Foreclosures in the Austin area are on the rise. In fact, they are up by 72% over last year.  The reason?  Bad loans and the poor economy for the most part.  Many people who bought a few years ago bought using what some call NINJA loans – no job, no income – no problem, we’ll give you money type of loans.  

Many of these loans were 100% or more of the purchase price.  With the economy having gone soft, some people have lost jobs.  Others have gotten behind on payments for whatever reason.  

Home values have also declined or remained flat in some areas.  Even if values have stayed the same, if an owner tries to sell, they will still have to take money to the closing table.  Some have chosen just to walk away and give the home back to the bank and some have simply had no choice.

The Austin economy, although not very healthy, is still much better than many cities across the country.  Our area’s unemployment is 7.2%.  Other cities aren’t so lucky.  Unemployment rates are much higher and the rate of foreclosures has been much greater.  Unemployment rates for other cities:  Phoenix – almost 9%, Cincinnati – over 10%, San Jose – 12% and Detroit is at almost 18% (July, 2009 figures).  The rate of foreclosures in many of these areas is much higher than the Austin area.

With many people looking for deals, property search features line the Austin home search feature on my Austin real estate website have added a button to check that allows buyers to search just foreclosures.
Also, if you are a seller and want to find a way to see your home quickly, click HERE.