Dallas Home Appraisals News and Information

Freddie Mac said today that they would begin offering leases to borrowers and tenants living in foreclosed properties.  That could certainly benefit not only those who would otherwise be displaced, in large part by perhaps giving them time to get back on their feet and eventually get a new loan, but should also be helpful in stemming the tide of foreclosed sales that is and will drive prices further down. 

On the other hand, a point made today in another blog questions the length of time it is taking banks to get foreclosures back on the market.  The slow rate could mean that someone who does buy today in a neighborhood with a number of foreclosures might get a great price, but as soon as the bank puts their foreclosed properties on the market that buyer's value will drop.  In neighborhoods with a high rate of foreclosures yet to be sold this will almost certainly occur.  Thus, it will take longer for residential values to hit bottom.

We are obviously already seeing the effect of foreclosures in some neighborhoods. Although Dallas/Fort Worth as a whole as seen far fewer defaults and a lesser drop in prices than other areas of the country, we are seeing a number of appraisals come in at between less and far less than the buyer paid or owes.  For those who are fairly secure this might only mean that they can't currently refinance; for others it is one step closer to the brink. 

The only bright spot we can offer those for whom values have dropped, is the good possibility that they will be able to make a case for lowering their property taxes. Small comfort, and none at all to those who will lose their homes.