According to the Dallas Morning News, the foreclosure postings in the area continue to increase, with an overall jump of 18% in the properties posted for April foreclosure. Dallas County itself actually helped keep the average down with an 11% increase while other areas jumped as much as 40% (Collin County).The big question coming from so many is "Will it get better any time soon?" The short answer is, probably not. There are still multitudes of homeowners that took advantage of the generosity of mortgage lenders, purchased with no money down with and Adjustable Rate Mortgage (ARM) and these loans are reaching the time to start adjusting. For those that are living paycheck to paycheck, already there is often too much month at the end of the money. Factor in an increase of a mortgage payment that goes up even $150-$200 or more, then the choices are limited. When the creditors are already barking about the past due credit card bills, car payment is late, the kids need new shoes, and the desire for more than mac & cheese for dinner, something's gotta give! With an intense feeling of dread, perhaps a sense of failure, the house unfortunately has to go back to the lender. What a disappointment.
But the cycle has already begun and it's hard to tell how much worse it may get before it gets better. The "experts" are all over the board with some forecasting a recession and others a little less drastic outcome. All anyone knows for sure is that it will take a considerable amount of time for this cycle to complete, with likely a fair amount of government investigation, tightening of lending practices, and more lenders going out of business.
Silver lining: if you're a home buyer there may be some opportunities. As the foreclosure inventories grow, the lenders holding these properties may start to come down on their pricing in order to get them off the books. Keep your eyes open for that trend in the not too distant future.
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