The Dirty Little Secret Behind the Montrose Foreclosure Hump

Tremont Tower in Montrose

Twenty-five Montrose homes were foreclosed on this month, reports the Houston Business Journal. That’s a huge increase from last July.

[Mike] Weaster, a Realtor with Century 21 Excel Realty, currently has about 45 foreclosed homes in the Montrose area listed for sale.

“There’s been a big time increase — I’ve never seen anything like this,” he says. “It’s something that is so unique to Houston that I can’t even tell my buyers what’s happening.”

What could be the problem? In Houston overall, there was no increase in mortgage foreclosures: 2,090 last July; 2,085 this month. So what is it with Montrose?

Well, here’s a clue:

Many of the foreclosed homes in Montrose have never even been occupied by the homeowner and were instead purchased by investors who apparently weren’t able to sell them, according to Weaster, who says he comes across first-payment defaults in Montrose at least once a week.

Weaster believes speculation investors and bad loans have taken a toll on the trendy neighborhood.

Still stumped? What if you learned that twelve of this month’s foreclosures alone were at the same address? And what if you discovered that the building at that address was the Tremont Tower?

Yeah, that Tremont Tower, at Yupon and Westheimer. The one featured in an article called “Contractors from Hell” in People magazine in 2005. And in the Houston Press. The one the Lemon Lady used to picket.

Does that help explain?