by JEN BIUNDO
After two months of decline, foreclosures in Hays County have shot back up to nearly a record high, possibly influenced by the end of the federal tax credit for first-time homebuyers.
According to records released this week by the Hays County Clerk’s Office, 155 properties are scheduled to face foreclosure auction next month on the steps of the Hays County Courthouse, a whopping 61 percent increase from the 96 properties listed for the June auction.
The most recent numbers represent a three percent increase from the 150 properties listed for last July’s auction, and are the third highest listing the county has seen to date.
Foreclosures in Hays County rose to record highs in early 2009 as the country faced a nationwide collapse of the housing market, and they continue to rise.
In 2008, the county recorded an average of 80 foreclosures each month, a number that had remained steady for the previous five years. In 2009, that abruptly climbed 58 percent to an average of 125 foreclosure listings per month, and in 2010, the average stands at 136 listings per month.
Despite the high numbers of foreclosures and a slowdown in sales, home values have remained roughly constant in the county, realtors say.
Local realtors said that the dip in May and June may have been partially due to increasing numbers of short sales, in which a bank permits a homeowner to sell their property for less than the total amount of the loan, throwing a lifeline to borrowers who are underwater on their mortgages.
Homeowners on the brink of foreclosure and trying to offload their home likely benefited from the $8,000 federal tax credit for first-time homebuyers. The tax credit applied to purchases in which a sales contract was signed by April 30 and the home purchase is completed by June 30.
A bank can begin foreclosure proceedings when a property owner falls three months behind on their mortgage payment.
