Foreclosure Crisis: Foreclosures Slow Down In Austin Without Raising Hopes

The Austin metropolitan area is noting a decrease in residential property foreclosures but analysts are giving out warning notes. It does not point to the end of the road because of market fluctuations and effects from the massive mortgage crisis raging through the country.

As yet the number of foreclosure listings in this region with four counties is 5,870. This is inclusive of those included in the October auctions. It shows a 7% decrease when compared to the first 10 months of the previous year. A reliable online data collection group has released the numbers. In Texas the Austin region is the only important place where the postings are actually going down. However it is well to remember that these figures are above the lowest total reached in 2001.

It is being predicted by George Roddy, president of the online firm that in Austin Metro for the third consecutive year foreclosure numbers will go down in the two counties of Travis and Williamson. He foresees about 3,400 postings in Travis County and 2,100 in Williamson County for this year. He does not want to be a damp squib and is not behind to say that all this is good news. But one should not forget that this has not changed the general flow of things – the way it has been going for the past few years. In October those houses went into the red, which had taken the loan in 2003. This is an average reading. In this equation without counting the sub-prime factor a lot of financing and refinancing had taken place during the last four years. This itself points to the fact that the problem will continue to harass for at least another three or four years. It might even continue further on.

Predatory lenders and greedy borrowers are being blamed for the debacle which has sent shivers down Wall Street – shivers that sent rumbles across the world stock exchanges. Borrowers were lured in by teaser rates of interest and little or no down payments. But when the balloon punctured with one by one borrowers being unable to redeem their dues the houses fell into foreclosure. Money stopped rolling in for the banks. The lenders were straddled with managing innumerable expensive foreclosure operations. It was an unhappy situation for all - the citizen, the locality as well as to the government.

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