Foreclosure activity in northern Texas has steadily increased since the end of pandemic-related federal regulations last year. Currently, foreclosed homes are being auctioned as the homes on the market are taking longer to sell.
Lenders have scheduled foreclosure auctions for 795 homes in September, up from 331 last September, according to Foreclosure Listing Service, a McKinney-based real estate data firm.
Homes have been on the market longer than at the start of the year, and we feel we need more sellers reduce the price of their home to sell them. As a result, it’s getting much harder for homeowners facing foreclosure to sell before the auction deadline, said Foreclosure List, the McKinney-based real estate data company chief operating officer of his services. said Curtis Roddy.
“In the past, when the market was red hot and someone had just filed a foreclosure, you could sell your house in a day,” Roddy said. With 20-30 days on the market before you get an offer, it’s not easy to sell a property before it’s foreclosed.
“There’s still a lot of equity left in some of these homes, but people just haven’t been able to sell them quickly before the auction.”
In the first eight months of 2022, 4,740 homes were filed for foreclosure in major North Texas counties. This is almost triple the number of applications in 2021. In 2021, the federal moratorium on foreclosures is still in effect for most of the year, and North Texas Lowest filing level in decades.
Roddy said the rise in foreclosures represented a return to pre-pandemic levels, rather than the surge in foreclosures seen during the 2007-2010 subprime mortgage crisis. In August 2010, year-to-date, he had 45,398 applications for foreclosure, and in that month alone he had 2,750 applications.
“I don’t think you’ll see anything like that,” Roddy said. “The big difference between now and then is the amount of stock people have in their homes.”
As of Monday, major North Texas counties saw a 40% increase in home foreclosure filings from July to August. “We expect to see a gradual increase in foreclosure posts. I don’t expect to see a 40% monthly increase, but we do expect to see an increase in foreclosures through 2023,” he said. .
Compared to other major northern Texas counties, Dallas County had the highest number of foreclosure filings ever in August with 285, up 41% from last month. Collin County foreclosure filings increased 72% from last month to 103, more than tripling from last year.
According to Attom Data Solutions, even if the number of foreclosures increased, it would represent only a small fraction of the housing inventory, about 1 in 5,500 existing homes.