Small Town News

Foreclosure rate falls to 17 month low

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For the second month in a row, foreclosure rates in Hays County have shown a sharp drop over the same month in the year prior.

This week, the county recorded 96 properties listed for foreclosure at the upcoming June auction, a 30 percent decrease from the 138 properties posted for foreclosure in June of 2009.

This month's listings represent the lowest number of foreclosures in 17 months. Foreclosure postings haven't dropped below 100 since January of 2009.

Last month also saw a decrease over the year prior, with 110 properties posted for the May auction. That's a 12 percent decrease from the 125 properties listed for the May 2009 auction, and a 30 percent drop from the 157 properties posted for the April sale.

Prior to the May auction, just one month out of the last 16 had fewer listings than the same month in the year prior.

Year to date, the county has recorded 797 foreclosure listings, a 14 percent increase over the year prior, and a 36 percent increase over the same period in 2008.

David Aston, a foreclosure specialist and owner of the Buda-based ERA Millennium Realty, said the decline in foreclosures over the last two months may be partially due to increasing numbers of last-ditch efforts such as loan modifications or short sales, in which the bank agrees to allow homeowners who are at risk of foreclosure to sell their property for less than the total value of the note.

Most local short sales sell for about 10 percent less than the loan amount, Aston said.

"With all the incentives that the government is offering the banks, they're incentivized to not foreclose on properties," Aston said. "They're really trying to push the banks and lending institutions to not foreclose and sell those homes via short sales."

However, many agents prefer to steer clear of short sales, Aston noted, because it may prolong the buying process and be difficult to close the sale.

"There has not been a streamlined process for short sales," Aston said.



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© 2010 The Free Press Buda, Texas. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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