The State of Tennessee and the Foreclosures Crisis
The Tennessee foreclosures epidemic is still on the rise in some areas. However there has been a significant change in the last month of December 2010 and January 2011. The state of Tennessee has seen a decrease in foreclosures by anywhere between 2%-16% in the last two months of December and January. Tennessee’s economy is slowly starting to show an increase of positive growth in the real estate market trend. In 2008, Tennessee was ranked fifth in overall best economy in the United States. Today, that trend shows close to the same as in 2010 with an increase towards employment status. Today, 68% of all Tennessee residents are full time employed, with part-time employed residents at 9%. This gives the state of Tennessee an overall rate of 75% employment status. Showing an increase in employment productivity also decreases foreclosure proceedings which show positive results for Tennessee. However, certain areas of Tennessee still show plummeting downfalls in foreclosures and employment.
The total number of Chattanooga foreclosures has dipped by 6.1% for the first time in six years within the economic crisis. Chattanooga is showing an increase in employment, and with the 16.2% decrease in foreclosures in the months of December – January, analysts see an overall economy rise and that recovery is on the way. Knoxville and Nashville, Tennessee are also on the road to recovery with increased economic growth. Knoxville, being the third largest city in Tennessee, shows an increase of 1.3% in employment status. Nashville, being the state capitol of Tennessee, is showing an increase of 0.4% in the employment status. This gives hope for many residents who are on the foreclosure list or being threatened with home foreclosure. Increased economy equals increased jobs and a decrease in homeowner foreclosures.
Cordova foreclosures show an overall increase of 7.62% in the months of December – January. This town has an overall massive decline in employment by a total of 5.6%. With less employment available many homeowners are not able to afford keeping their homes and in turn, lose them. Otherwise they are just moving to where there is employment. Franklin foreclosures have increased by 15.27% in the months of December – January. The Arlington foreclosures rate also shows an overall increase of 14.5% in the months of December – January. These towns are 
showing a -0.9% in employment growth. This causes many people to lose their homes to foreclosures due to lack of employment and an overall decline in economic growth.
However, real estate moguls are not ready to declare that the housing and foreclosure crisis is over with just yet. Experts foresee an increase in Tennessee foreclosures in 2011. Known as the double dip, most homes cannot recover their previous value. Homes are simply selling for less due to their foreclosure. If it had not been for the foreclosure, the home would be much higher in value. Much of the decline in foreclosures was the result of Bank of America and many other major banks who were accused of “robo” foreclosures. This means that many of these foreclosures were signed and taken before the proper legal order of procedures was taken. This created a large lull in foreclosures for a period of time while the “robo” issues were being investigated. In December 2010, Fanny Mae ordered foreclosures to resume. Foreclosures will not decrease again until possibly the latter half of 2011 when the job market and economy starts to rise. Tennessee is in the middle of a new era, possibly with positive growth in the real estate market. Buying a home may very well become a new trend in 2011 with lower prices and ideal living costs.
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