D-FW home foreclosures near all-time low

Missed mortgage payments are still higher than a year ago in North Texas and the U.S.

Home foreclosure rates have so far remained low thanks to moratoriums and payment forbearance during the COVID-19 pandemic.(MEI-CHUN JAU / 186927)

The share of Dallas-Fort Worth homeowners with late mortgage payments is up from a year ago.

But the number of foreclosures is negligible.

That’s because home foreclosure moratoriums and other programs put in place during the pandemic are keeping forced home sales near an all-time low.

In March, 5.5% of D-FW homeowners with a loan had missed at least one payment. That’s up from about 3.6% a year earlier, according to the latest report from CoreLogic.

Nationwide, 4.9% of mortgage holders were behind on at least one loan payment — an improvement from recent months.

“Many forces came together in March to yield the largest one-month improvement in the overall delinquency rate since the pandemic started,” Frank Nothaft, chief economist at CoreLogic, said in the report. “In addition to continued government support, including stimulus payments and mortgage forbearance programs, the U.S. economy added 770,000 jobs in March, the largest increase since August of 2020.”

Houston had one of the highest mortgage delinquency rates among the major cities CoreLogic tracks. In March, 7.3% of Houston mortgage holders had missed at least one home payment.

CoreLogic found that 0.3% of U.S. home mortgages were in foreclosure in March.

In the D-FW area, only 0.1% of home loans were in foreclosure — down from 0.2% in March 2020.

Some analysts are warning that home foreclosures could rise later this year as government-backed relief programs end.

But Texas real estate economist James Gaines doesn’t expect a significant increase because of recent increases in home values.

“There are a number of people who are waiting for a bunch of foreclosures to come through later this year,” Gaines said. “But why would you let your house go into foreclosure if you could sell it for a profit?”


8:02 AM on Jun 9, 2021

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