Tennessee Foreclosures Increase in May, But Remain Lower Than U.S. Average
Despite previous signs of a real estate market recovery, foreclosure filings spiked in May - the first month-over-month increase since January.
One in every 639 homes in the U.S. received a foreclosure filing last month, according to new data from RealtyTrac. That includes default notices, scheduled auctions, and bank repossessions.
Tennessee enjoyed lower rates than many states, with just 1 in every 1,094 properties entering foreclosure.
While discouraging, the jump in foreclosures was not entirely unexpected.
Big banks had slowed the pace of foreclosures in recent years to ensure their procedures were accurate and legal in light of 2010's robo-signing scandal, in which bank officials were accused of sloppily signing - and even falsifying - mortgage documents.
With the issue now resolved, lenders are in a hurry to push through foreclosures that had been on the back burner.
Fortunately for underwater homeowners, the latest round of foreclosures shouldn't put too much downward pressure on neighborhood home values.
Because many of today's foreclosure starts are being processed as short sales rather than bank-owned sales, they are more likely to sell for higher amounts.
But while that's good news for underwater homeowners who aren't at risk of losing their homes, it doesn't do much to help those anticipating a foreclosure notice.
Now that banks are back in the business of foreclosures, families delinquent on mortgage payments may have finally run out of luck. But for many, Tennessee bankruptcy may offer another chance.
More often than not, overwhelming debts - not home values - lead families to miss mortgage payments.
Homeowners who qualify for Chapter 13 bankruptcy have the ability to rearrange debts - often reducing their obligations - to free up money for catching up on missed payments. By making the bills more manageable, bankruptcy can pave the way for families to rebuild credit and strengthen finances.
Housing prices may be at the mercy of the market - but your family doesn't have to be.
To find out if bankruptcy can relieve your financial situation, consider speaking with one of our experienced Tennessee bankruptcy attorneys. Call the DebtStoppers Bankruptcy Law Firm today at 800-440-7235 for your free one-on-one debt analysis.
More Blog Entries:
Middle Tennessee Home Sales Rebound As Banks Aggressively Push Short Sales, Foreclosures: June 8, 2012
Children of Homeowners May Suffer Most in Tennessee Foreclosures: April 24, 2012
Additional Resources:
Foreclosure Activity Jumps in Troubling Sign for Housing Recovery, by Allison Lin, MSNBC.com