For any number of reasons, people in Tennessee, and throughout the U.S. may fall behind on their mortgage payments. As a result, their mortgage lenders could choose to foreclose, putting their homes in jeopardy. With the decline of the housing market and economy came an increase in foreclosures as many people experienced financial challenges due to unemployment, decreased income and other factors.
According to reports, the number of people with homes in the foreclosure process continues to remain unusually high. At 2.09 percent, the rate seen over the second quarter of 2015 was two times the rate during the housing boom’s peak. This was despite a sizeable decline in the rate of loans that are past due, but have not yet entered the foreclosure process. Adjusting for seasonality, the rate was reportedly 5.3 percent.
Overall, the foreclosure crisis appears to be recovering. News reports point out that the rate of foreclosure starts for the second quarter of 2015 was average to that of the housing boom. The rate was reportedly 0.4 percent. It was reported that the withdraw of the foreclosure crisis is a side effect of rising home values. While this may indicate that the housing market is recovering, economists are reportedly concerned. There is conjecture that the fast-rising values have caused a home-affordability problem.
While the housing market overall is recovering, some people may still find themselves struggling with overwhelming debt and facing foreclosure. Those experiencing situations such as this may consider seeking legal guidance. An attorney may explain their options to stop the foreclosure, which may include filing for bankruptcy.
Source: Wall Street Journal, “As Home Prices Rise, the Foreclosure Crisis Continues to Recede,” Joe Light, Aug. 13, 2015