This is just for the Dallas-Fort Worth area but the number of foreclosures filed against $1-million-plus homes more than doubled this past year. One hundred twelve percent higher for the first six months of this year compared to last year, to be exact.
As for slightly less-expensive homes, the increases in foreclosure filings were still daunting: 53% for houses $500k to just under $1 million, and 39% for houses $300k to just under $500k.
It’s still the case that most foreclosures are on lower-priced homes. The mean price of a home posted for foreclosure in the area during the first half of this year was $140,000.
I guess it stands to reason that since there were more high-priced homes purchased over the past few years at low, or even teaser, interest rates, and with less down, that the foreclosure rate for these high-priced homes should be going up. The overextended borrower will have the hardest time making the payments when variable rate mortgages reset, or when the economy turns and they lose their jobs.
To be continued … 😉