Austin Foreclosure Gone Up

October 21st, 2008

The foreclosure posting in November in the area of Austin has increased by 31 percent as compared to the figure last year. Apart from that, it has increased year-to-date by 26 percent. It is envisioned by the real estate experts that the number of posting is further going to go up. However, it has also been predicted that the extent will be not be as high as is the case for other regions of the country. Some of the places where foreclosures have really hit hard are Florida, Nevada, and California. A total of about 884 properties have been posted for the foreclosure auction of November 4 in Austin. In the foreclosure auction that took place in last year’s November month, nearly 673 properties were posted.

The counties that have contributed to the increase in foreclosure in the area of Austin are Williamson, Bastrop, Hays, and Travis. A total of 8,225 properties throughout the month of November have been posted as compared to 6,543 properties from January to November of 2007. It has been seen that the posting of foreclosure in the Travis County was 457. This indicates an increase of nearly 44 percent from what it was in November a year ago. There has also been a 31 percent increase in the year-to-date postings.

The rate of foreclosure although have gone up in Austin, but it is expected that the ongoing crisis is going to improve by 2009. About 4 years back, the average loans for postings in November was made. The problem loans were made through earlier part of 2007. The local and national real estate market is suffering heavily due to foreclosure. A number of factors have been responsible for this situation. The homebuyers in a bid to purchase home fast took mortgage that they are unable to afford now. According to an Austin-based property brokerage, Robert Grunnah, the rate of foreclosure is likely to increase in Central Texas by the next 1 year. The foreclosure activity is highly visible in suburban areas like Manor, Buda, Kyle, and Elgin.

In these areas, the homes were sold out to people who cannot afford to make their mortgage payments. It has been put forward by Robert Grunnah that because a particular home has been posted for foreclosure does not necessarily mean that it will remain in foreclosure forever. Therefore, it has been advised to the distressed homeowners to speak to the lenders directly to help them out with this real estate problem.