The Dallas Morning News reports from Texas. "Dallas-Fort Worth home foreclosure postings are still growing – fueled by higher payments on adjustable-rate loans and rising consumer debt. The latest statistics show that pending foreclosures in Dallas County are 12 percent higher than a year ago and foreclosure postings are up 16 percent in Tarrant County."

"The 1,940 homes in Dallas County and 1,274 Tarrant County homes threatened with foreclosure are approaching record highs, said George Roddy, president of Foreclosure Listing Service. 'This is getting serious,' Mr. Roddy said. 'This level is getting very close to the all-time records set in 1989.'"

"It's often because of poor consumer choices, credit analysts say. 'Some of them got into more house than they can afford,' said Gail Cunningham with Consumer Credit Counseling Service of Greater Dallas."

"While many analysts are predicting that the inflated housing market will have a 'soft landing,' Ms. Cunningham said she isn't as optimistic. 'In the trenches where the real folks are, they are feeling the pinch,' she said."

"Mr. Roddy said he's noticed some subtle changes in the types of loans facing foreclosure. 'I'm seeing a little pickup in home equity loans, but adjustable-rate loans still lead the pack,' he said."

The Star Telegram. "The last time Tarrant County saw this many foreclosure postings, it was the late 1980s and the real-estate market had crashed."

"This month, 1,274 Tarrant County homes were posted for foreclosure. What was the previous record? In November, 1,222 homes were posted. Is 1,274 a lot? Consider this: In the 12 months ending with November, an average of 2,350 homes were sold in Fort Worth, Arlington and Northeast Tarrant County combined, according to the Real Estate Center at Texas A&M University."

"How do foreclosures affect home values? As homes are sold back to the lender, they are put back on the market. That means more competition in a market that has already seen slower sales the past four months."

Inside Texas Business. "Anyone who owns a home knows about the residential real estate bubble that is on the brink of deflation around the country. When this so-called bubble is talked about, it generally refers to the rest of the nation. The bubble has not manifested itself in Collin County or throughout most parts of Texas."

"'As prices have inflated, the real estate market ballooned up and now air is coming out of the bubble. We did not blow up,' said (broker) Betty Magee."

"'The other markets are overvalued and DFW is not. The appreciation has been minimal and there is a swing of investors and relocations moving to North Texas,' said Daniel Frank, president of DFW Real Estate Group. 'There should be a surge in housing this year, along with refinance due to adjustable rate mortgages that are now adjusting.'"

"'The national news pushes it [the bubble] so much. We have not escalated in value so you are going to have to stay put for a while,' Magee said."

"The Dallas Morning News reported a 5 percent decrease in housing sales last week. 'The softening was due to lending guidelines changing, over-building by the builders, eagerness to not hold inventory coming into Christmas and too much overall inventory. Please note, 2007 should be an increase year and I really feel that the bubble is for other markets, not ours,' Frank said."

"Lenders reported 27,649 single-family residential foreclosures in 2005 in Texas, according to Dr. James Gaines, research economist with the Real Estate Center. This number reflects only the sales in which lenders reacquired properties. The actual number is greater."

"In November of 2006, foreclosures for Dallas increased by 67 percent, according to RealtyTrac’s report. The Dallas area, consisting of eight counties, reported 4,653 new foreclosure filings during the month, a foreclosure rate of one new foreclosure filing for every 286 households, 3.4 times the national average. Dallas returned to the top spot, a place held for almost a year."

"Collin County reported 767 new foreclosures in November, a 114 percent increase from the 359 foreclosures reported the previous month."

"'The foreclosures, in my opinion, are mostly due to 100 percent financing to buyers that should not have purchased. There were some builders lending 100 percent, through their JV’ed mortgage companies, plus rolling in their closing costs and escrowing ONLY based upon the unimproved,' Frank said."

"'You will see pockets of foreclosures in certain new home neighborhoods and the builder in partnership with the lender had much to do with it,' he said. 'These buyers were in serious trouble when the taxes on their house went to improved and there was a shortfall in their escrow. Many of these folks could not refi or pay the shortfall and the effects have been disastrous. We get calls from these folks daily. In addition, 100 percent to buyers with 500 credit scores should have never been done.'"

"'The biggest effects that we see in Collin County is people relocating to the area cannot get rid of their homes in other states,' said David Mathews, VP for Darling Homes. 'We’ve sold a lot of homes and when it comes down to the closing they are still struggling to get rid of the home they left.'"

"Sales and traffic are down significantly in the Dallas/Fort Worth area. Cancellations have edged up, especially for lower priced homes. Homebuilders and real estate agents noted increased uncertainty and uneasiness among buyers that they blamed partly on reports of weakness in other parts of the country. Builders have pulled back on starts and increased buyer incentives in an attempt to manage rising inventories."

"'I think that the builders hurt us more here because we have more space. They can go further north and buy cheap land. That is our biggest problem. We have too much land in Texas,' Magee said."

"'We have felt that some of the national home builders have used Texas as a place to get their unit volume and are not necessarily that focused on profit because they are making such great profits in other markets,' Matthews said."

"Rural land prices in Collin County and throughout Texas are at a record highs. In 2005, land prices set another record at $1,483 per acre. Land prices are up 16 percent from 2004 and 76 percent over 2000 land prices."