SHERMAN-DENISON, TX -- According to newly released data from CoreLogic, late mortgage payments have increased in Sherman-Denison since last summer yet we're still seeing less foreclosures. For this Mom's Everyday Home segment, we'll share what to expect when applying for a home loan and how to keep your home out of foreclosure once you've been approved.
Completed foreclosures are homes that have gone through the foreclosure process, usually due to late mortgage payments, and have been lost to the homeowner.
Figures recently released in the CoreLogic National Foreclosure Report show Texas was among the top five states in July with the highest number of completed foreclosures; a total of 57-thousand.
Realtor Bruce Stidham of Virginia Cook Realtors in Sherman says foreclosures are problematic for lenders as well as the homeowner.
"Foreclosure is the least way that you want to go because you lose all of your interest in the property. It goes to a sale, an auction on the courthouse steps and somebody has an opportunity to bid on that," he said.
It doesn't help that late mortgage payments have increased locally. As of June 2012, 5.05% of mortgage loans in Sherman-Denison were 90 days or more late compared to 4.88% last year.
That's why Jeff Robison of American Bank of Texas says lenders look for several factors in potential homeowners to determine your ability to pay back your mortgage loan.
"When we pull your credit report, it shows your past debt payments. It shows your past history of how you've paid your debt payments and that's usually a good indication of how you're going to repay your future debt payments," said Robison. "We're typically looking for a credit score above 600 with 650 being the average credit score."
Despite the rise in late payments, the Sherman-Denison area foreclosure rates have dropped compared to June of 2011 when the rate was 1.77% and foreclosures here are lower than the national foreclosure rate of 3.27%.
To keep these rates down, Robison says to go to creditreport.com each year to get a free copy of your credit report and manage your finances.
Still, the decline in local completed foreclosures is a good sign that the housing market is continuing to recover. Stidham said, "it certainly is a buyer market out there and buyers are looking and a lot of them are looking for the deal."
For more information, call the American Bank of Texas in Sherman at 903-893-7555, in Denison at 463-3510 and for lobby hours and other locations visit their website at http://www.abtexas.com.
American Bank of Texas
For lobby hours and other locations visit http://www.abtexas.com
For videos like this and more visit http://www.momseveryday.com/texoma.
*Air date 9-13-12