As a Texan, I’m used to pretty much everything being bigger here, from the size of our trucks to the smiles on our faces.  It was nevertheless disappointing to read in a report from RealtyTrac that Texas is now making some big news in a not-so-great way:  it’s in the top 10 states for foreclosure filings.   Foreclosures were up 6% in July from the month prior—and up 16% from the same period the previous year.

But according to Mark Dotzour, director and chief economist of the Real Estate Center at Texas A&M, not all is lost in the Lone Star State.  In fact, he believes that now is the time to buy or build a home here, with one significant caveat:  that “the federal government doesn’t cause further damage to the U.S. economy with higher levels of intervention in healthcare, taxation, cap and trade and rewriting accounting and legal standards.”

Now generally I’m a pretty optimistic guy with high hopes for the future.  In fact, I’m one of those folks who encourages people to turn off their televisions, ignore the doom and gloom and go out there and do some economic stimulating all on their own.  I’m a cheerleader for home ownership and believe that the recent downturn can end once the public starts investing in real estate—and their futures—once again.   And yes, I’m going to keep leading the charge for transparency in mortgage lending as a way of turning this industry around.

But I’ve got to tell you that Doutzour’s warning gave me pause.  You see, in the midst of raucous town hall meetings, the skyrocketing national debt, and the government being involved in private business a little too much for my comfort (regardless of which party is in office), I’m just not sure that “further damage” isn’t at least somewhat inevitable.

And this is one time that this Texan actually hopes that he’s wrong.