The Nashville-area housing market finished 2012 in much better shape, say the researchers at CoreLogic. The foreclosure rate fell for the eighth straight month to its lowest level since August 2009, and the number of properties delinquent 90 days or more ticked down again. That statistic is now a full percentage point below its early 2011 level.
California-based RealtyTrac has released its January numbers for foreclosure properties and Tennessee looks, relatively speaking, fairly healthy.
The state recorded 1,542 foreclosure filings in January, down 26.8 percent from the January 2012 figure. On a somewhat sour note, the month saw 814 foreclosure starts, up 32.4 percent from January of the previous year. However, Tennessee had 728 foreclosure completions this past January, down 51 percent from the January 2012 total.
For January and nationwide, foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 150,864 U.S. properties, a decrease of 7 percent from the previous month and down 28 percent from the January 2012 mark. The report also shows one in every 869 U.S. housing units with a foreclosure filing during the month.
For RealtyTrac's national release, click here.
Nearing the end of a year in which his team will close $1 billion in new loans for the first time, Churchill Mortgage President Mike Hardwick says the company has hired another 10 people in operations and sales roles. Four of the additions are based in Brentwood and another four are in Texas. Check out the details here.
The latest CoreLogic data on area foreclosures and mortgage loan delinquencies shows a big month-to-month drop in both. The foreclosure rate in October hit its lowest point since September of 2009, while the percentage of loans behind 90 days or more hadn't been that low since July of that year. CoreLogic's numbers reinforce several positive data points from other parts of the local housing market and suggest 2013 should see a pick-up in construction as well as a decent improvement in the finances of local banks that rely more heavily on mortgage lending.
Bone McAllester Norton attorney David Anthony says a Tennessee Court of Appeals decision last week should help lenders bidding on foreclosed assets prevail in litigation after they buy distressed assets. The appeal judges said that a 14 percent discount to a property's appraised value is "commercially reasonable" and thus gives banks the backing they might need in court. But Anthony warns that there's a good chance the new guidelines will be tweaked in the not-too-distant future.
This opinion is creditor-friendly, but not overly so. Keep in mind, a bank conducting a foreclosure must still bid at least 86% of a property’s highest value. Taking into account costs of the foreclosure, the costs of “owning” property, and other administrative costs associated with foreclosure, I question whether we’ll see a later opinion on different facts that affirms a lower percentage (65%-75%).
CoreLogic's latest data on mortgage delinquency and foreclosure rates show Middle Tennessee consumers and lenders continuing to steadily process the housing bust. The share of loans that are at least 90 days behind (the blue line in the chart below) has come down 45 basis points over the past year while the region's foreclosure rate is at its lowest since July 2010. Both Nashville-area statistics are almost 2 percentage points below the national averages.