Number of Tennessee Mortgage Loans in Foreclosure Stage Dropping
As the housing market continues to shift, Tennessee mortgage foreclosures rose by 0.58 percent in the third quarter compared with the second fiscal quarter of this year. While a slight increase, that marks a 7.54 percent decrease compared to Q3 of 2005.
RealtyTrac released the numbers Monday in its quarterly U.S. Foreclosure Market Report. Nationally, the group reported there was a 17 percent increase in home foreclosures compared to the previous quarter.
In Tennessee, 7,502 properties entered some stage of foreclosure during the third quarter of 2006. The Volunteer state had the 12th highest foreclosure rate in the nation this quarter.
Nevada, Colorado and Florida posted the three highest foreclosure rates during the quarter, with Georgia, Michigan, Texas, Indiana, Utah, Ohio and Texas rounding out this undesirable top 10 for the third quarter of 2006.
The warning signs are clear.
“Higher mortgage rates and a general softening of the real estate market are the two key factors contributing to the 43 percent increase in foreclosure filings from the third quarter of 2005,” said RealtyTrac CEO James J. Saccacio.
“What our third quarter research appears to be showing is that the first wave of adjustable-rate mortgages is having a negative impact on the number of homes going into foreclosure. With the volume of these loans — more than $1 trillion of them due to adjust over the next 15 months — this is a trend that definitely bears watching.”
Arkansas, rated No. 16 in the nation, reported 2,696 properties entering a stage of foreclosure, and Mississippi, at No. 46, had 246 for the period, marking respective increases of 13 percent and 60 percent over the second quarter of 2006.
“While the overall number of foreclosures represents a return to more or less normal levels, there are pockets of the country being hit more severely,” Saccacio said.
“States with underlying economic issues, such as high unemployment levels or depreciating home prices, will continue to outpace the rest of the country in the total number and rates of foreclosure.”