Low Mid Priced Properties Facing Foreclosure

Posted on August 24th, 2007 by hinson

Most of the foreclosures in the United States are on properties that are not very high priced. According to the latest reports, the maximum foreclosures are on houses that were bought with a loan amount of $250,000 or even less. Most of the foreclosed homes in the city of Texas are moderately priced. 90% cases of default are on such homes.

The chief executive of Foreclosure Listing Service George Roddy is of the say that such a situation has been taking place in the nation for the past 3-4 years. In the initial nine months of the year 2007, near about 31,000 homes worth over $4.5 billion are likely to enter one or the other stage of foreclosure. When compared with the same period in the last year, the reports are suggestive of the fact that there has been an average rise of 12% in the total number of foreclosures and about 19% increase in the value of homes being put on auction.

The houses that are facing foreclosure today are the result of the loans that were procured in the year 2003. On the basis of the findings of the Foreclosure Listing Service, almost 50 percent of the home loans of Dallas-Fort Worth are held by the largest mortgage firms of the country such as Freddie Mac and Fannie Mae. About 6% of the houses on default were bought by procuring the home equity loans.

In comparison to last year, there has indeed been a rise in the total number of homes that are quite highly priced. However, as a whole, such houses form a very small part of the total foreclosed properties. They represent an insignificant segment of the housing market of United States. In the three quarters of the year 2007, only 1 percent foreclosure listings are on the properties worth over $500,000.

Mr. Roddy is of the opinion that in times to come there will be a rise in the number of high priced houses. The lenders have now started charging pretty high rates of interest on the jumbo loans providing a large amount over $417,000. These jumbo loans will aggravate the problem and become a serious matter of concern for the homebuilders.

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