Houston Community News >> Houston Foreclosure Rate Highest Since 1989
8/8/2006 Houston-- Not since the late 1980s has Houston seen so many homes fall into foreclosure. More than 1,400 homes on the market right now are the result of a lender foreclosing and that number is expected to increase.Advertisement
As a real estate agent, Jack Maxwell can spot trends. “When times are good lenders tend to relax their underwriting requirements and make loans they otherwise might not have made in the past,” said Maxwell. That’s what’s fueling this. Experts say the people losing homes simply bought more than they could afford. Or purchased using adjustable rate mortgages... and are now seeing their monthly payment rise with interest rates.
“A lot more people are going to lose their homes over the next several years,” said Amanda LeCureux, Foreclosure Information & Listing Service. Her company compiles the numbers and she reports more than 2,400 foreclosure postings at the August 1st sale. That is the highest figure since 1989.
Last month the number was at 2,135. Compared to August a year ago, when the number was only 1,708. “The homeowner, the potential homeowner, needs to be really cautious and make sure all those good deals out there in the mortgage industry may not necessarily be a good deal for you as a potential homeowner but the mortgage industry itself,” said LeCureux.
There are so many foreclosures on the market right now that Maxwell bought one for himself. He agrees foreclosures will likely continue as long as creative financing in a growing market does, too.
(Contributed by Jason Whitely)