• 08
  • August
    2011

A recent article in the Kingsport Times-News points out that while foreclosures declined in over 84 percent of US metro area in the first half of 2011, Kingsport-Bristol and Johnson City saw an increase in filings. That according to RealtyTrac's mid-year foreclosure report

RealtyTrac's report shows that, compared to the last half of 2010, foreclosure filings actually increased in Kingsport-Bristol and Johnson City. In the first half of 2011, 419 filings came out of the Kingsport-Bristol metro area and 286 filings came out of Johnson City. The bulk-74 percent-of those filings came out of Washington and Sullivan counties.

Sources said that Sullivan County's increase largely came from sudden spikes in filings in January and May, and a June spike broke Washington County's trend toward a decrease in filings since the beginning of the year.

According to RealyTrac's CEO, James Saccacio, a large reason for the decrease in filings is a backlog in local markets with banks being unable to sell foreclosed properties, as well as the robo-signing scandal that came out last fall, which was the result of banks failing to properly handle paperwork and follow correct foreclosure practices.

RealtyTrac noted that the areas with the largest declines in foreclosures are states that use a judicial foreclosure process where the paperwork must be examined by a court. In Tennessee, lenders are able to use either a judicial or a non-judicial foreclosure process.

In Tennessee, one in every 161 houses is currently in foreclosure, compared to the national average of one in every 111 homes. States in the Southwest continue to struggle more than other states.

Source: Kingsport Times-News, "Local mid-year foreclosures increase, buck national trend," Don Fenley, July 28, 2011.