Foreclosures Increase 52%

(Source: Austin Business Journal)

Foreclosures for January 2009 rose 52 percent over the same month last year for the nine-county Central Texas region.

Postings filed for the upcoming Jan. 6 auction totaled 2,329 notices, compared with the 1,534 postings filed for the same month last year, according to Addison-based Foreclosure Listing Service Inc.

“Foreclosure postings filed for the upcoming auctions in January were higher in all nine counties than they were one year ago. In seven of the nine counties, the gain in posting activity was 50 percent or greater,” said George Roddy Sr., president of Foreclosure Listing Service.

That gain was surprising in the face of Fannie Mae and Freddie Mac’s pledge to suspend foreclosures on occupied homes until Jan. 9th, Roddy said.

“Fannie Mae/Freddie Mac’s pledge is on occupied single-family homes. Therefore, abandoned or vacant single-family homes will still be auctioned off,” Roddy said. “I am estimating that vacant homes comprise approximately 20 percent to 25 percent of Fannie Mae/Freddie Mac’s foreclosure postings.”

The highest gains in the Austin area came from Travis County, with a 58 percent increase over January 2008; Bastrop County, with a 73 percent increase in that same time period; and Williamson County, with a 50 percent increase in foreclosure postings over the same month last year.

Hays County had only a 9 percent increase in January from the same month in 2008, but its foreclosure postings rose 27 percent from the previous month.

Home foreclosure filings must be in at least 21 days before a foreclosure auction, Roddy said, which is why the company can list the January foreclosure numbers.

The foreclosure auction for mortgage delinquency and homeowner’s association fee delinquency takes place the first Tuesday of each month in every county seat throughout Texas.