In the tri-cities, new foreclosure requests continue to decline, while mortgage default rates rise. Moratoria imposed by the government have slowed foreclosures, but experts say servicers have taken action against vacant and abandoned properties. According to Rick Sharga, executive vice present of RealtyTrac and ATTOM Data Solutions, these foreclosures are likely causing the slight increase we’ve seen nationwide in the past few months.
ATTOMs Q1 Foreclosures Market Report shows a 9% increase in the US from the previous quarter but a decrease of 78% year over year.
The number of new Tri-Cities registrations was 44 compared to 43 in the previous quarter. There were 150 new registrations during the first quarter.
Foreclosure requests for Tri-Cities peaked in 2010 at 1,277. The total for 2020 was 305, a 76% decrease from the high.
According to CoreData, 5.6% of pledged properties in the Kingsport-Bristol (MSA) metropolitan area are in a state of crime. In the Johnson City MSA the share is 5%. Last year the Kingsport-Bristol rate was 4.5%. It was 4% in the Johnson City MSA.
The number of badly criminal mortgages is 3.5%, up from 1.3% last year in Kingsport-Bristol and 3% compared to 1.2% last year in the MSA of Johnson City.
The MSA Kingsport-Bristol comprises the counties of Hawkins and Sullivan in NE Tenn. As well as Counties Scott and Washington in SW Va.
The Johnson City MSA included the counties of Carter, Washington, and Unicoi.
There are around 90,000 mortgaged properties in the Tri-Cities. While the number currently in indulgence isn’t available if you apply the national average, it’s less than 5,000.
Many of the forbearance properties will end with an extension of the life of the mortgage so there are no significant foreclosures or short sales.
“The government’s foreclosure moratorium and the CARES law’s mortgage forbearance program have extended condominium foreclosure deadlines by a full year,” noted Sharga. “Hopefully this extra time will give financially disadvantaged homeowners an opportunity to get back on their feet and work with their lenders to avoid foreclosure when government programs run out.”
Kingsport-Bristol had the highest number of new foreclosure requests in the first quarter compared to 29 a year earlier. Sullivan Co. – the region’s highest housing market – had the highest number of new foreclosure applications – 18. Hawkins and Washington Co. VA had the second highest number of new applications.
The Johnson City MSA had 10 new registrations out of 14 in the previous quarter. Washington Co. TN – the region’s second largest marketplace – had five new registrations and Carter Co. had four new registrations.
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