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Old 05-31-2007, 02:32 PM
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Foreclosure Woes: Frisco, Mansfield, Midlothian among hard-hit

Suburbs share foreclosure woes | WFAA.com | Business (http://www.wfaa.com/sharedcontent/dws/bus/stories/DN-foreclose_31bus.ART0.State.Edition1.36d5c91.html - broken link)
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Old 05-31-2007, 03:03 PM
Location: Lake Highlands (Dallas)
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And as rates continue to climb like they have in recent weeks, the foreclosure rates are going to continue to climb.

One thing I thought was interesting - Dallas and Ft Worth, while they have 33% of the population (2M of the 6M in the region), had 30% of the foreclosures. Relatively minor, but that's a slightly lower rate of foreclosures inside the two city limits -vs- outside Dallas and Ft. Worth proper.
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Old 05-31-2007, 03:24 PM
Location: Topeka, KS
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I noticed you complete glossed over the cities listed in the first two paragraphs of the article....
When it comes to foreclosure woes in North Texas, there's plenty to spread around.

While big cities Dallas and Fort Worth have the most home foreclosures, some suburbs – including Arlington, Garland, Grand Prairie and Mesquite – are also seeing large numbers of home loan defaults.
But before this descends into another urban/suburban mudfest, I think everyone would agree that foreclosures are bad for the area.
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Old 05-31-2007, 03:26 PM
Location: DC burbs
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A very dear friend of mine is an auditor at HUD here in DC. Apparently there is an enormous amount of mortgage fraud that occurs in DFW and the surrounding areas, including Houston. Due to that fraud, people overstating income, submitting forged documentation to get the loans to begin with, this has a dramatic affect on foreclosure. The adjustable arms are hurting many around the country.
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Old 05-31-2007, 03:47 PM
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The title of the story is "Suburbs Share Foreclosure Woes". So how is that 'glossing over'? The happy-suburb talk here, where no criticism is allowed or there are 'sanctions' shows the denial - and this story ought to wake up a few who think they are going to make money in one of these towns. The foreclosures in Southern Dallas appear to be on the very low end where people can't make enough to make their payments - the upper-middle class and rich areas are unaffected. The suburban foreclosures generally show the taste for people living beyond their means to impress others. And isn't that one of the credos of our 'popular suburbs'?

Sorry, I lived through the RE bust of the 1980s in Dallas and Houston and I see people making the same mistakes all over again. Don't they deserve fair warning?

The last map published in the DMN shows the problem:

http://www.dallasnews.com/sharedcontent/dws/img/04-07/0406foreclosures.pdf (broken link)
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Old 05-31-2007, 03:58 PM
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lots of speculation in that article about who is affected/involved in foreclosures and why---not too specific as to whether it is first-time homebuyers or people with other reasons for going into foreclosure--nothing about "fraud" was mentioned although it certainly could be a factor...

I read some time ago that the fastest growing segment in bankruptcy filings was in people over 50--that is a very scary statistic to me---that is the group that should have financial reserves to fall back on...
It does not surprise me to see Mansfield on that list--we drove through there this past weekend--were in some nice subdivisions and saw many, many houses for sale...much more so than Keller or Colleyville--

Don't know that they are all foreclosures--but looks like wholesale, pick-up-and-leave-the-area---I am talking a for-sale sign in 2 yards out of 5 or 6...

Think this will get worse--heard that the 2nd quarter is supposed to be very busy for court filings...
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Old 05-31-2007, 04:11 PM
Location: Topeka, KS
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Ah, but you didn't title the thread as "Suburbs share woes", you specifically identified only three of the, at least, seven suburb listed in the article. And to be honest the point of my quote was not to include Dallas or Fort Worth in that list, but the other four suburbs.

Regardless of their income a foreclosure is the results of too many bills and not enough money. (And you could most likely throw in a few misplaced priorities for paying the wrong bills first.) Which I would take as all of them living beyond their means.

As far as fair warnings go, you'd think that someone living on the edge, who saw the DMN article related to the map from almost two months ago, would have taken action by now to try and stall an imminent foreclosure.

The priorities should be, food, shelter, transportation, electric, gas and water. Everything else can slide. Turn off your cellphones, cable and internet. Sell anything and everything not nailed down. (And by the old Tiger Band rules, "Anything I can pry up wasn't nailed down.") Get a second, third or fourth job. Approach the problem with Gazelle like intensity, and do what every you have to do, (that's legal), to keep your family safe and together.
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Old 05-31-2007, 04:34 PM
Location: The Big D
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And no one mentioned MY scary city? Of which would fall into the "Dallas" catagory when it comes to the value of the house in foreclosure vs the other burbs. Like this:

"In Dallas, the average loan value of homes posted for foreclosure was $110,402, compared with $99,993 in Fort Worth.

In Frisco, the average loan amount this year is $262,714 one of the highest in Collin County. "

I'd have to say THAT is a case of living beyond ones means. Going in w/ hungry eyes thinking the real estate here in Texas is "so cheap" and going for as much as possible stretching oneself beyond comfortable.

As for my area and foreclosures they would be on the higher end. Then there are only and have only been a small handful and only 1 in the REALLY high-end that was a TOTALLY strange situation. As for the others in my area that have occured over the last 3 years there have only been 5 and that is for the ENTIRE area. Here is what I do know about them:
1. Both adults lost jobs, alcoholic dad and were on the verge of foreclosure w/in a month when the dad "accidently" killed their young child. Yep, that one foreclosed on fast. Really sad situation.
2. Buyer that bought a relo house was using it for criminal activity. Basically a front to make authorities think they were "legit". BUSTED! Too noisy neighbors, lol.
3. Divorce then one that got the house got into drugs. Of course he ended up losing the house.
4. Bad house period from the floorplan to the poor construction quality and on a custom home.
5. Same as #4 although this one does not have the really bad construction quality. The tastes in both of these homes is HORRIBLE!

As for the rest of the city I'd say some of them may be older people that went into retirement or nursing homes and gave up their house. It may be cheaper that way in the end if you think about it. Investors from out of state that bought houses sight unseen thinking "Texas real estate is cheap" and the mentality of "everyone is moving there". Does not always work when the house(s) you bought were at the VERY lowest end of the spectrum and not in great areas. Those transplants all want "new" or so we are told . My mom has one investor from out of state that calls her up from time to time wanting to buy another house for a rental or to sell one of his rentals. The homes he buys are NOT the best at all. That mentality of "Texas is cheap" does not really fit and some of these guys are losing their shirts and hurting our real estate market. OHHH, and then you have people that won't help a homeowner if they are needing to sell to avoid foreclosure. I know of one realtor that the sellers HAD to sell and were willing to drop their price to avoid foreclosure and bankruptcy and the realtor refused. Said they would take the sign down but would not release them to use another agent. The sellers were smart enough to get out of it, relisted w/ another agent at the lower price and sold and avoided foreclosure and bankruptcy. Really sad when you hear about things like that all because of greed this realtor wanted the sale but at a higher price.
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Old 05-31-2007, 04:34 PM
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Hey the whole title wouldn't fit! (I copied and pasted it from the WFAA story).

I'm not warning current residents, I'm warning all those who come here for advice on where to move - be aware if you buy in a burgeoning foreclosure area - you are taking a risk.
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Old 05-31-2007, 04:37 PM
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Mom of 2, right on again!

Yes there were a lot of seminars in CA where the touted product was new tract homes in Dallas suburbs for rentals - people bought them sight unseen and now they are paying for their mistake.
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