Despite Increasing Postings: The Foreclosures Fall in Dallas by 17% (Part II)

A deeper analysis regarding the foreclosed homes within this year features that on an average the loan terms were meant for approx 4 years. In Dallas-Fort Worth the foreclosed homes had a median of approx $160,000 in the real debt. Among the foreclosed homes almost 88% were homes with single families.

On the whole, the properties that were being auctioned, in totality had a debt of $1.46 billion. During the initial few months of 2008 the amount was almost $1.4 billion. According to some analysts this foreclosure reduction might also be the result of lenders who are mostly overburdened.

Dr. James Gaines from the Real Estate Center at Texas AM University observed that, “I’ve heard about the delays at the lenders, most of whom have reduced personnel. Foreclosures could get nasty as job losses mount. We avoided a major hurdle with the collapse of dicey credit terms, but there’s no avoiding it if people lose their jobs.”

D’Ann Petersen who is a business economist working with the Federal Reserve Bank of Dallas commented that in case, there is a slowdown of foreclosures resulting from successful modification of loans then it will surely “indicate some stabilization, whereas delays would suggest continued deterioration.”

Lenders feel that they are storming up the attempts to alter loans and curb foreclosures as well. As per the Hope Now data, since January, more than 1.5 million homeowners in the U.S. have benefited from loan modifications. The Hope Now is a ‘Washington, D.C., private alliance of mortgage servicers, investors, counselors and other mortgage-related firms.’

Within the second quarter of 2009 above 318,000 modifications of mortgages occurred throughout the country compared to the 220,349 modifications during the second quarter of 2008. All these modifications were done by the Hope Now firm. All over the country the workouts of the loans increased by 25% in the month of June.

Though the number of foreclosures reduced in North Texas. the 8,139 homes with single-families under the control of the lenders can be compared with 37,000 pre-owned homes with single families that are presently meant for sales.

Sue Meyer, the president of Coldwell Banker Residential Brokerage observed that, “The buyers out there are looking for bargains. They are hearing so much about foreclosures and short sales, and feel they are going to really win some wonderful properties.”

Meyer feels that at times the potential buyers get discouraged due to time consuming procedures. She observed, “You have homes listed at excellent prices, and the buyers are still thinking they can come in so much lower. But when they lose out a couple of times, they know they should come in at a reasonable price.”

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