Foreclosure Rates Rise Significantly in Memphis

Posted On: July 11, 2012 under

New data from real estate information firm CoreLogic shows foreclosure rates in Memphis have increased since last year, according to a report from CommercialAppeal.com. The foreclosure rate among mortgage loans in Memphis rose to 2.65 percent in April as compared to 2.59 in the same month in 2011. Overall, foreclosures in the city are up 35.4 percent over 2011. The mortgage delinquency rate also increased during April, which includes home loan payments that were late by 90 days or more, climbing from 8.98 percent from 8.8 percent in April 2011. The study shows foreclosure rates rise significantly in Memphis this year.

The spike in foreclosure rates may be attributed to TN banks reducing their foreclosure filings in 2011 while the “robo-signing” scandal was litigated. However, now that the lawsuit has been settled as of earlier this year, banks are free to proceed with new foreclosures and may be “making for lost time,” according to RealtyBizNews.com. The pace of residential sales has also picked up in Memphis, but prices are reportedly still being dragged down. Despite competitive bidding among investors, prices in the city have only increased 0.5 percent from 2011 to 2012.

The official 2010 Census shows that Memphis, which has a reputation for being one of the greatest music towns in America, may be losing its population. But despite its elevated foreclosure rate and excess of “shadow inventory,” which includes properties that are in foreclosure and have not been sold or homes that owners are delaying putting on the market until prices improve, Memphis has “a lot going for it.”

In general, investors and buyers should just try and be aware of the foreclosure and rental activity in the area where they plan to invest or live.

With rising foreclosure rates, it is important for homeowners across the state of TN to know that they do not have to go through the process alone and they may have options to avoid foreclosure. If you are a Tennessee resident facing foreclosure, contact a bankruptcy attorney in Chattanooga with Massey & Associates, P.C. to discuss your options and rights as a homeowner. Schedule a complimentary consultation by calling (423) 697-4529.

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