What does this
indicator measure?
This indicator measures the
number of foreclosure filings—court documents initiating the
foreclosure process— in the counties included in Dallas
Indicators. Data are provided by RealtyTrac, a
company that maintains the largest database in the country of
foreclosed properties.
Why is this indicator
important?
Mortgage foreclosures are a major
source of instability for a family. Foreclosure means the
loss of a home and severe damage to the borrower’s credit
rating. For many low-income families, qualifying for a home
loan was difficult; to then lose that home, accompanied by legal
paperwork, can be frustrating and traumatic. However,
mortgages are not foreclosed upon unless a family has failed to pay
the mortgage for several months in a row, so foreclosures are also
a sign of underlying instability. They can be precipitated by
the loss of a job, a divorce, or an unexpected emergency
expense. Unstable contract work, not uncommon in low-income
earners, can also trigger a foreclosure if work is largely
unavailable for several weeks or more and the main income earner is
able to obtain work hours only sporadically.
By tracking foreclosures, we can assess the
degree to which families in the area are experiencing the
financially and emotionally difficult loss of a home. High
foreclosure rates could indicate a need for more educational
programs in money management and homeownership, in addition to
financial assistance for low-income first-time
homeowners.
How are we
doing?
According to RealtyTrac:
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The Dallas area has some of the highest
foreclosure rates in the country, according to RealtyTrac.
The Dallas–Fort Worth area consistently ranks in the
top five metropolitan areas for number of foreclosure filings per
1,000 households.
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In Dallas County, more than 25,000 properties
entered the foreclosure process during the 12-month period from
April 2005 to March 2006.
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On average, about 2,090 properties entered
foreclosure each month in Dallas County during the same
period. This number translates to approximately 79
foreclosures per 10,000 households per month, or 1 foreclosure for
every 127 households per month.
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Month-to-month foreclosure filings have varied
significantly, from a low of 663 in May 2005 to a high of 3,785 in
October 2005.
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In Denton County, an average of 456 properties
entered foreclosure each month in the 9-month period from July 2005
to March 2006. This number translates to about 24
foreclosures per 10,000 households per month, or 1 foreclosure for
every 415 households per month.
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In Collin County, an average of 534 properties
entered foreclosure each month in the 9-month period from July 2005
to March 2006. This number translates to about 27
foreclosures per 10,000 households per month, or 1 foreclosure for
every 364 households per month.