2006 Texas Foreclosures Among Very Top in United States: Dallas-Fort Worth Areas Especially Hit Hard
Dallas foreclosures rose to great heights in 2006 like Cowboys' All-Pro quarterback and media darling Tony Romo.
Unfortunately, Dallas and North Texas foreclosure totals are not expected to soon experience the type of drop-off that Romo and the Cowboys displayed at the end of this season!
2006 Texas foreclosures reached unprecedented levels last felt since a real estate crash in the mid-eighties, according to a December story in the Fort-Worth Telegram.
Dallas and Fort Worth-Arlington were two areas heavily hit by mortgage foreclosures in 2006. The evidence is in the numbers compiled by MSN Real Estate.
. Dallas ranked fifth for foreclosures in the third quarter of 2006 while Fort Worth-Arlington registered at the seventh slot.
. There were 13,422 Dallas foreclosures from July through September of 2006, or roughly one Dallas foreclosure per every 99 households! Third-quarter Dallas foreclosures were 3.658 times the national average and nearly up 10% when compared to second-quarter figures.
. There were a combined 6,854 Fort Worth-Arlington foreclosures in the third quarter of 2006. These totals broke down to one Fort Worth-Arlington foreclosure per every 101 households and a 13.8% increase from second-quarter figures. Fort-Worth Arlington foreclosures were 3.6 times the national average.
A mid-December story in The Dallas Morning News reported that Dallas-Fort Worth foreclosures for January 2007 were steady with the totals from the previous couple of months.
The story reported that 3,500 Dallas-Fort Worth homes were posted for foreclosure in January.
This figure marked a 20% increase from the totals for the same month last year.
Examining Dallas-Fort Worth Foreclosures at a Closer Level
What are some of the reasons behind these high numbers of Dallas foreclosures and Fort Worth foreclosures in 2006 and now 2007?
The Worth-Telegram story attributed these high Texas foreclosure totals to typical culprits like job losses, unexpected medical bills and divorce.
High energy costs and living expenses in the state were also contributing factors, while slumping home sales in nine out of the twelve months of 2006 didn't help either.
The story also attributed the increase in Texas foreclosures to adjustable interest rates on risky loans made over the past couple of years.
This point struck a major chord with a recent Center for Responsible Lending study that linked high national foreclosure totals to the growing reliance on subprime loans.
The December study found that some 2.2 million subprime home loans made in recent years have already failed or will eventually end in foreclosure.
Over the last couple of years, subprime loans have made it possible for people with less-than-stellar credit histories or other red flags to own their very homes.
However, subprime loans come with various risky features, which typically include adjustable interest rates, balloon payments and prepayment penalties.
These types of risky loans have seemed to impact the rise of some Dallas Fort Worth foreclosures as homeowners have been unable to meet payments on adjustable interest rates, according to the Worth-Telegram story.
Facing Texas Home Foreclosure? What You Should Do Next
If you're facing home foreclosure in Dallas, Fort Worth or another city in Texas, you may not be alone and could potentially save your home.
Use the information on this website to help determine whether refinancing, debt workout plans, Chapter 13 bankruptcy or other foreclosure options may help you keep your home. Then, fill out the appropriate form so that we can put you in touch with the right professional to help you determine your next steps.