Dallas-Fort worth commercial foreclosures increase by 40% in 2010

The last month has seen a rise in commercial foreclosure actions filed in the Dallas-Fort

Worth metro area by at least 40% compared to the same period last year. Still, even with this increase, analysts do not foresee any jump in property default postings to equal late 1980s level.

There are 3,029 recorded new foreclosure filings for commercial real properties in Dallas-Fort Worth area this month, considered to be the highest number in about 19 years. But this rate is comparatively lower than the 1988 figures, which saw a total of 8,000 commercial foreclosures in the same year.

According to Foreclosure Listing Service, the lower postings could be attributed to current stricter bank regulations and mortgage lending practices unlike in the latter part of the 1980s period. The commercial properties sector today is also free from any overbuilding problem that characterized the crash in the later part of the 80s and early 90s.

The effects of recession and credit crunch could be causing much of the difficulty in finding refinancing terms for commercial buildings and land. While the commercial market today is considered to be much larger than the previous years, still, the number of foreclosed industrial buildings has increased 51 percent for this year alone and land foreclosure filings have likewise increased by 49 percent, according to Foreclosure Listing Service.

But the largest increase in postings so far this year covered apartment buildings with 451 filings, up by 21 percent during the same period in 2009.

Analysts say that these figures could be expected to clear up once the economy and credit situation improves. In fact, some economic indicators are beginning to post positive figures with Texas taking the lead. But until the economy clears up, a rise in figures over the next year could be expected for commercial properties as more borrowers become delinquent with their rental payments. However, it is predicted that commercial foreclosures would not go anywhere near the figures of the late 80s crash. The total foreclosures activity this year is still expected to remain 59 percent lower than the levels posted 22 years ago, when the numbers hit an all-time record high.

Dallas-Fort worth commercial foreclosures increase by 40% in 2010

By: rudsontren

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