According to an article in the Dallas Morning News, nearly 16 percent of homeowners in the Dallas-Fort Worth area owe more on their home than they are worth. In 2008 Dallas-Fort Worth homeowners lost nearly $4 billion in home value.
Nationwide, residential home values dropped $3.3 trillion last year and 17 percent of American homeowners are under water on their mortgage. And many of those homeowners are already facing foreclosure .
This drop in home value will no doubt increase the number of foreclosures and bankruptcies here in Dallas-Fort Worth; but also nationwide. Many homeowners who realize they are under water in their mortgage try to sell the home; but with the current problems in the economy many are not buying or even considering buying a home, especially one with declining value.
The article said:
"People without jobs, or fearing job loss, typically don't buy homes, no matter how low prices or mortgage rates might be."
This is true and as Dallas-Fort Worth residents watch their home's value decline many may opt for bankruptcy to save themselves before it's too late.