More than 42,000 Dallas-Fort Worth area homes have gone on the foreclosure auction block since January 2008, up more than 35% from 2007, according to the Dallas Morning News. This is a new record for Dallas-Fort Worth. But despite the rise in foreclosures, the market remains unstable with only 40% of the homes being sold after they go to auction.
There seems to be an unusual surge of homes going into foreclosure as we end out 2008. Why? Many people are experiencing multiple financial blows as the economy goes through major corrections in the housing and financial markets. Many individuals are experiencing job losses, resetting mortgage interest rates, they then fall behind on their debt payments and sometimes their mortgage payments. Because the housing market is soft, individuals trying to sell their homes to stop the financial bleeding and restore cash flow, find that their homes sit on the market even at deep discounts. Unfortunately at this point many of those struggling financially don't take any meaningful measures to fix their finances such as filing a Chapter 7 or Chapter 13 bankruptcy and eventually they succumb to foreclosure. That's the picture, it's not pretty; but it's the truth.