Tennessee Foreclosure Properties Jump Again In January

12 March 2008

Author: admin Posted under Foreclosure homes

January was another strong month for foreclosure properties in Tennessee, as the state climbed the rankings to hold the 16th spot among states with the highest rate of foreclosures.

Tennessee has been ahead in the foreclosure properties world for some time, as a slow economy and the widespread instatement of adjustable rate mortgages in the past 5 or so years have led to a rash of defaults all over the state. One of the areas that managed for along time to remain relatively stable was Nashville, due to its recent growth and surging job market and economy. However, investors keeping a watchful eye on the area have now noticed that even this booming city has many more new foreclosure properties coming onto the market, creating lots of opportunities for buying at below market rates.

During January 2008, Tennessee experienced a 12% increase in the amount of foreclosure filings over December 2007. Generally, this statistic is often chalked up to the lower rate of foreclosure that occurs around the holidays, but when you compare the January 2008 statistics with the January 2007 statistics, you still see a 10% rise, indicating that there seem to be more homes in foreclosure coming onto the market. This follows the predictions of many housing market experts and economists. Citing the fact that there are millions more adjustable rate mortgages ready to reset and enter periods of fluctuating interest in 2008, many believe that 2008 could be the biggest year for foreclosure properties yet, in Tennessee and beyond.

Many other states also experienced a dramatic rise in their foreclosure rate in January, suggesting that this is a national trend, and that even local economies and markets can do little to insulate themselves from its effects.

For investors, values at auction have been lowest in areas surrounding Memphis and Knoxville. Keeping an eye on these areas could provide very low costs, but it’s also important to consider which properties have the most potential for growth in value once the market rights itself. For many, this means Nashville is still the most in-demand region of Tennessee when it comes to foreclosure properties.