Tennessee Foreclosure Trends: Q3-2010
Tennessee Foreclosure Trends: Q3-2010 How many/where/patterns Hulya Arik, Ph.D. October, 2010
According to the latest data from the RealtyTrac® US Foreclosure Market Report, Tennessee had 10,346 properties with foreclosure filings1 in the third quarter of 2010, this volume represents a 13 percent decline from the previous quarter (Q2_10), and a five percent decline from the same quarter last year (Q3_09)2. In terms of the total number of properties with foreclosure filings, the U.S. had a four percent increase from Q2_10, and a one percent decline from the third quarter of 2009. On average, there was one filing for every 139 housing units in the nation. Nevada ranked number one in the nation with one foreclosure filing for every 29 housing units. Tennessee had one foreclosure filing for every 267 housing units, putting the State in 28th place in the nation.
1
RealtyTrac’s report (http://relatytrac.com/trendcenter/) incorporates documents filed in two phases of foreclosure: Notice of Trustee Sale (NTS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). 2
A primary reason behind this substantial decline from the previous quarter and from last year is likely due to the combined effect of a 90-day HUD imposed moratorium on the foreclosure of FHA insured properties in 45-presidentially-declared federal disaster counties affected by May 2010 flood and the passage of HB3588 amending TCA 35-5-117, which resulted in an increased timeframe for processing foreclosures in the State. 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 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
In the third quarter of 2010, there were 4,364 properties with Notice of Trustee Sales (NTS), a 21.6 percent decline from the last quarter and an eight percent decline from the same quarter last year (Q3_09). There were 5,982 properties repossessed by the lender (REOs) in Q3_10. The number of REOs declined by six percent from the second quarter of 2010 and three percent from the same quarter last year (Q3_09). Notice of Trustee Sales, REOs, and Total Number of Properties with Foreclosure Filings in Tennessee 2008-2010 12,000
11,000 10,000
9,000 8,000
7,000 6,000
5,000
NTS (Notice of Trustee Sales)
REO
Q3-10
Q2-10
Q1-10
Q4_09
Q3_09
Q2_09
Q1-09
Q4_08
Q3_08
Q2_08
Q1-08
4,000
TOTAL
The total foreclosure filings in five counties (Davidson, Hamilton, Knox, Rutherford and Shelby) accounted for 55 percent of the total foreclosure filings in the State in Q3_10. Shelby County, with one filing for every 140 housing units, had the highest foreclosure rate in the State. The County also had the highest number of properties with foreclosure filings in the State (2,868). In Shelby County, the total foreclosure filings decreased by 23 percent from the last quarter and by 18 percent from the same quarter last year (Q3_09). The county with the second highest foreclosure total was Davidson (1,066), followed by Knox County (702), Hamilton County (576) and Rutherford County (490). Compared to the second quarter of 2010, the total number of properties with foreclosure filings declined in the third quarter of 2010 in Davidson, Rutherford, Knox, and Hamilton counties by eight percent, six percent, four percent, and three percent, respectively. Davidson, and Hamilton counties had declines from the same quarter last year (the third quarter of 2009) – eight percent and one percent, respectively. Knox and Rutherford counties had increases from the third quarter of 2009 - nine percent and two percent, respectively.
In 65 counties, the total number of properties with foreclosure filings declined from the previous quarter, while in 25 counties, the number increased. Five counties did not have any change.
County Name 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
Total Number of Properties with Foreclosure Filings-Tennessee Counties- Q3 2010 Q3 2010 Q2 2010 Q3 2009 Percent Changes Total Number of Total Number of Total Number of Properties with 1/every X Ranking Properties with Properties with Foreclosure Housing among all Foreclosure Foreclosure % Change % Change Filings Unit (Rate) counties Filings Filings from Q2-10 from Q3-09 77 46 24 4 135 130 39 19 29 40 97 11 32 2 45 52 19 46 1,066 7 21 84 39 25 15 41 83 32 27 86 13 103 576 2 16 21 57 17
445 379 375 1,353 393 319 491 300 468 685 163 618 469 2,084 368 448 335 529 266 966 423 240 440 587 531 464 274 430 379 359 506 258 261 1,704 713 645 458 503
49 37 36 90 42 26 59 23 56 78 3 74 57 94 35 50 30 64 17 86 45 10 47 69 65 55 19 46 38 34 62 15 16 93 80 75 53 60
91 76 14 8 126 182 57 16 43 33 71 25 43 3 43 67 19 43 1,159 7 10 86 49 33 27 36 76 33 33 78 19 117 595 4 58 34 57 18
85 71 9 11 120 134 59 21 41 24 46 19 25 1 43 67 11 44 1,156 8 24 81 58 32 11 56 67 36 23 74 14 99 584 2 29 31 51 23
-15% -39% 71% -50% 7% -29% -32% 19% -33% 21% 37% -56% -26% -33% 5% -22% 0% 7% -8% 0% 110% -2% -20% -24% -44% 14% 9% -3% -18% 10% -32% -12% -3% -50% -72% -38% 0% -6%
-9% -35% 167% -64% 13% -3% -34% -10% -29% 67% 111% -42% 28% 100% 5% -22% 73% 5% -8% -13% -13% 4% -33% -22% 36% -27% 24% -11% 17% 16% -7% 4% -1% 0% -45% -32% 12% -26%
Total Number of Properties with Foreclosure Filings-Tennessee Counties- Q3 2010, Continued Q3 2010 Q2 2010 Q3 2009 Percent Changes Total Number of Total Number of Total Number of Properties with 1/every X Ranking Properties with Properties with Foreclosure Housing among all Foreclosure Foreclosure % Change % Change County Name Filings Unit (Rate) counties Filings Filings from Q2-10 from Q3-09 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
18 28 38 5 15 9 84 14 702 0 30 42 13 32 87 34 128 14 65 200 70 36 19 76 211 2 12 33 6 5 3 18 79 50 72 136 490 7
672 595 245 817 599 601 269 608 280 -386 414 387 454 231 279 337 964 199 180 324 327 302 249 324 1,475 676 452 1,601 864 1,034 461 389 276 344 187 208 1,333
76 70 12 83 71 72 18 73 22 95 39 44 40 52 9 21 31 85 7 5 28 29 25 13 27 91 77 51 92 84 87 54 41 20 33 6 8 89
32 30 59 6 17 8 81 13 731 4 67 50 14 39 123 28 173 29 72 210 83 41 26 70 202 4 17 37 8 5 2 26 69 45 56 145 524 3
20 26 45 10 22 5 78 9 647 6 45 34 13 30 83 11 153 25 47 186 91 15 20 57 179 3 12 34 18 4 1 26 50 57 81 129 480 4
-44% -7% -36% -17% -12% 13% 4% 8% -4% -100% -55% -16% -7% -18% -29% 21% -26% -52% -10% -5% -16% -12% -27% 9% 4% -50% -29% -11% -25% 0% 50% -31% 14% 11% 29% -6% -6% 133%
-10% 8% -16% -50% -32% 80% 8% 56% 9% -100% -33% 24% 0% 7% 5% 209% -16% -44% 38% 8% -23% 140% -5% 33% 18% -33% 0% -3% -67% 25% 200% -31% 58% -12% -11% 5% 2% 75%
Total Number of Properties with Foreclosure Filings-Tennessee Counties- Q3 2010, Continued Q3 2010 Q2 2010 Q3 2009 Percent Changes Total Number of Total Number of Total Number of Properties with 1/every X Ranking Properties with Properties with Foreclosure Housing among all Foreclosure Foreclosure % Change % Change County Name Filings Unit (Rate) counties* Filings Filings from Q2-10 from Q3-09 Sequatchie Sevier Shelby Smith Stewart Sullivan Sumner Tipton Trousdale Unicoi Union Van Buren Warren Washington Wayne Weakley White Williamson Wilson Tennessee** United States
29 299 2,868 17 6 137 260 91 6 11 13 5 32 121 14 20 27 184 145 10,346 930,437
180 145 140 487 1,055 541 244 257 571 780 709 515 545 442 505 787 395 342 301 267 139
4 2 1 58 88 66 11 14 68 81 79 63 67 48 61 82 43 32 24 28
33 324 3,708 21 9 108 279 82 7 21 28 5 47 124 4 21 30 274 181 11,944 895,521
28 328 3,519 17 12 64 275 60 9 4 15 8 42 106 9 19 25 185 117 10,888 937,840
-12% -8% -23% -19% -33% 27% -7% 11% -14% -48% -54% 0% -32% -2% 250% -5% -10% -33% -20% -13% 4%
*County ranking is based on the rate of foreclosure filings, a rank of one means the county had the highest retio of foreclosure to housing units. **Tennessee ranking in the nation among other states, a rank of one means the state had the highest retio 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
4% -9% -18% 0% -50% 114% -5% 52% -33% 175% -13% -38% -24% 14% 56% 5% 8% -1% 24% -5% -1%
According to the latest data from the RealtyTrac® US Foreclosure Market Report, Tennessee had 10,346 properties with foreclosure filings1 in the third quarter of 2010, this volume represents a 13 percent decline from the previous quarter (Q2_10), and a five percent decline from the same quarter last year (Q3_09)2. In terms of the total number of properties with foreclosure filings, the U.S. had a four percent increase from Q2_10, and a one percent decline from the third quarter of 2009. On average, there was one filing for every 139 housing units in the nation. Nevada ranked number one in the nation with one foreclosure filing for every 29 housing units. Tennessee had one foreclosure filing for every 267 housing units, putting the State in 28th place in the nation.
1
RealtyTrac’s report (http://relatytrac.com/trendcenter/) incorporates documents filed in two phases of foreclosure: Notice of Trustee Sale (NTS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). 2
A primary reason behind this substantial decline from the previous quarter and from last year is likely due to the combined effect of a 90-day HUD imposed moratorium on the foreclosure of FHA insured properties in 45-presidentially-declared federal disaster counties affected by May 2010 flood and the passage of HB3588 amending TCA 35-5-117, which resulted in an increased timeframe for processing foreclosures in the State. 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 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
In the third quarter of 2010, there were 4,364 properties with Notice of Trustee Sales (NTS), a 21.6 percent decline from the last quarter and an eight percent decline from the same quarter last year (Q3_09). There were 5,982 properties repossessed by the lender (REOs) in Q3_10. The number of REOs declined by six percent from the second quarter of 2010 and three percent from the same quarter last year (Q3_09). Notice of Trustee Sales, REOs, and Total Number of Properties with Foreclosure Filings in Tennessee 2008-2010 12,000
11,000 10,000
9,000 8,000
7,000 6,000
5,000
NTS (Notice of Trustee Sales)
REO
Q3-10
Q2-10
Q1-10
Q4_09
Q3_09
Q2_09
Q1-09
Q4_08
Q3_08
Q2_08
Q1-08
4,000
TOTAL
The total foreclosure filings in five counties (Davidson, Hamilton, Knox, Rutherford and Shelby) accounted for 55 percent of the total foreclosure filings in the State in Q3_10. Shelby County, with one filing for every 140 housing units, had the highest foreclosure rate in the State. The County also had the highest number of properties with foreclosure filings in the State (2,868). In Shelby County, the total foreclosure filings decreased by 23 percent from the last quarter and by 18 percent from the same quarter last year (Q3_09). The county with the second highest foreclosure total was Davidson (1,066), followed by Knox County (702), Hamilton County (576) and Rutherford County (490). Compared to the second quarter of 2010, the total number of properties with foreclosure filings declined in the third quarter of 2010 in Davidson, Rutherford, Knox, and Hamilton counties by eight percent, six percent, four percent, and three percent, respectively. Davidson, and Hamilton counties had declines from the same quarter last year (the third quarter of 2009) – eight percent and one percent, respectively. Knox and Rutherford counties had increases from the third quarter of 2009 - nine percent and two percent, respectively.
In 65 counties, the total number of properties with foreclosure filings declined from the previous quarter, while in 25 counties, the number increased. Five counties did not have any change.
County Name 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
Total Number of Properties with Foreclosure Filings-Tennessee Counties- Q3 2010 Q3 2010 Q2 2010 Q3 2009 Percent Changes Total Number of Total Number of Total Number of Properties with 1/every X Ranking Properties with Properties with Foreclosure Housing among all Foreclosure Foreclosure % Change % Change Filings Unit (Rate) counties Filings Filings from Q2-10 from Q3-09 77 46 24 4 135 130 39 19 29 40 97 11 32 2 45 52 19 46 1,066 7 21 84 39 25 15 41 83 32 27 86 13 103 576 2 16 21 57 17
445 379 375 1,353 393 319 491 300 468 685 163 618 469 2,084 368 448 335 529 266 966 423 240 440 587 531 464 274 430 379 359 506 258 261 1,704 713 645 458 503
49 37 36 90 42 26 59 23 56 78 3 74 57 94 35 50 30 64 17 86 45 10 47 69 65 55 19 46 38 34 62 15 16 93 80 75 53 60
91 76 14 8 126 182 57 16 43 33 71 25 43 3 43 67 19 43 1,159 7 10 86 49 33 27 36 76 33 33 78 19 117 595 4 58 34 57 18
85 71 9 11 120 134 59 21 41 24 46 19 25 1 43 67 11 44 1,156 8 24 81 58 32 11 56 67 36 23 74 14 99 584 2 29 31 51 23
-15% -39% 71% -50% 7% -29% -32% 19% -33% 21% 37% -56% -26% -33% 5% -22% 0% 7% -8% 0% 110% -2% -20% -24% -44% 14% 9% -3% -18% 10% -32% -12% -3% -50% -72% -38% 0% -6%
-9% -35% 167% -64% 13% -3% -34% -10% -29% 67% 111% -42% 28% 100% 5% -22% 73% 5% -8% -13% -13% 4% -33% -22% 36% -27% 24% -11% 17% 16% -7% 4% -1% 0% -45% -32% 12% -26%
Total Number of Properties with Foreclosure Filings-Tennessee Counties- Q3 2010, Continued Q3 2010 Q2 2010 Q3 2009 Percent Changes Total Number of Total Number of Total Number of Properties with 1/every X Ranking Properties with Properties with Foreclosure Housing among all Foreclosure Foreclosure % Change % Change County Name Filings Unit (Rate) counties Filings Filings from Q2-10 from Q3-09 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
18 28 38 5 15 9 84 14 702 0 30 42 13 32 87 34 128 14 65 200 70 36 19 76 211 2 12 33 6 5 3 18 79 50 72 136 490 7
672 595 245 817 599 601 269 608 280 -386 414 387 454 231 279 337 964 199 180 324 327 302 249 324 1,475 676 452 1,601 864 1,034 461 389 276 344 187 208 1,333
76 70 12 83 71 72 18 73 22 95 39 44 40 52 9 21 31 85 7 5 28 29 25 13 27 91 77 51 92 84 87 54 41 20 33 6 8 89
32 30 59 6 17 8 81 13 731 4 67 50 14 39 123 28 173 29 72 210 83 41 26 70 202 4 17 37 8 5 2 26 69 45 56 145 524 3
20 26 45 10 22 5 78 9 647 6 45 34 13 30 83 11 153 25 47 186 91 15 20 57 179 3 12 34 18 4 1 26 50 57 81 129 480 4
-44% -7% -36% -17% -12% 13% 4% 8% -4% -100% -55% -16% -7% -18% -29% 21% -26% -52% -10% -5% -16% -12% -27% 9% 4% -50% -29% -11% -25% 0% 50% -31% 14% 11% 29% -6% -6% 133%
-10% 8% -16% -50% -32% 80% 8% 56% 9% -100% -33% 24% 0% 7% 5% 209% -16% -44% 38% 8% -23% 140% -5% 33% 18% -33% 0% -3% -67% 25% 200% -31% 58% -12% -11% 5% 2% 75%
Total Number of Properties with Foreclosure Filings-Tennessee Counties- Q3 2010, Continued Q3 2010 Q2 2010 Q3 2009 Percent Changes Total Number of Total Number of Total Number of Properties with 1/every X Ranking Properties with Properties with Foreclosure Housing among all Foreclosure Foreclosure % Change % Change County Name Filings Unit (Rate) counties* Filings Filings from Q2-10 from Q3-09 Sequatchie Sevier Shelby Smith Stewart Sullivan Sumner Tipton Trousdale Unicoi Union Van Buren Warren Washington Wayne Weakley White Williamson Wilson Tennessee** United States
29 299 2,868 17 6 137 260 91 6 11 13 5 32 121 14 20 27 184 145 10,346 930,437
180 145 140 487 1,055 541 244 257 571 780 709 515 545 442 505 787 395 342 301 267 139
4 2 1 58 88 66 11 14 68 81 79 63 67 48 61 82 43 32 24 28
33 324 3,708 21 9 108 279 82 7 21 28 5 47 124 4 21 30 274 181 11,944 895,521
28 328 3,519 17 12 64 275 60 9 4 15 8 42 106 9 19 25 185 117 10,888 937,840
-12% -8% -23% -19% -33% 27% -7% 11% -14% -48% -54% 0% -32% -2% 250% -5% -10% -33% -20% -13% 4%
*County ranking is based on the rate of foreclosure filings, a rank of one means the county had the highest retio of foreclosure to housing units. **Tennessee ranking in the nation among other states, a rank of one means the state had the highest retio 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
4% -9% -18% 0% -50% 114% -5% 52% -33% 175% -13% -38% -24% 14% 56% 5% 8% -1% 24% -5% -1%
