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Foreclosures accumulate
07:09 AM CDT on Friday, May 15, 2009
As layoffs continue in Denton County and the region, foreclosures have, so far, shown no signs of abating, local real estate officials say.
While residential foreclosure listings for the upcoming June sale are slightly lower than last month’s, residential foreclosures in Denton County for the past six months have topped 3,000 for the first time at 3,175, according to records from Foreclosure Listing Service Inc.
Last year, as of the June foreclosure sale, Denton County had 2,784 postings.
“Every time … that I think we have reached the high for this foreclosure cycle, a few months later we spike and pass it again,” said Bonnie Brown, a spokeswoman with the Addison-based listing service. “It’s anybody’s crystal ball.”
Foreclosure sales show a continued number of homes being posted for auctions, though some have included lenders who have reposted homes.
According to records, only 159 foreclosure postings were processed for the May auction, which started with 595 listings.
About 54 percent of the residential foreclosures filed for June are repeats — homes that were not processed or sold at prior foreclosure auctions.
About 51 percent of the May foreclosure listings were repeats, Brown said. By comparison, 38 percent of the residential listings last year at the same time were repeat listings.
Brown said the growing percentage of repeat postings can be the result of several factors, including whether lenders can handle the growing number of loan modifications being sought.
“With layoffs continuing, there’s not a doubt in my mind that the foreclosures will continue, but how high will they go?” she said.
“At the current pace and the current economic conditions, Denton County is on track to have somewhere around 6,000 postings at the end of the year. If layoffs worsen, that number could get higher,” Brown said.
Chris Rosprim, local commercial real estate broker with Scott Brown Commercial and immediate past president of the Greater Denton-Wise County Association of Realtors, indicated that he was concerned about repeat foreclosure postings.
“Banks and lenders are still posting properties but passing up foreclosure,” he said. “What will happen when they finally figure out how Washington is going to react?”
The latest records available show that a total of 446 homes were sold in Denton County in March with a median selling price of $186,500 — the lowest average selling price since March 2008. The median price for homes sold in March was $157,300.
The average home sold in March was on the market for 6.1 months — the longest period since October 2004, according to the Real Estate Center at Texas A&M University.
“There’s just too many homes out there and too many people who are delinquent, because so many people are losing jobs,” Rosprim said.
“With today’s news of Chrysler [closing dealerships], those people are certainly going to be scrambling for jobs,” he said. “I don’t think we’ve seen the worst of it yet, at all, unfortunately.”
DAWN COBB can be reached at 940-566-6879. Her e-mail address is dcobb@dentonrc.com .
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