How Texas escaped the real estate bust
How Texas escaped the real estate bust
Texas REALTORS® credited for helping state avoid real estate meltdown
Due to the proactive efforts of Texas REALTOR®, our state did not suffer the significant erosion in real estate values or high foreclosure rates experienced in many other states (Why you should hug a REALTOR®, by Rick Casey, Houston Chronicle, April 5, 2010). In the late 1990s, when the Texas Legislature was considering allowing home-equity loans, Texas REALTORS® were concerned that if people borrowed too much against their homes and the economy went south, foreclosures would soar and home prices would sink. Texas REALTORS® pushed for protections for Texas homeowners, the most important of which allows homeowners to borrow a maximum of 80% of the appraised value of their homes. Many states that allow homeowners to borrow 100% or more of the value of their homes are the very states facing the highest foreclosure rates and largest drops in real estate values.