Austin's Foreclosures Down By 15 Percent

Austin Foreclosure News

Article Abstract: Austin foreclosure rates seem to be remaining at bay relative to the rate of foreclosures in Texas or California. Dallas foreclosures seem to be heading to record numbers with experts placing part of the blame on the practices of many lenders and brokerages across the country. Subprime mortgage and ARMs may have led to a large portion of Texas foreclosures. Subprime loans in the Austin area were not as prevalent as the rest of the state, or for that matter the country. For the entire Austin foreclosure article please see the article below:
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Attorney General Greg Abbott said the rate of foreclosures in Texas is a crisis. He also warned that some lenders are contributing to the problem.

"In part, because a lot of these homeowners were misled into entering into these loans to begin with, that we've been involved in bringing legal actions against some of these sub prime mortgage lenders, such as Ameriquest," Abbott said.

Abbott encouraged those homeowners to contact their lenders directly or to talk with a Housing and Urban Development-approved agency.

While cities like Fort Worth, Dallas and San Antonio suffer with increasing foreclosure rates, Austin is actually fairing pretty well.

KXAN Austin News spoke with two realtors Monday, who said that the foreclosure rate in Travis County is actually down 15 percent, compared to this time last year.

"When you break it down to regions, Austin is one of the best markets in the state, if not the country," said real-estate consultant Carson Gallagher.

Gallagher has been a real-estate consultant in Austin for over five years. He said there are several reasons that Austin is doing better than the rest of the state.

"We still have a very high standard of living, high quality of life, and the cost of living is lower," said Gallagher.

But, how long will it last?

Carl Shurr, a real-estate professional, said that foreclosure rates could be about to increase.

The fallout from the sub prime debacle, which had new homeowners with lower credit scores buying, has yet to make its impact.

The problem with the market is that many new homebuyers are purchasing adjustable-rate mortgages.

While a flexible rate may be good for a person looking to live in a home less than two to three years, it could pose a huge financial problem for the long-term owner.

That 5-percent rate you got when you bought your home could double or triple within a year.

"If inflation continues and rates keep increasing, adjustable rate mortgages are going to go right with that. Even though foreclosures are down 7 percent since last year, they're up 112 percent since 2001," said real estate professional Carl Shurr.

For those facing a foreclosure, selling your home can also be a problem.

"The longer it is on the market, the more questions a buyer will ask, and the lower offers will be," said Gallagher.

If you do find yourself in financial trouble, both our realtors suggest the following.

"The best way to protect yourself is to try and refinance now," said Shurr.

"Be in constant contact with their lender, don't ignore the notices. That lender is a lot more interested in keeping you in that loan than they are to putting you into a foreclosure," said Gallagher.

Summer of 2008 could bring on a new wave of foreclosures and new "For Sale" signs. It is somewhat ironic that as we speak of increasing foreclosures, the Leander/Cedar Park area rates as the third-fastest growing suburb in the country.

For more Texas foreclosure news and related stories, please return to the Texas Foreclosures homepage.

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