Tennessee foreclosures cut in half since 2014

Press Release

November 28, 2017 - Across the state of Tennessee, the number of homes in foreclosure has been cut in half since the end of 2014.

New research from the Tennessee Housing Development Agency looks at data from the second quarter of 2017 and finds a substantial reduction in the number of homes in foreclosure compared to three months prior. This is the first sizeable decline in more than a year.

"Throughout 2016, our state's foreclosure and delinquency numbers held relatively stable and even inched upward a bit in the first quarter of this year, so the foreclosure decline seen here is a real success," said THDA Research Analyst Joe Speer.

Statewide, the number of foreclosures was above 5,000 at the start of 2015, but foreclosures are now below 2,500, a decline of more than 50 percent in the past two and a half years. Tennessee reached its peak for foreclosures in January 2011 at well over 16,000.

Among the 51 Tennessee counties with more than 2,000 active home loans, Shelby County had the highest delinquency rate for home loan payments and tied with Cocke County for the highest foreclosure rate.

However, Shelby County mirrored the state with reduction in foreclosures of more than 50 percent, from more than 1,300 in Q4 2014 to just over 600 at the end of Q2 2017. Foreclosures in Shelby County peaked at well over 3,800 in January 2011.

"We're only seeing about one-sixth of the foreclosures in Shelby County that we saw at the height of the housing crisis, which was particularly devastating to Memphis homeowners," said Speer.

Looking at the total number of foreclosures, the 37042 ZIP Code of Clarksville in Montgomery County topped the list in the second quarter. Shelby County holds three of the state's top five ZIP Codes for foreclosures, with another straddling the line between Davidson and Rutherford counties.

Rank

ZIP Code

County

1.

37042

Montgomery

2.

38125

Shelby

3.

38127

Shelby

4.

37013

Davidson/Rutherford

5.

38128

Shelby

"THDA is working together with local and federal agencies to encourage a faster return to normal for neighborhoods where foreclosures remain high and the effects of housing crisis have been slowest to evaporate," said Speer.

Earlier this year, THDA introduced the HHF Down Payment Assistance program, which provides $15,000 in financial assistance to qualified homebuyers who are purchasing an existing home in a designated neighborhood with one of THDA's Great Choice Home Loans.

"We've been highly successful at boosting interest and investment in these neighborhoods, which is good news for everyone on the block," said THDA Executive Director Ralph M. Perrey. "We are successfully energizing the housing markets in the places that need it most."

THDA received $60 million from the U.S. Department of Treasury's Hardest Hit Fund to launch the HHF Down Payment Assistance program.

The full "Foreclosure Trends: Q2 2017" report is available on the Foreclosure Trends page in the Tennessee Housing Market section under Research & Planning at THDA.org.