HOUSTON -- Houston-area foreclosures are up 34 percent for the first six months of this year, compared to the same time last year, according to a study by a group called RealtyTrac.
Mike Weaster, a Houstonian who specializes in foreclosure property sales, says he’s not surprised by the numbers and says he knows the reasons behind the increase.
“Job loss, people ran through their savings, down right to the economy and overextending themselves,” Weaster said. “In my opinion, you’re going to see a huge amount of homes come on the market in the next 12 to 24 months.”
Weaster says there’s a shadow inventory of homes ready for foreclosure that the banks haven’t released. He believes it’s because lenders didn't know how banking laws would change, so they held onto the troubled homes.
“There still is a tremendous amount of vacant homes that the lenders haven't foreclosed on yet that are just sitting, and so they're starting to realize they need to move those houses into the inventory so that we can start liquidating,” said Weaster.
Other experts say banks are deliberately avoiding foreclosing on homes to keep bad loans off their books.
Either way, it means there are deals out there for homebuyers. At a foreclosure auction conducted last weekend by a real estate auction company called REDC at the Houston Hilton, Houston homebuyers spent $7.8 million on 120 properties.
With even more home foreclosures expected over the next 12 to 24 months, it could be a good time to buy a home, but not necessarily to sell one.
