Houston foreclosures skyrocket in third quarter

Almost 12 percent of residential properties sold in Texas in the third quarter of this year were in some stage of foreclosure, according to a recent report from RealtyTrac.

There were 8,087 foreclosure sales across the state selling at an average price of $146,858, approximately 26 percent below the cost of non-foreclosed properties.

An earlier RealtyTrac analysis of foreclosure rates in major metro areas found that the Houston real estate market suffered a 26 percent increase in home foreclosures compared to this time last year.

Foreclosures increased in 65 percent of major cities recorded in the third quarter of this year with Houston's own rate jumping by over 11 percent from the previous quarter, affecting one of every 209 homes.

"The underlying problems that are causing homeowners to miss their mortgage payments - high unemployment, underemployment, toxic loans and negative equity - are continuing to plague most local housing markets," said James J. Saccacio, chief executive officer of RealtyTrac, adding that those historically high rates will continue until the underlying problems are solved.

The Houston Association of Realtors reported that foreclosures comprised 21.9 percent of all property sales in October, which the group said has been generally consistent with levels for most of the year.