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Foreclosure Help: Why Didn’t the Housing Bubble Mess With Texas?

Published: Thursday, 30 April 2009
Written by Administrator

Why Didn’t the Housing Bubble Mess With Texas?

 

Dallas’s Case-Shiller numbers have stayed flat since 2000. See the map.

Why didn’t Texas, unlike other Sunbelt states, see a housing bubble?

In Dallas, home prices have stayed flat since 2000 and they fell just 4.5% in February from a year ago, according to the Standard & Poor’s/Case-Shiller index figures released Tuesday. That compares with an 18.6% decline nationwide over the same period. Foreclosure rates in the state have remained low.

The Rortybomb blog argues that the state’s strict lending laws had something to do with it. Texas has a ban on prepayment penalties, it also doesn’t allow balloon loans or negative amortizing loans where the loan payment is less than the interest on the loan.

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