According to an article in the Dallas Morning News, the growing numbers of foreclosure sales have dragged down Dallas-Fort Worth home prices since the first quarter of 2009. Because of foreclosures, Dallas-Fort Worth suffered a 4.7 percent decline in home prices since the first quarter of 2008. But even with the foreclosures decreasing home values, Dallas-Fort Worth is still fairing better than the rest of the country which suffered a 14 percent nationwide home price drop.
The article said:
More than 30 percent of local sales in recent months have been previously foreclosed properties. “In areas with the biggest price declines, we also see much higher levels of distressed sales, which are distorting the data,” Realtors economist Lawrence Yun said. “In many cases, homes are selling below replacement construction costs, which speaks to great value in the current market.”
As home values continue to decline because of foreclosures many otherwise financially healthy homeowners are beginning to feel the pressure. Some homeowners who are not in foreclosure (yet); but want to sell their home are finding it difficult to sell for enough money to cover their mortgage. In cases where homeowners need to sell because of a job relocation or another need to leave the area, this can cause a serious problem. Many of these homeowners end up stuck with these houses and eventually succumb to foreclosure if they are forced to leave and try to maintain two households.
For homeowners who are threatened with foreclosure because they need to sell; but have lost significant value in their home, it’s possible that the bank may be willing to allow a short sale or negotiate in some other way. You may also be able to surrender the house to the mortgage lender and/or file bankruptcy. Speak with a Dallas-Fort Worth bankruptcy attorney to find out about your options.