Fort Worth Foreclosures for Sale Rise as Home Defaults Grow

by on cities

Fort Worth foreclosures for sale grew in the residential sector in the three-month period ended September as home loan defaults rose, based on data from the Mortgage Bankers Association and from a foreclosure research firm.

According to the MBA, nearly 10 percent of Texas homeowners defaulted on their home loans in the July-September quarter and about two percent of them went into foreclosure.

A total of 61,676 residential units in the Fort Worth-Dallas area received foreclosure notices this year, an increase of 23 percent compared to last year.

Statewide, the default rate during the July-September quarter was 9.8 percent and almost two percent of delinquent loans were ultimately foreclosed by the end of the quarter. Nationwide, the delinquency rate was 9.9 percent and the percentage of defaulting loans that ultimately went into foreclosure was 4.5 percent.

More than five percent of all home loans in Texas were in default by more than three months in the July-September quarter and most of these loans were considered to ultimately go into foreclosure.

Based on data from a nationwide foreclosure monitoring firm, a total of 10,700 residential units in the Fort Worth, Dallas and Arlington metro area received foreclosure notices in the July-September quarter, with many of them already counted as Fort Worth foreclosures for sale.

The total foreclosure filings represented 0.45 percent of all households in the metro area or one in every 221 residential units.

The Fort Worth area is not as battered by foreclosures as 95 other large metro areas, but its pace of foreclosure grew by nearly 5 percent from the April-June quarter and by nearly 8 percent from the July-September quarter last year. In the foreclosure rate chart ranking 203 large metro areas, the Fort Worth area is 96th.

According to Scott Norman, vice president of the Texas Mortgage Bankers Association, he expects delinquencies to drop across the state during the rest of the year. He said that unemployment will continue to push home loan defaults, but added that Texas will fare much better than other states because Texas has not been clobbered by the foreclosure crisis as much as other states.

According to housing analysts, the rise in home prices in most states indicates the start of a housing rebound, but unemployment and other economic factors may slow down or block a full recovery.