Texas Foreclosures Rate: Among the Highest
November 30th, 2007 by 
Joseph Smith
The third quarter of 2007 recorded a 30 percent increase in national foreclosures rate. With no relief anytime soon, real estate experts are actually expecting such a large inventory of foreclosure homes given the millions of adjustable rate mortgages that are scheduled to reset this year. Among the states hit hardest by the worsening foreclosure crisis include Nevada, California, Florida, Michigan, Ohio, Colorado, Arizona, Georgia and Indiana. Rounding up the list is Texas with one foreclosure filing for every 205 homes.
Although the other states do not have such high foreclosures rate, at least 45 out of the 50 states recorded dramatic increases. Many of the ARM borrowers have gone into mortgage default when the interest rates on their loans reset. Loan payments that were previously manageable are now unaffordable – leaving these borrowers to face foreclosure.
In 2006, over 1 million home owners lost their homes to foreclosure and the forecast for the next couple of years remain grim. The weak economy also fuels the unfortunate situation. It can be observed that states located in the Sun Belt and Rust Belt regions dominate the list of highest foreclosures rate.
Although the market is creating a favorable condition for buyers of foreclosure properties, sales activity remain sluggish as these buyers are waiting in sidelines for home prices to fall further. Sellers are getting quite anxious as holding costs soar. Many sellers are slashing down prices, hoping to receive more offers. Foreclosed homes can now be bought at a fraction of their market prices.
Foreclosure listings are currently in demand right now as they can provide buyers with much convenience when foreclosure hunting. Brokers like Foreclosure Deals are teaming up with these sellers to assist them in selling these homes by proving buyers with complete and regularly-updated foreclosure listings.
