Tennessee Foreclosure Trends: 2010
Tennessee1 Foreclosure Trends: 2010 How many/where/patterns Hulya Arik, Ph.D. March, 2011 According to the latest data from the RealtyTrac® US Foreclosure Market Report, Tennessee reported 39,206 properties with foreclosure filings2 in 2010, a four percent decline from 2009 and a four percent increase from 2008. A reason behind this decline from the previous year, 2009, is likely due to the combined effect of a 90-day HUD imposed moratorium on the foreclosure of FHA insured properties in 45presidentially-declared federal disaster counties affected by May 2010 flood3 and actions by the State legislature to amend TCA 35-5-117, which has resulted in an increased time frame for processing foreclosures in the State4. Foreclosure review and freeze initiated in October 2010 by some major lenders such as Bank of America might have kept the number of foreclosure filings low in 2010. Total number of properties with foreclosure filings in Tennessee accounted for 1.37 percent of the 2,871,891 foreclosure filings in the nation. In terms of total foreclosure filings, the U.S. had a two percent increase from 2009 and an increase of 23 percent from 20085. The RealtyTrac® report also shows that 1.41 percent6 of all Tennessee housing units received at least one foreclosure filing during the year, down from 1.49 percent from 2009. There was one foreclosure filing for every 71 housing units, which puts Tennessee in 23rd place in the nation. During the year, 2.23 percent of all the U.S. housing units, one in 45, received at least
1
Starting September 2008 RealtyTrac® stopped collecting Notices of Default (NOD) as a part of total filings for Tennessee. This action affects the year over year (YOY) comparisons for the months prior to this change. In this report, those NODs are removed from total foreclosure filings to make that YOY comparison more accurate. 2
For Tennessee, RealtyTrac’s report (http://realtytrac.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). 3
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 4
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 5
For this calculation, we excluded Tennessee NODs from the total United States foreclosure filings in 2008, as they were excluded from Tennessee foreclosure filings for the same period. 6
Total number of housing units used in this calculation is from the Census Bureau’s July 2009 estimates that can be found at http://www.census.gov/popest/housing/ .
one foreclosure filing, up from 2.21 percent in 2009. The state with the highest foreclosure filing rate in 2010 was Nevada. The total number of properties with foreclosure filings in four counties (Shelby, Davidson, Knox, and Hamilton) accounted for 49.5 percent of total foreclosure filings in the State in 2010. Shelby County ranked as number one among all counties in Tennessee. In Shelby County, 2.61 percent of all housing units, one in 38, received at least one foreclosure filing, down from 3.44 percent in 2009. In 2010, the total number of properties with foreclosure filings in Shelby County declined from 13,350 in 2009 to 10,522, a decline of 21 percent. The county with the second highest foreclosure total was Davidson (4,221), followed by Knox County (2,595), and Hamilton County (2,070). The number of properties with foreclosure filings in Hamilton County was five percent lower in 2010 than 2009 while in Davidson and Knox Counties, the number of properties with foreclosure filing increased in 2010 relative to 2009, four percent and six percent, respectively. Hancock County had the lowest number of properties with foreclosure filings in 2010 (7), followed by Clay (8), and Moore (8) Counties. Forty counties saw a decline in foreclosure filings from 2009 to 2010. Among the counties that had 200 or more properties with foreclosure filings in 2009, Williamson County had the largest annual increase (69 percent), followed by Sullivan (39 percent), and Marshall (37 percent) Counties. Three major Tennessee MSAs, Memphis7, Nashville-Davidson, and Knoxville, ranked (based on their foreclosure filing rates) 68th, 107th, and 138th in the nation, respectively, among metro areas with a population of 200,000 or more. Las Vegas was the metro area with nation’s highest foreclosure rate in year 2010.
7
Memphis MSA includes De Soto, Marshall, Tate, and Tunica Counties in Mississippi, Crittenden County in Arkansas, and Fayette, Shelby and Tipton Counties in Tennessee.
Total Number of Properties with Foreclosure Filings-Tennessee Counties- 2010 2009 2010 Total Number of Total Number of Properties with 1/every X Ranking Properties with Foreclosure % Housing Household among all Foreclosure % Change County Name Filings Units (Rate) counties* Filings from 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
295 237 57 26 458 530 182 73 136 129 290 60 132 8 163 217 73 154 4,221 29 55 303 193 101 72 149 281 119 107 317 51 407 2,070 7 126 92 233 65
0.86 1.34 0.63 0.48 0.86 1.26 0.93 1.27 0.99 0.47 1.82 0.87 0.87 0.19 0.97 0.92 1.14 0.63 1.48 0.32 0.81 1.49 1.12 0.68 0.90 0.78 1.23 0.86 1.03 1.02 0.77 1.52 1.37 0.20 1.09 0.67 0.88 0.76
117 74 159 210 117 79 107 79 101 214 55 114 115 527 103 109 88 160 68 308 124 67 89 148 112 129 81 116 97 98 130 66 73 490 91 148 113 132
54 18 75 83 55 24 44 23 40 85 8 51 52 95 41 47 31 76 16 90 59 14 32 71 49 63 27 53 38 39 65 13 17 94 35 72 50 67
303 320 50 42 390 511 215 64 139 115 229 56 92 8 148 246 72 196 4,049 32 62 278 219 99 50 149 298 131 93 277 39 381 2,186 9 147 99 207 76
-3% -26% 14% -38% 17% 4% -15% 14% -2% 12% 27% 7% 43% 0% 10% -12% 1% -21% 4% -9% -11% 9% -12% 2% 44% 0% -6% -9% 15% 14% 31% 7% -5% -22% -14% -7% 13% -14%
Total Number of Properties with Foreclosure Filings-Tennessee Counties- 2010, Continued 2009 2010 Total Number of Total Number of Properties with 1/every X Ranking Properties with Foreclosure % Housing Household among all Foreclosure % Change County Name Filings Units (Rate) counties* Filings from 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
89 97 155 23 73 22 275 61 2,595 12 173 145 47 119 347 91 575 79 247 776 276 135 65 255 743 8 64 121 36 21 8 78 260 177 261 479 1,962 23
0.73 0.58 1.65 0.56 0.81 0.40 1.21 0.71 1.31 0.43 1.48 0.83 0.93 0.81 1.70 0.94 1.32 0.58 1.89 2.13 1.21 1.14 1.11 1.33 1.07 0.27 0.78 0.81 0.37 0.48 0.26 0.93 0.83 1.26 1.05 1.86 1.89 0.24
137 173 61 179 124 248 83 141 76 232 67 121 108 123 59 106 76 173 53 47 83 88 90 75 93 374 128 124 269 208 391 108 120 79 96 54 53 410
68 79 10 80 61 88 29 69 21 87 15 57 46 58 9 42 20 78 6 3 28 30 33 19 36 91 62 60 89 82 92 45 56 25 37 7 5 93
83 111 157 24 69 24 297 41 2,443 16 157 158 55 98 310 63 645 68 180 661 314 107 70 262 775 9 53 105 49 15 5 78 243 168 262 382 1,741 23
7% -13% -1% -4% 6% -8% -7% 49% 6% -25% 10% -8% -15% 21% 12% 44% -11% 16% 37% 17% -12% 26% -7% -3% -4% -11% 21% 15% -27% 40% 60% 0% 7% 5% 0% 25% 13% 0%
Total Number of Properties with Foreclosure Filings-Tennessee Counties- 2010, Continued 2009 2010 Total Number of Total Number of Properties with 1/every X Ranking Properties with Foreclosure % Housing Household among all Foreclosure % Change County Name Filings Units (Rate) counties* Filings from 2009 Sequatchie Sevier Shelby Smith Stewart Sullivan Sumner Tipton Trousdale Unicoi Union Van Buren Warren Washington Wayne Weakley White Williamson Wilson Tennessee** United States
112 1,050 10,522 92 41 383 976 294 24 53 84 17 136 413 32 74 101 1,035 576 39,206 2,871,891
2.12 2.40 2.61 1.10 0.64 0.51 1.52 1.25 0.69 0.61 0.90 0.65 0.77 0.76 0.45 0.47 0.94 1.63 1.29 1.41 2.21
47 42 38 91 156 195 66 80 144 163 111 153 130 132 223 214 107 61 78 71 45
4 2 1 34 74 81 12 26 70 77 48 73 64 66 86 84 43 11 22 23
116 1,123 13,350 73 42 275 1,074 248 33 28 71 18 191 386 27 72 98 613 497 40,733 2,824,674
-3% -7% -21% 26% -2% 39% -9% 19% -27% 89% 18% -6% -29% 7% 19% 3% 3% 69% 16% -4% 2%
*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
Starting September 2008 RealtyTrac® stopped collecting Notices of Default (NOD) as a part of total filings for Tennessee. This action affects the year over year (YOY) comparisons for the months prior to this change. In this report, those NODs are removed from total foreclosure filings to make that YOY comparison more accurate. 2
For Tennessee, RealtyTrac’s report (http://realtytrac.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). 3
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 4
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 5
For this calculation, we excluded Tennessee NODs from the total United States foreclosure filings in 2008, as they were excluded from Tennessee foreclosure filings for the same period. 6
Total number of housing units used in this calculation is from the Census Bureau’s July 2009 estimates that can be found at http://www.census.gov/popest/housing/ .
one foreclosure filing, up from 2.21 percent in 2009. The state with the highest foreclosure filing rate in 2010 was Nevada. The total number of properties with foreclosure filings in four counties (Shelby, Davidson, Knox, and Hamilton) accounted for 49.5 percent of total foreclosure filings in the State in 2010. Shelby County ranked as number one among all counties in Tennessee. In Shelby County, 2.61 percent of all housing units, one in 38, received at least one foreclosure filing, down from 3.44 percent in 2009. In 2010, the total number of properties with foreclosure filings in Shelby County declined from 13,350 in 2009 to 10,522, a decline of 21 percent. The county with the second highest foreclosure total was Davidson (4,221), followed by Knox County (2,595), and Hamilton County (2,070). The number of properties with foreclosure filings in Hamilton County was five percent lower in 2010 than 2009 while in Davidson and Knox Counties, the number of properties with foreclosure filing increased in 2010 relative to 2009, four percent and six percent, respectively. Hancock County had the lowest number of properties with foreclosure filings in 2010 (7), followed by Clay (8), and Moore (8) Counties. Forty counties saw a decline in foreclosure filings from 2009 to 2010. Among the counties that had 200 or more properties with foreclosure filings in 2009, Williamson County had the largest annual increase (69 percent), followed by Sullivan (39 percent), and Marshall (37 percent) Counties. Three major Tennessee MSAs, Memphis7, Nashville-Davidson, and Knoxville, ranked (based on their foreclosure filing rates) 68th, 107th, and 138th in the nation, respectively, among metro areas with a population of 200,000 or more. Las Vegas was the metro area with nation’s highest foreclosure rate in year 2010.
7
Memphis MSA includes De Soto, Marshall, Tate, and Tunica Counties in Mississippi, Crittenden County in Arkansas, and Fayette, Shelby and Tipton Counties in Tennessee.
Total Number of Properties with Foreclosure Filings-Tennessee Counties- 2010 2009 2010 Total Number of Total Number of Properties with 1/every X Ranking Properties with Foreclosure % Housing Household among all Foreclosure % Change County Name Filings Units (Rate) counties* Filings from 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
295 237 57 26 458 530 182 73 136 129 290 60 132 8 163 217 73 154 4,221 29 55 303 193 101 72 149 281 119 107 317 51 407 2,070 7 126 92 233 65
0.86 1.34 0.63 0.48 0.86 1.26 0.93 1.27 0.99 0.47 1.82 0.87 0.87 0.19 0.97 0.92 1.14 0.63 1.48 0.32 0.81 1.49 1.12 0.68 0.90 0.78 1.23 0.86 1.03 1.02 0.77 1.52 1.37 0.20 1.09 0.67 0.88 0.76
117 74 159 210 117 79 107 79 101 214 55 114 115 527 103 109 88 160 68 308 124 67 89 148 112 129 81 116 97 98 130 66 73 490 91 148 113 132
54 18 75 83 55 24 44 23 40 85 8 51 52 95 41 47 31 76 16 90 59 14 32 71 49 63 27 53 38 39 65 13 17 94 35 72 50 67
303 320 50 42 390 511 215 64 139 115 229 56 92 8 148 246 72 196 4,049 32 62 278 219 99 50 149 298 131 93 277 39 381 2,186 9 147 99 207 76
-3% -26% 14% -38% 17% 4% -15% 14% -2% 12% 27% 7% 43% 0% 10% -12% 1% -21% 4% -9% -11% 9% -12% 2% 44% 0% -6% -9% 15% 14% 31% 7% -5% -22% -14% -7% 13% -14%
Total Number of Properties with Foreclosure Filings-Tennessee Counties- 2010, Continued 2009 2010 Total Number of Total Number of Properties with 1/every X Ranking Properties with Foreclosure % Housing Household among all Foreclosure % Change County Name Filings Units (Rate) counties* Filings from 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
89 97 155 23 73 22 275 61 2,595 12 173 145 47 119 347 91 575 79 247 776 276 135 65 255 743 8 64 121 36 21 8 78 260 177 261 479 1,962 23
0.73 0.58 1.65 0.56 0.81 0.40 1.21 0.71 1.31 0.43 1.48 0.83 0.93 0.81 1.70 0.94 1.32 0.58 1.89 2.13 1.21 1.14 1.11 1.33 1.07 0.27 0.78 0.81 0.37 0.48 0.26 0.93 0.83 1.26 1.05 1.86 1.89 0.24
137 173 61 179 124 248 83 141 76 232 67 121 108 123 59 106 76 173 53 47 83 88 90 75 93 374 128 124 269 208 391 108 120 79 96 54 53 410
68 79 10 80 61 88 29 69 21 87 15 57 46 58 9 42 20 78 6 3 28 30 33 19 36 91 62 60 89 82 92 45 56 25 37 7 5 93
83 111 157 24 69 24 297 41 2,443 16 157 158 55 98 310 63 645 68 180 661 314 107 70 262 775 9 53 105 49 15 5 78 243 168 262 382 1,741 23
7% -13% -1% -4% 6% -8% -7% 49% 6% -25% 10% -8% -15% 21% 12% 44% -11% 16% 37% 17% -12% 26% -7% -3% -4% -11% 21% 15% -27% 40% 60% 0% 7% 5% 0% 25% 13% 0%
Total Number of Properties with Foreclosure Filings-Tennessee Counties- 2010, Continued 2009 2010 Total Number of Total Number of Properties with 1/every X Ranking Properties with Foreclosure % Housing Household among all Foreclosure % Change County Name Filings Units (Rate) counties* Filings from 2009 Sequatchie Sevier Shelby Smith Stewart Sullivan Sumner Tipton Trousdale Unicoi Union Van Buren Warren Washington Wayne Weakley White Williamson Wilson Tennessee** United States
112 1,050 10,522 92 41 383 976 294 24 53 84 17 136 413 32 74 101 1,035 576 39,206 2,871,891
2.12 2.40 2.61 1.10 0.64 0.51 1.52 1.25 0.69 0.61 0.90 0.65 0.77 0.76 0.45 0.47 0.94 1.63 1.29 1.41 2.21
47 42 38 91 156 195 66 80 144 163 111 153 130 132 223 214 107 61 78 71 45
4 2 1 34 74 81 12 26 70 77 48 73 64 66 86 84 43 11 22 23
116 1,123 13,350 73 42 275 1,074 248 33 28 71 18 191 386 27 72 98 613 497 40,733 2,824,674
-3% -7% -21% 26% -2% 39% -9% 19% -27% 89% 18% -6% -29% 7% 19% 3% 3% 69% 16% -4% 2%
*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
