Here's an interesting stat about foreclosure (Houston, Dallas: sales, real estate, HOA)

[usc619]

1 out of every 65 homes(23,284 total foreclosure) sold in Dallas in the first 6 months of 2007 went into foreclosure

1 out of every 57 homes(13,221 total foreclosure) in Ft.Worth/Arlington went into foreclosure

while just 1 out of every 127 homes(16,057 total foreclosure) in Houston/Baytown/Sugarland went into foreclosure.


BTW: I posted this on the houston fourm and I also wanted to see what you guys think about this.


California cities fill top 10 foreclosure list - Aug. 14, 2007

[loves2read]

how can a home that is sold go into foreclosure within 6 mo--makes no sense...

[TriumphOfTheSprint]

That stat means 1 foreclosure for every 65 households in the Dallas MSA (65 x 23,284 = 1,513,460) during the first 6 months of 2007. It has nothing to do with the 2007 home sales.

[DentonPirate]

Home sales are well off as well.

What is happening is that people qualify on the sale price at a "teaser" rate. Taxes and rates escalate, people bail. Now this doesn't include blatant fraud where the buyer and seller, along with a crooked lender and appraiser, put together a deal for an inflated price and split the proceeds.

You can find good deals in new home subdivisions. People get in home, ARM, teaser rate. Taxes are on land value only. Within the year, the new tax rate skyrockets as the home is added, the HOA dues hit, and the rate adjusts. There's stories of the costs jumping $1300 per month. That'll get you right back out of that home, and that's happening a lot.

[galore]

Originally Posted by DentonAppraiser

Within the year, the new tax rate skyrockets as the home is added, the HOA dues hit, and the rate adjusts. There's stories of the costs jumping $1300 per month. That'll get you right back out of that home, and that's happening a lot.

Which is amazing, given that it isn't exactly a surprise but well known in advance that those costs will adjust.

[USA_Mom]

Originally Posted by galore

Which is amazing, given that it isn't exactly a surprise but well known in advance that those costs will adjust.

See that's what I so don't understand. I mean I can *sort of* understand a new home buyer building and them not listening that the tax rate is based on UNDEVELOPED land, then you get a surprise the next year (although I don't really *get* that either because you can do minimal research and guesstimate fairly close). But WHY (and maybe I'm just naive) would someone choose a mortgage where the interest rate IS going to go sky high? I know friends of ours (now foreclosed friends of ours) could not get why we would want a fixed rate that was at least 1 to 1.7 percent higher than their 2 year rate...well gee? I wonder. But in all seriousness HOW are adjustible rates good for *most* consumers? I really don't get it.

[loves2read]

a home's taxed value can only appreciate so much in one year--it is capped by law--so it will not jump to full appraisal pricing in one year--but if the home is completed and the builder has to pay out the construction loan before it is sold first time, then it enters the tax rolls as "improved property" and first year's tax appraisal is set---that means that the second year it can go to full appraised value--so lot has to do with timing of purchase...

some mortgage companies and real estate agents (especially sales agents who may not be actual real estate agents with home construction companies) do not provide full discloser in such a way that it is MEANINGFUL to a buyer...lots of buyers got hosed and mislead--lots of people say they should have known better--and probably they should have--but they were told what they wanted to hear--not what was true--

lots of people buy stuff based on what they want to hear about the product--that is what the media stream in US is all about--hyping and selling to people who don't need half of what they buy--but what would happen to our economy if people just shut down and spent 50% less than last year--our economy would be in depression mode so fast it would be like walking in front of an 18 wheeler going 80 MPH...smackdown...

[TriumphOfTheSprint]

Originally Posted by loves2read

a home's taxed value can only appreciate so much in one year--it is capped by law--so it will not jump to full appraisal pricing in one year

I think - someone correct me if I'm wrong - that there is not a limit on the appraisal increase, only on the assessed increase, and then only if the homestead exemption is filed. So, a house could be appraised at a 20% increase, but if the homeowner has a homestead exemption on file, their assessed value will only be increased 10%. The additional 10% of assessed value can then be added the next year.

This is one reason why it is important to file for homestead at the beginning of the calendar year after you buy the home.

[Roma]

This is interesting. I did hear also that most homes that are going to go into foreclosure do so within the first year. So this makes sense. I mean right off the bat they can not afford the home they just bought.

[USA_Mom]

Originally Posted by Roma

This is interesting. I did hear also that most homes that are going to go into foreclosure do so within the first year. So this makes sense. I mean right off the bat they can not afford the home they just bought.

ITA if that if that statistic is true, how did they qualify for the loan?