Central Texas Defying National Foreclosure Trends

While the rest of the country is getting a battering from the foreclosure rage in Central Texas the pace has been checked. There has been a decrease in the number of foreclosure listings pointing to the region reporting less than the national average.

The first Tuesday of each month sees a lot of activity in court premises as one by one properties fall under the hammer for unpaid taxes and mortgages dues. The lenders are trying to realize the amount by selling the properties. According to Peter Sajovich, an expert in the real estate affairs, those worst hit are single-family houses, condos and condominium conversions with price tags below $200,000. Most of the foreclosed units are in far flung regions and had been purchased by investors who came from outside the state.

The buzz and hum is on in Central Texas but the noise is far less than what it is in other parts of the country. Here not only is a fight being put up against the raging storm but also there is a positive drop in numbers. During the worst hours there had been 400 listings each month. But now that has dropped to 280.

The accusing finger for kicking off this national crisis points to rising sub-prime interest rates. The sub-prime mortgage category had been created to benefit those with poor credit history. The idea was to give these people a chance to realize the great American dream of owning a house of their own. But unfortunately they either fell prey to predatory loans or to their own greed of having something, which they knew they could not afford. It has led to a credit squeeze. Thus both lenders and borrowers are adversely affected.

Austin is in relatively better health mainly because the valuation of houses was not arbitrarily increased to suit rapacious lenders. The price has always been within limits. Moreover the job picture is also upbeat. Austin has become a haven to reside in. If this sort of weather holds then it is hoped that the real estate market will continue to look fine even beyond the current year.

However downtown Austin is causing some creases on the brow. Here many building complexes care coming up willy-nilly. The market might soon become over saturated even before the project is completed and residents start to move in.

Via

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