Austin TX Real Estate - Hill Country Austin Lakeway Homes for Sale: Dallas Area Foreclosures Reach Highs of the 1980s

Dallas Area Foreclosures Reach Highs of the 1980s

This is scary.  I was only in elementary school in the 80's, so I don't remember what real estate was like, but I can imagine it was pretty bad since I've heard many times about the interest rates of the 80s being upwards in the high teens.  We moved to Texas in 1984, and when I sold that house about 5 years ago, I noticed my parents had assumed the loan in order to buy the house.  I guess assumptions were the main way to keep your rates low, though I can't believe they paid what they paid back then just to get into the house.

 

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Nearly 4,000 homes are in foreclosure this month for Dallas, Tarrant, Denton, and Collin Counties, the 4 main counties in the North Dallas area.  That's a 49% average increase over this time last year. 

ON THE RISE
Residential properties scheduled for foreclosure auction in November in five area counties, and the change from last year.
County Number Change
Dallas 1,886 49%
Tarrant 1,222 47%
Collin 471 65%
Denton 367 38%
Rockwall 63 37%
Total 4,009 49%
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The "average" value of foreclosures is around $115,000.  This is sad because what this means is that we got a lot of first time home owners into the market, probably on an ARM, and they thought they could own a home for the same price as they pay for an apartment, but still didn't understand the responsibilities of home ownership.

3 of my last 5 listing appiontments have been with people who can't afford to actually sell their homes.

Many of the other foreclosures are people over $500k.  Yes, these are mostly the telecom executives who are living beyong their means, got an interest only ARM and now can't afford their payments...

Comment balloon 4 commentsDonna Harris • October 20 2006 10:14AM

Comments

That is scary!  I think the market down here may be heading in that direction.  This due to people jumping into the market late and not being able to sell their house. They are so leveraged out that one bad step and they are in serious trouble. Also,  I think it could really be bad in the next few years due to the amount of Pay-option ARM's that were sold to the wrong people.  It is a great product for certain people, but I don t think a majority of the individuals explain it well, as in the case of Ameriquest.  We will see what happens but if something doesnt change then  people could really be in for a suprise in the next few years.  I see that you said that most people are living beyond their means.  I think that might be viable in most foreclosure situations.  Most people spend more than they earn. That is a scary thought of what the future might bring.

 Take Care

Posted by fagsag afsdaf (45345) almost 12 years ago
You were in elementary school in the 80s?  OK, I'm feeling VERY old!  I bought my first house in 1986 and was inspired by the fact that we got a modest 10% interest rate!  It's not a wonder people were heading for the poorhouse then, and with lax lending practices now they are about to go back there!
Posted by Chris Tesch, College Station, Texas Real Estate (RE/MAX Bryan-College Station) almost 12 years ago
Sorry Chris!!  Yes, I was just a "kid" in the 80's.  I'm not a kid anymore as my husband and I are now discussing having our own kids. He's definitely not a kid anymore at the ripe ol' age of 38!!
Posted by Donna Harris, Realtor,Mediator,Ombudsman,Property Tax Arbitrator (Donna Homes, powered by JPAR - TexasRealEstateMediationServices.com) almost 12 years ago

yes they look so nice but Foreclosures are such tough on to stomach.

Posted by Paul Gapski, 619-504-8999,#1 Resource SD Relo (Berkshire Hathaway / Prudential Ca Realty) about 7 years ago

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