Tennessee Foreclosure Activity Slowed Down in October

November 28th, 2008 by

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Tennessee foreclosures in October 2008 went down by 2.6 percent to 491 homes compared to 504 in October 2007. However, the total number of distressed homes for 2008 is higher by 8.9 percent than in 2007.

According to the Chandler Reports, a real estate information provider, the 491 figures in October 2008 is higher than the 451 figures of September. Also, the impact of foreclosures on home market values in Tennessee remains strong.

In Shelby County, there were 5,328 filings as of October 31, 2008, representing an increased of 8.6 percent from a total of 4,906 in October 2007. Out of the 491 distressed homes, 453 were single-family homes, twelve were detached homes under Planned Unit Development and eight were condominiums.

Some areas in Shelby County with high foreclosure rates are:

Frayser (45)
Oakhaven/Parkway Village (43)
Southeast Memphis (35)
Raleigh (33)
Westwood (32)

Frayser Community Development Corp. executive director Steve Lockwood expressed his disappointment that Frayser saw an increased in foreclosure filings for 2008.

Among 5,328 distressed homes in Shelby County, 2,368 or 44 percent of them have been resold. However, these homes were sold at $31,000 lower than the amount originally paid for by its previous owners.

Data from Chandler Reports showed that the length of ownership for foreclosed properties in 2008 was, on average, 7,7 years. These figures undermine the notion that subprime borrowing is the core player in the housing market crisis.

Meanwhile, distressed homes with conventional fixed-rate and adjustable-rate mortgages lead with 94 filings each in Shelby County in October. Other mortgages with filings are 56 fixed-rate mortgages of the Federal Housing Administration and 15 fixed-rate mortgages of Veterans Administration.

Works Inc. housing counsellor Rhonda Rucker is optimistic that the current crisis will be under control soon. She suggests improving homeowners’ credit to control the foreclosure crisis.

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