Dec
Tennessee Foreclosure Trends: December 2010 How many/where/patterns Hulya Arik, Ph.D. March, 2011 According to the latest data from the RealtyTrac® US Foreclosure Market Report, number of properties with foreclosure filings in Tennessee did not change significantly from the previous month (November). In Tennessee, 2,602 properties had foreclosure filings1 in December 2010. This volume represents a 45 percent decline from the same month last year (December 2009). In December 2010, the number of Notice of Trustee Sales (NTS) and Real Estate Owned (REO) properties saw changes from their trends in the last three months. In September 2010, both the number of REO and NTS properties declined from August 2010. Indeed, the number of NTS reached its lowest level since 2007. A primary reason behind this substantial decline was likely due to the combined effect of a 90-day HUD imposed moratorium2 and a change to the state law3. In the past three months, declining trend in REOs continued. The foreclosure freeze initiated in October 2010 by some major lenders such as Bank of America also contributed to this declining trend in REOs. After the substantial initial decline of over 68 percent in August, NTS started to increase gradually until December. However, in December 2010, NTS declined by 18 percent from November 2010. The number of REO properties increased by 28 percent, the largest monthly increase since March 2010. It is possible that the initial impact of state law change started to subside and the lenders are adjusting to the new foreclosure procedure. The number of NTS properties declined by 18 percent from November 2010. Both REO and NTS increased from the same month last year (December 2009), by 44 percent and 47 percent, respectively.
1
For Tennessee, RealtyTrac’s report (http://relatytrac.com/trendcenter/) incorporates documents filed in two phases of foreclosure: Auction — Notice of Trustee Sale (NTS); and Real Estate Owned (REO) properties that have been foreclosed on and repurchased by a bank. 2
More information about the 90-day moratorium and the list of presidentially-declared federal disaster counties can be found at http://www.hud.gov/offices/hsg/sfh/nsc/disaster.cfm 3
Prior to the change in law, the foreclosure procedure in Tennessee required the lender to send a 30-day demand letter informing borrower about the exact amount to pay by the specified time. At the end of 30-day period, the lender must publish a notice of foreclosure sale at least three times in a newspaper. The first publication must be at least 20 days before the sale. The new bill requires, in addition to the existing requirements, that at least 60 days prior to the first publication of a notice of a foreclosure sale, the lender, trustee or other creditor must send a “notice of the right to foreclosure” to the borrower. The change is applicable to any initiated foreclosure on or after September 1, 2010. More information about TCA 35-5-117 can be found at: http://www.capitol.tn.gov/Bills/106/Bill/HB3588.pdf
Notice of Trustee Sales, REOs, and Total Number of Properties with Foreclosure Filings in Tennessee 2008-2010 6,000 5,000 4,000 3,000
2,000 1,000
Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10
0
NTS (Notice of Trustee Sales)
REO
TOTAL
Source: RealtyTrac
In terms of the total number of properties with foreclosure filings, the U.S. had a two percent decline from November 2010, and a 26 percent decline from December 2009. On average, there was one filing for every 504 housing units in the nation. Nevada had the nation’s highest foreclosure rate with one foreclosure filing for every 84 housing units. Tennessee had one foreclosure filing for every 1,069 housing units. The total foreclosure filings in four counties (Davidson, Rutherford, Shelby, and Williamson) accounted for 50 percent of the total foreclosure filings in the State in December 2010. Williamson County, with one filing for every 310 housing units, had the highest foreclosure rate in the State. The county with the highest number of properties with foreclosure filings in the State was Shelby, 713 properties. Williamson County followed Shelby with 204 properties with foreclosure filings. In Shelby County, the total volume of foreclosure filings decreased by seven percent from the previous month and declined by 59 percent from the same month last year (December 2009). In Williamson County, the total number of properties with foreclosure filings increased substantially from last month (November) and the same month last year (December 2009), 219 percent and 179 percent, respectively. The county with the third highest number of properties with foreclosure filings was Davidson (193), followed by Rutherford County (182). Forty-eight counties recorded declines in foreclosure filings from last month, while 38 counties had increases. Five counties did not see any change in the number of properties with foreclosure filings.
Total Number of Properties with Foreclosure Filings-Tennessee Counties- December 2010 December 2010 November 2010 December 2009 Percent Changes Total Number of Total Number of Total Number of % Change % Change Properties with 1/every X Ranking Properties with Properties with from from Foreclosure Housing Unit among all Foreclosure Foreclosure November December County Name Filings (Rate) counties* Filings Filings 2010 2009 Anderson Bedford Benton Bledsoe Blount Bradley Campbell Cannon Carroll Carter Cheatham Chester Claiborne Clay Cocke Coffee Crockett Cumberland Davidson Decatur Dekalb Dickson Dyer Fayette Fentress Franklin Gibson Giles Grainger Greene Grundy Hamblen Hamilton Hancock Hardeman Hardin Hawkins Haywood
21 15 3 2 20 32 11 4 5 4 29 6 10 0 8 14 7 12 193 4 2 19 13 4 8 13 21 9 6 17 3 25 99 0 10 3 40 9
1,641 1,176 3,030 2,734 2,677 1,310 1,770 1,434 2,734 6,916 550 1,144 1,522 -2,094 1,683 918 2,051 1,478 2,233 3,410 1,071 1,325 3,734 1,004 1,479 1,090 1,538 1,727 1,833 2,215 1,072 1,526 -1,151 4,550 659 954
44 26 75 70 69 30 50 32 71 87 2 24 37 91 59 46 11 57 36 47 81 20 31 78 15 35 23 41 48 52 63 22 39 91 25 82 5 13
14 16 2 3 26 31 12 5 9 5 30 1 11 1 16 13 7 8 334 1 3 13 14 6 4 10 14 10 5 18 2 47 105 0 6 6 10 5
15 25 4 3 58 53 25 2 17 13 21 4 12 0 15 26 8 16 439 6 5 24 19 17 1 16 24 19 12 35 2 39 226 0 10 7 23 6
50% -6% 50% -33% -23% 3% -8% -20% -44% -20% -3% 500% -9% -100% -50% 8% 0% 50% -42% 300% -33% 46% -7% -33% 100% 30% 50% -10% 20% -6% 50% -47% -6% -67% -50% 300% 80%
40% -40% -25% -33% -66% -40% -56% 100% -71% -69% 38% 50% -17% --47% -46% -13% -25% -56% -33% -60% -21% -32% -76% 700% -19% -13% -53% -50% -51% 50% -36% -56% -0% -57% 74% 50%
Total Number of Properties with Foreclosure Filings-Tennessee Counties- December 2010, Continued December 2010 November 2010 December 2009 Percent Changes Total Number of Total Number of Total Number of % Change % Change Properties with 1/every X Ranking Properties with Properties with from from Foreclosure Housing Unit among all Foreclosure Foreclosure November December County Name Filings (Rate) counties* Filings Filings 2010 2009 Henderson Henry Hickman Houston Humphreys Jackson Jefferson Johnson Knox Lake Lauderdale Lawrence Lewis Lincoln Loudon Macon Madison Marion Marshall Maury Mcminn Mcnairy Meigs Monroe Montgomery Moore Morgan Obion Overton Perry Pickett Polk Putnam Rhea Roane Robertson Rutherford Scott
4 7 9 0 5 1 14 4 159 1 7 8 5 10 11 1 53 6 5 31 15 6 4 22 56 0 2 8 1 1 1 3 14 13 13 25 182 1
3,055 2,402 1,046 -1,811 5,463 1,629 2,148 1,243 2,781 1,666 2,192 1,016 1,465 1,851 9,648 820 2,275 2,620 1,176 1,524 1,978 1,459 870 1,238 -4,091 1,876 9,690 4,369 3,130 2,802 2,235 1,077 1,920 1,028 570 9,427
76 66 18 91 51 85 43 60 29 73 45 62 16 34 53 89 7 65 68 27 38 56 33 8 28 91 79 54 90 80 77 72 64 21 55 17 3 88
5 6 9 2 6 0 22 7 107 2 6 7 3 4 15 6 41 7 17 51 13 10 0 9 43 1 5 7 1 0 0 5 15 12 44 36 135 4
10 12 18 5 6 0 31 6 240 4 8 20 6 12 33 5 84 4 18 132 25 15 11 29 112 2 5 10 3 2 1 7 26 12 27 36 213 2
-20% 17% 0% -100% -17% --36% -43% 49% -50% 17% 14% 67% 150% -27% -83% 29% -14% -71% -39% 15% -40% -144% 30% -100% -60% 14% 0% ---40% -7% 8% -70% -31% 35% -75%
-60% -42% -50% -100% -17% --55% -33% -34% -75% -13% -60% -17% -17% -67% -80% -37% 50% -72% -77% -40% -60% -64% -24% -50% -100% -60% -20% -67% -50% 0% -57% -46% 8% -52% -31% -15% -50%
Total Number of Properties with Foreclosure Filings-Tennessee Counties- December 2010, Continued December 2010 November 2010 December 2009 Percent Changes Total Number of Total Number of Total Number of % Change % Change Properties with 1/every X Ranking Properties with Properties with from from Foreclosure Housing Unit among all Foreclosure Foreclosure November December County Name Filings (Rate) counties* Filings Filings 2010 2009 Sequatchie Sevier Shelby Smith Stewart Sullivan Sumner Tipton Trousdale Unicoi Union Van Buren Warren Washington Wayne Weakley White Williamson Wilson Tennessee** U.S. Total
6 47 713 4 1 16 65 26 2 4 12 1 6 34 0 3 7 204 42 2,602 257,747
882 932 565 2,095 6,397 4,665 987 907 1,732 2,158 779 2,601 2,941 1,600 -5,280 1,538 310 1,065 1,069 504
9 12 4 58 86 83 14 10 49 61 6 67 74 42 91 84 40 1 19 29
10 52 764 5 5 30 64 16 0 2 4 0 11 24 2 7 6 64 42 2,594 262,339
12 92 1,737 6 4 39 179 37 2 1 10 1 14 39 3 8 5 73 59 4,760 349,519
-40% -10% -7% -20% -80% -47% 2% 63% -100% 200% --45% 42% -100% -57% 17% 219% 0% 0% -2%
-50% -49% -59% -33% -75% -59% -64% -30% 0% 300% 20% 0% -57% -13% -100% -63% 40% 179% -29% -45% -26%
*County ranking is based on the rate of foreclosure filings, a rank of one means the county had the highest ratio of foreclosure to housing units. **Tennessee ranking in the nation among other states, a rank of one means the state had the highest ratio of foreclosure to housing units. Source: RealtyTrac®
Tennessee Housing Development Agency 404 James Robertson Parkway, Suite 1200 Nashville, Tennessee 37243-0900
www.thda.org 615-815-2200
1
For Tennessee, RealtyTrac’s report (http://relatytrac.com/trendcenter/) incorporates documents filed in two phases of foreclosure: Auction — Notice of Trustee Sale (NTS); and Real Estate Owned (REO) properties that have been foreclosed on and repurchased by a bank. 2
More information about the 90-day moratorium and the list of presidentially-declared federal disaster counties can be found at http://www.hud.gov/offices/hsg/sfh/nsc/disaster.cfm 3
Prior to the change in law, the foreclosure procedure in Tennessee required the lender to send a 30-day demand letter informing borrower about the exact amount to pay by the specified time. At the end of 30-day period, the lender must publish a notice of foreclosure sale at least three times in a newspaper. The first publication must be at least 20 days before the sale. The new bill requires, in addition to the existing requirements, that at least 60 days prior to the first publication of a notice of a foreclosure sale, the lender, trustee or other creditor must send a “notice of the right to foreclosure” to the borrower. The change is applicable to any initiated foreclosure on or after September 1, 2010. More information about TCA 35-5-117 can be found at: http://www.capitol.tn.gov/Bills/106/Bill/HB3588.pdf
Notice of Trustee Sales, REOs, and Total Number of Properties with Foreclosure Filings in Tennessee 2008-2010 6,000 5,000 4,000 3,000
2,000 1,000
Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10
0
NTS (Notice of Trustee Sales)
REO
TOTAL
Source: RealtyTrac
In terms of the total number of properties with foreclosure filings, the U.S. had a two percent decline from November 2010, and a 26 percent decline from December 2009. On average, there was one filing for every 504 housing units in the nation. Nevada had the nation’s highest foreclosure rate with one foreclosure filing for every 84 housing units. Tennessee had one foreclosure filing for every 1,069 housing units. The total foreclosure filings in four counties (Davidson, Rutherford, Shelby, and Williamson) accounted for 50 percent of the total foreclosure filings in the State in December 2010. Williamson County, with one filing for every 310 housing units, had the highest foreclosure rate in the State. The county with the highest number of properties with foreclosure filings in the State was Shelby, 713 properties. Williamson County followed Shelby with 204 properties with foreclosure filings. In Shelby County, the total volume of foreclosure filings decreased by seven percent from the previous month and declined by 59 percent from the same month last year (December 2009). In Williamson County, the total number of properties with foreclosure filings increased substantially from last month (November) and the same month last year (December 2009), 219 percent and 179 percent, respectively. The county with the third highest number of properties with foreclosure filings was Davidson (193), followed by Rutherford County (182). Forty-eight counties recorded declines in foreclosure filings from last month, while 38 counties had increases. Five counties did not see any change in the number of properties with foreclosure filings.
Total Number of Properties with Foreclosure Filings-Tennessee Counties- December 2010 December 2010 November 2010 December 2009 Percent Changes Total Number of Total Number of Total Number of % Change % Change Properties with 1/every X Ranking Properties with Properties with from from Foreclosure Housing Unit among all Foreclosure Foreclosure November December County Name Filings (Rate) counties* Filings Filings 2010 2009 Anderson Bedford Benton Bledsoe Blount Bradley Campbell Cannon Carroll Carter Cheatham Chester Claiborne Clay Cocke Coffee Crockett Cumberland Davidson Decatur Dekalb Dickson Dyer Fayette Fentress Franklin Gibson Giles Grainger Greene Grundy Hamblen Hamilton Hancock Hardeman Hardin Hawkins Haywood
21 15 3 2 20 32 11 4 5 4 29 6 10 0 8 14 7 12 193 4 2 19 13 4 8 13 21 9 6 17 3 25 99 0 10 3 40 9
1,641 1,176 3,030 2,734 2,677 1,310 1,770 1,434 2,734 6,916 550 1,144 1,522 -2,094 1,683 918 2,051 1,478 2,233 3,410 1,071 1,325 3,734 1,004 1,479 1,090 1,538 1,727 1,833 2,215 1,072 1,526 -1,151 4,550 659 954
44 26 75 70 69 30 50 32 71 87 2 24 37 91 59 46 11 57 36 47 81 20 31 78 15 35 23 41 48 52 63 22 39 91 25 82 5 13
14 16 2 3 26 31 12 5 9 5 30 1 11 1 16 13 7 8 334 1 3 13 14 6 4 10 14 10 5 18 2 47 105 0 6 6 10 5
15 25 4 3 58 53 25 2 17 13 21 4 12 0 15 26 8 16 439 6 5 24 19 17 1 16 24 19 12 35 2 39 226 0 10 7 23 6
50% -6% 50% -33% -23% 3% -8% -20% -44% -20% -3% 500% -9% -100% -50% 8% 0% 50% -42% 300% -33% 46% -7% -33% 100% 30% 50% -10% 20% -6% 50% -47% -6% -67% -50% 300% 80%
40% -40% -25% -33% -66% -40% -56% 100% -71% -69% 38% 50% -17% --47% -46% -13% -25% -56% -33% -60% -21% -32% -76% 700% -19% -13% -53% -50% -51% 50% -36% -56% -0% -57% 74% 50%
Total Number of Properties with Foreclosure Filings-Tennessee Counties- December 2010, Continued December 2010 November 2010 December 2009 Percent Changes Total Number of Total Number of Total Number of % Change % Change Properties with 1/every X Ranking Properties with Properties with from from Foreclosure Housing Unit among all Foreclosure Foreclosure November December County Name Filings (Rate) counties* Filings Filings 2010 2009 Henderson Henry Hickman Houston Humphreys Jackson Jefferson Johnson Knox Lake Lauderdale Lawrence Lewis Lincoln Loudon Macon Madison Marion Marshall Maury Mcminn Mcnairy Meigs Monroe Montgomery Moore Morgan Obion Overton Perry Pickett Polk Putnam Rhea Roane Robertson Rutherford Scott
4 7 9 0 5 1 14 4 159 1 7 8 5 10 11 1 53 6 5 31 15 6 4 22 56 0 2 8 1 1 1 3 14 13 13 25 182 1
3,055 2,402 1,046 -1,811 5,463 1,629 2,148 1,243 2,781 1,666 2,192 1,016 1,465 1,851 9,648 820 2,275 2,620 1,176 1,524 1,978 1,459 870 1,238 -4,091 1,876 9,690 4,369 3,130 2,802 2,235 1,077 1,920 1,028 570 9,427
76 66 18 91 51 85 43 60 29 73 45 62 16 34 53 89 7 65 68 27 38 56 33 8 28 91 79 54 90 80 77 72 64 21 55 17 3 88
5 6 9 2 6 0 22 7 107 2 6 7 3 4 15 6 41 7 17 51 13 10 0 9 43 1 5 7 1 0 0 5 15 12 44 36 135 4
10 12 18 5 6 0 31 6 240 4 8 20 6 12 33 5 84 4 18 132 25 15 11 29 112 2 5 10 3 2 1 7 26 12 27 36 213 2
-20% 17% 0% -100% -17% --36% -43% 49% -50% 17% 14% 67% 150% -27% -83% 29% -14% -71% -39% 15% -40% -144% 30% -100% -60% 14% 0% ---40% -7% 8% -70% -31% 35% -75%
-60% -42% -50% -100% -17% --55% -33% -34% -75% -13% -60% -17% -17% -67% -80% -37% 50% -72% -77% -40% -60% -64% -24% -50% -100% -60% -20% -67% -50% 0% -57% -46% 8% -52% -31% -15% -50%
Total Number of Properties with Foreclosure Filings-Tennessee Counties- December 2010, Continued December 2010 November 2010 December 2009 Percent Changes Total Number of Total Number of Total Number of % Change % Change Properties with 1/every X Ranking Properties with Properties with from from Foreclosure Housing Unit among all Foreclosure Foreclosure November December County Name Filings (Rate) counties* Filings Filings 2010 2009 Sequatchie Sevier Shelby Smith Stewart Sullivan Sumner Tipton Trousdale Unicoi Union Van Buren Warren Washington Wayne Weakley White Williamson Wilson Tennessee** U.S. Total
6 47 713 4 1 16 65 26 2 4 12 1 6 34 0 3 7 204 42 2,602 257,747
882 932 565 2,095 6,397 4,665 987 907 1,732 2,158 779 2,601 2,941 1,600 -5,280 1,538 310 1,065 1,069 504
9 12 4 58 86 83 14 10 49 61 6 67 74 42 91 84 40 1 19 29
10 52 764 5 5 30 64 16 0 2 4 0 11 24 2 7 6 64 42 2,594 262,339
12 92 1,737 6 4 39 179 37 2 1 10 1 14 39 3 8 5 73 59 4,760 349,519
-40% -10% -7% -20% -80% -47% 2% 63% -100% 200% --45% 42% -100% -57% 17% 219% 0% 0% -2%
-50% -49% -59% -33% -75% -59% -64% -30% 0% 300% 20% 0% -57% -13% -100% -63% 40% 179% -29% -45% -26%
*County ranking is based on the rate of foreclosure filings, a rank of one means the county had the highest ratio of foreclosure to housing units. **Tennessee ranking in the nation among other states, a rank of one means the state had the highest ratio of foreclosure to housing units. Source: RealtyTrac®
Tennessee Housing Development Agency 404 James Robertson Parkway, Suite 1200 Nashville, Tennessee 37243-0900
www.thda.org 615-815-2200
