Stream of Texas foreclosures to continue in coming months

A number of new Houston foreclosures may enter the market in the coming months, adding to the properties already on the market. But as time moves forward the number of new REO properties should fall, according to the mortgage firm Lender Processing Services.

According to the report, a total of 9.3 percent of loans in the country were delinquent at the end of October and more than 13 percent were non-current - meaning that the homeowners had missed at least one payment. In addition, 3.9 percent of properties have been referred to a loan attorney for a foreclosure sale.

When compared to the national figures, the Texas real estate market has mixed results. That state's delinquency rate is higher than the national average, while the foreclosure inventory and overall non-current loans are lower - meaning that once the current wave of foreclosures is gone, the market may return to normal levels.

Next to many other cities, the Houston real estate market is relatively unencumbered by distressed properties. According to CoreLogic, the local market had a 7.3-month supply of REOs, which is far lower than the more than 33 months available in Miami.