Home Foreclosures are at a Historical Low

Home Foreclosures Hit a 20 Year Low in the United States

 

Home Foreclosures Are Historically Low

Home Foreclosures are down across the United States but there are signs that things may be starting to change. In July 2019, the foreclosure inventory was down 0.1% with 0.4% being the national average, a 20-year low!

30 to 120 Day Count Down

Banks look at the 30 days delinquent period vs 30 to 59 days vs 60 to 90 days. What they are reporting is late payments are down from last year. The first month’s late payments number less than 1% while 30 to 59 days late payments are 13.8%. Going 60 to 90 days, the late payments jump to 24%. After 120 days, the foreclosure notice of default is sent out and an auction date will be established.

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Home foreclosures are at a 20-year low. This chart compares 2019 to 2018 in the number of late payments.

Home Foreclosures on the Rise in Some Areas

Serious Delinquency of 90 days or more past due mortgages has actually increased in 5 upper Mid-West states of Iowa, Nebraska, South Dakota, North Dakota, and Minnesota. The rest of the United States has declined slightly since 2018. That being said, some regional areas in the Southeast have increased in 90+ day late mortgage payments. These areas include the towns of Panama City to Port Saint Joe in the Panhandle of Florida, possibly from the effects of Hurricane Michael last year. Another area is a small pocket in Southwest Georgia, and last area is from Myrtle Beach, South Carolina to the Greenville area of North Carolina and is probably Hurricane Florence related.

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3.8% in delinquent mortgage payment rate is at a 20 year low.

Foreclosures in Nashville and Middle TN are Dropping

How does the Nashville area home foreclosures compare to its sister regions and across the Mid-West? Middle Tennessee, Southern Kentucky, and Northern Alabama all show further decreases in 2019 of 90+ days late mortgage payments which translates into fewer foreclosures.

This is all great news with fewer people losing their homes to foreclosures. This also means we are in a very strong economy and have been since 2009 in Nashville. But not all homeowners are in good financial shape. There are many homeowners behind on mortgage payments by 1, 2, 3, and even 4 months. Unless these people can turn things around, they are headed to home foreclosures in Middle TN.

Causes of Home Foreclosures in Nashville

What causes people to fall behind in their monthly mortgage payments? There are many reasons. Some people lose their job and cannot find another one. Others make too little money to support their mortgage and their family. Illness and divorce also cause people to sell their homes to prevent home foreclosures in Nashville. Whatever the cause, they have to sell.

Develop a Plan to Prevent Foreclosure

Once a homeowner has missed that first mortgage payment, they really need to begin planning a strategy to resolve the situation. The bank is forgiving only for about 4 months and as every day goes by, interest builds and penalties start adding up. By the 4th month, the Foreclosure notice of default is sent to them by certified mail. This dreaded letter announces the bank’s intention to foreclose and an auction date has been set. This notice also means the bank has turned over the foreclosure process to third-party attorneys and the cost of stopping the foreclosure just went up another $2,500 to $5,000.

Homeowners have options to resolve the late payments and foreclosure. They can payback all the late payments with interest, fees, and penalties until about the 4th month. After that, they have to pay off the foreclosure attorney fees as well. Another option is to sell the house on the open market with a real estate agent or sell by yourself as an FSBO, For Sale by Owner. If the home is in need of a lot of repairs and updates, this option may not be feasible. These two methods do take time, if you have it, and may not be sold in time to stop the foreclosure.

Real Estate Investors Rescue Homeowners

Another option for the homeowner facing residential foreclosure is to sell the home as-is and fast to an investor or direct buyer. Real estate investors buy homes in all conditions and can close quickly with cash. A few investors actually do a process called Subject To, meaning they make monthly payments on the loan while the mortgage remains in the homeowner’s name, but the property deed is in the name of the investor. This has an added benefit for the homeowner because the investor will make those mortgage payments on time every month and this process slowly rebuilds the homeowner’s credit. The investor cannot afford to miss or be late on one mortgage payment because their own reputation and credit rating is on the line. A foreclosure can destroy a person’s credit by 80 to 150 points. Secondly, a foreclosure remains in the person’s credit history for 2 to 3 years minimum.

Sell My House Fast Nashville TN

This is our home buying process at Southern Homes Investments, we buy houses fast Nashville TN that are facing foreclosure or those late in mortgage payments. We have saved several people from foreclosure and rebuilt their credit with the Subject To process. We get calls from homeowners who want to sell my house fast Nashville TN, or they are looking for someone to take over house payments like in Subject To. By coming to their rescue, we save the homeowners from so much stress and worry while giving them a chance at a new start in life. When Southern Homes Investments buys a house, there are no commissions or fees the sellers have to pay. We cover all of that plus their closing costs. Truly at closing, they sign documents, pick up their check and walk away. It’s as simple as that.

 

If you or someone you know is really hurting financially or otherwise is faced with the prospect of foreclosure, please call us at 615-235-0612 or visit our website at www.SouthernHomesInvestments.com to learn more about us. We would like to speak to you and see how we might help you.

 

Disclaimer: David Wright is a licensed real estate agent in Tennessee, and this article is not a solicitation to list your house.

 

 

 

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