Area homeowners still battling foreclosures

Foreclosure postings filed on Denton County homes climbed 29 percent over the past year, according to data from Foreclosure Listing Service, Inc.

The numbers show that 668 postings were filed threatening county homes with foreclosure at the upcoming foreclosure auction on February 1st.

“Needless to say, the fallout from this foreclosure crisis is going to take a long time to work through,” said George Roddy, Sr., President of Foreclosure Listing Service, Inc.,

“Until a significant amount of workers begin to be re-employed, there is simply no reason for foreclosure postings to decline.  Even re-employment in today’s market does not assure that a family’s bills will be paid because many workers are being hired at wages far lower than at their previous job.”

 “I know the last thing any of us wants to hear is that this foreclosure crisis is far from being over; but, unfortunately, that is the case. Plus, I am concerned that so many families’ budgets are already stretched well beyond their means and one little hiccup in their income stream or an unexpected major expense could push their budget over the edge for months to come.”

Roddy said that the number of “upside-down” properties has grown significantly.

“Foreclosure postings filed on D/FW homes in an upside-down position have become worse over the past year.  For the upcoming D/FW foreclosure auctions in February, approximately 26 percent of the residential postings were filed on homes in an upside-down situation.  Over the past year, the share of home postings in an upside-down position has increased 24 percent.”

When a home is upside-down, the original mortgage amount exceeds the current value of the property (based on the assessed value by the county’s appraisal district).  Unless the homeowner put down a significant down payment, the homeowner often times can not sell the home for what is owed on the mortgage.  In addition, if the lender repossessed the home, the lender may not be able to sell the home for what it has invested in it.  This creates a no-win situation for both the homeowner and the lender.

The foreclosure auction for mortgage delinquency and homeowner’s association fee delinquency takes place the first Tuesday of each month in every county seat throughout the State of Texas.

In general, 25 percent to 40 percent of the foreclosure postings filed each month result in foreclosure.  Most of the auctioned properties are repossessed by the lender, but a number of the postings are auctioned off to a third party buyer, according to Roddy. 

 “At the January foreclosure auctions, successful bidders/buyers purchased properties at the foreclosure auctions for an average of 46 to 64 cents on the dollar.

“The word ‘foreclosure’ can mean two very different things. To the family that has lost their home as a result of foreclosure, outside of a tragic illness or death in the family, this is most likely the most devastating thing the family has been through,” said Roddy.

He continued, “On the other hand, now is a great time to be on the buying side of a real estate transaction. For those who are able to invest in foreclosure properties, today’s troubling economy may very well offer one of the best windows of investment opportunity in the history of our country.”