The Great Recession is now 10 years in the past and some parts of the country are recovering better than others. Although the Dallas-Fort Worth area didn’t have as high of an unemployment rate during the recession, it did have one of the highest foreclosure rates of any major metro areas in 2005. Foreclosures have been on a steady downward trend ever since. They recently reached historic lows, but analysts suggest that foreclosure rates could be climbing back up. 

According to Attom Data (formerly known as RealtyTrac), as reported in the Fort Worth Star-Telegram, foreclosures were at a high point of 8,748 in January 2006. Foreclosures continued at a rate of 7,000 to 8,000 per month throughout the recession.

Dallas-Fort Worth never had as many foreclosures as nearby Southwest states like Arizona and Nevada. But distressed properties made up a larger percentage of housing on the market a few years ago, which created excellent opportunities for real estate investors.

In September 2017, the foreclosure rate in North Texas was at a record low, with only 775 filed. But the number of foreclosures were both progressively higher in October and November, with 885 and 969, respectively. Are the October and November statistics a sign that the foreclosure rate is on the rise in North Texas? 

Foreclosures are always a risk in any economy. And there are plenty of signs that the Dallas-Fort Worth housing market is straining homeowners. Property taxes dramatically increased in both 2016 and 2017. In Tarrant County, property taxes increased by 14 percent, and again in 2017 by 10.6 percent.  Property tax increases have been such a big problem for Texas residents that the state legislature recently enacted a bill allowing property owners to protest tax hikes.

Rising home prices in Dallas-Fort Worth also work to the advantage of strapped homeowners. Because property values are dramatically increasing, it means that fewer homeowners are upside-down on their mortgages. People who are struggling to make their mortgage payments are in the positive position of being able to sell their house, often for more than they owe for it.

The housing market in the area is so tight that there’s a lot of demand for even distressed properties that need a lot of work. Most homeowners who can’t afford to keep up with their payments can find alternate sources of relief from the burden of high payments.

Lenders have also worked with homeowners to keep the foreclosure rate low. Many people have found ways to avoid foreclosure by arranging a short sale instead. According to CoreLogic, the nationwide average for 90-day delinquencies is at 1.9 percent, the lowest point in a decade.

Both Atlanta and Houston have higher foreclosure rates than Dallas-Fort Worth However, foreclosures are still at relatively low levels all over the nation. As long as unemployment levels also remain low, the risk of foreclosure should not significantly increase.