is one county, and not indicitave of a bubble.


5 posted on 12/28/2006 8:56:50 PM PST by Fierce Allegiance (Merry Christmas! SAY NO TO RUDY!)
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To: flashbunny

This is one county, and not indicitave of a bubble.


6 posted on 12/28/2006 8:56:52 PM PST by Fierce Allegiance (Merry Christmas! SAY NO TO RUDY!)
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To: Dubya
Foreclosures Likely to Rise

Foreclosures of subprime mortgages are expected to rise dramatically in the coming months, with nearly one in five subprime borrowers at risk, according to a consumer advocacy group.

The North Carolina-based Center for Responsible Lending said that about 2.2 million subprime home loans made in recent years already have failed or will end in foreclosure - a situation that "will cost homeowners as much as $164 billion."

The study said that more than 19 percent, or nearly one in five subprime mortgages originated in the past two years, will end in foreclosure. ... Want to learn more? Educate Yourself

"Nothing to see here. Time to move on."
7 posted on 12/28/2006 8:56:52 PM PST by ex-Texan (Matthew 7: 1 - 6)
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To: ex-Texan; Toddsterpatriot; Petronski

For what area does that cover. Is it nationwide?

You and statistics tend to lie, so I'd like real data.


8 posted on 12/28/2006 8:58:29 PM PST by Fierce Allegiance (Merry Christmas! SAY NO TO RUDY!)
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To: Fierce Allegiance
WI - Mortgage foreclosure lawsuits up by a third in the five-county area
9 posted on 12/28/2006 9:04:05 PM PST by flashbunny (If the founding fathers were alive today, they'd be buying feathers and boiling tar.)
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To: flashbunny
This one:


10 posted on 12/28/2006 9:07:04 PM PST by billybudd
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To: flashbunny

That will be good for bargain hunters.

I'm still waiting for these bargains in my town, not happening!


11 posted on 12/28/2006 9:07:06 PM PST by Fierce Allegiance (Merry Christmas! SAY NO TO RUDY!)
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To: Dubya
Wow, more idiots speaking 'bout stuff they don't understand... like a democrat convention, except democraps actually understand about the retardation they speak.
12 posted on 12/28/2006 9:08:53 PM PST by Porterville (Destroy the Death Culture of Socialism)
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To: ex-Texan

I have no idea why you want to sink real estate. But you don't even have a lick of sense.

Forclosures offer a wealth of opportunities for investors to buy property cheap. They can fix them up, rent them out or sell them. This is the market in action.

There will never be enough houses.


13 posted on 12/28/2006 9:14:48 PM PST by TheLion (How about "Comprehensive Immigration Enforcement," for a change)
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To: Fierce Allegiance

One of the reasons that this is "no bubble" is that long term interest rates have remained low. The "bubble" is probably going to burst in the heads of the idiots that think we are in one.


14 posted on 12/28/2006 9:18:25 PM PST by TheLion (How about "Comprehensive Immigration Enforcement," for a change)
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To: ex-Texan
considering subprime loans are about 14% of all loans...what does this mean ?

THE SKY IS FALLING !
15 posted on 12/28/2006 9:27:49 PM PST by stylin19a ("Klaatu Barada Nikto")
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To: Fierce Allegiance

In this case, his statistics come from a lefty think-tank funded by the usual suspects, like the Ford and MacArthur Foundations.


16 posted on 12/28/2006 9:46:02 PM PST by Petronski (I just love that woman.)
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To: ex-Texan

OMG, you are insane. You actually linked to a website (I suspect yours) that has headlines about UFO's being real....


Your frickin' nutz man; Of course you know nothing about real estate.


17 posted on 12/28/2006 9:46:41 PM PST by Porterville (Destroy the Death Culture of Socialism)
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To: TheLion
There will never be enough houses.

In Baltimore, Detroit, Dayton, and Cleveland, there are too many houses. There are thousands of abandonned buildings, basically worth zero or less than zero (yes less than zero, it takes more money to fix or tear down and rebuild and what you build has less value than what you put in).

18 posted on 12/28/2006 10:54:03 PM PST by staytrue
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To: Petronski

Great to sse you posting again! Someone said you were banned, but I knew otherwise.

Merry Christmas & happy new year to you and yours!


19 posted on 12/29/2006 12:35:30 AM PST by Fierce Allegiance (Merry Christmas! SAY NO TO RUDY!)
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To: Fierce Allegiance

I'm here and there. Merry X-mas.


20 posted on 12/29/2006 12:36:22 AM PST by Petronski (I just love that woman.)
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To: TheLion

Real estate is local. There is no such thing as a national market.

Financing of real estate is another story. The problem lies with those who have gotten themselves in over their heads. Particularly those who have interest-only loans, or ARMs, AND who are at the very edge of their budgets. These folks are always one lay-off, rate increase, or injury away from financial devastation.

Interestingly enough, the areas with the highest concentration of loans of the types aforementioned are the same areas where housing values have risen to unsustainable levels at a very rapid pace. When the bottom drops out in these markets (and I mean the bottom-end loans mentioned), the impact will certainly percolate upward to affect the valuations of the saner home mortgage holders.

In the end, conventional wisdom tells us that if DINK couples (double income, no kids) pulling down nearly $200K a year have trouble buying decent housing, that market is due for a correction. It appears to be happening in such areas.


21 posted on 12/29/2006 9:15:07 PM PST by pjr12345
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