Dallas Home Appraisals News and Information

Reports released today show that 7% of homeowners with mortgages were at least 30 days late on their payments in February, an increase of more than 50% over this time last year.  Additionally, 39.8% of subprime borrowers were more than 30 days behind, also up significantly from the same period last year.

According to Dann Adams, president of U.S. Information Systems for Equifax, the increase in delinquencies indicates a potential rise in foreclosures, short sales and home price declines as homeowners continue to default and banks sell the repossessed homes at bargain prices.

The data released by Equifax also shows the impact of increasing unemployment.  As more people lose their jobs their reliance on credit cards increases, even as lenders close accounts and attempt to severely restrict access to credit.  Credit limits are falling as lenders try to minimize their losses, leaving borrowers with higher debt to credit ratios because their debt remains the same as their limits decrease. 

This trend in turn will continue to make it more difficult for homeowners to qualify for loans and refi's.  The experts recommend that if you must carry balances, you should spread them over several cards to keep the debt to credit ratio of each card low.  Interestingly, and almost perversely, paying off and closing accounts can actually reduce your credit score.

If you have questions about how your current credit/debt levels might affect a first mortgage or refinance application, contact Blue Star Appraisals Inc. to get a referral to a loan professional who can help you understand how your debt to credit ratio affects your all-important credit score and how to possibly restructure your debt or otherwise make yourself a more attractive risk to lenders.