Foreclosures up in Fort Worth, TX

[Tim Hicks (Texas)]

The winds are shifting to the inevitable here in TX.


Follow this link: http://www.dfw.com/mld/dfw/business/5029650.htm


No wonder I am having so much trouble on refi's. We are up 2%, everybody else is up 9%

 

[Mike Garrett RAA]

The number of foreclosures here has risen over the past two years too, still no where near the late 80s. In almost every case we can attribute it to 125% equity loans. If there is no equity it sure is easy to walk.

 

[Tim Hicks (Texas)]

TX does not allow 125% equity loans either! We can do it without inflated equity loans.

 

[larryhaskell]

Truth be known, with dishonest LOs and appraisers, the 125% loan is really a misnomer. I'm convinced that many loans could in fact significantly exceed 125%. Of course, when your upside down in your house does it really matter if it's 10%, 25% or even 50%. All you have to do is pack all of your worldly belongings in a U-Haul and skedaddle.

 

[Tim Hicks (Texas)]

You make a good point, Larry. We have appraisals pushed 10-25% high for our 100% equity financing. I can only imagine how bad it is for 125% financing. Why does our profession contribute to this problem?

 

[Restrain]

I have one on my desk, they closed on it in December at $330,000, want more. I looked at the comps, cant figure out how they got $330,00 in the first place - $295,000 at first blush.

Oh, well. It's torpedo time again.

Roger