Rutherford County Foreclosure Activity
In this week's Tuesday Morning Coffee John reviews the May 2010 foreclosure statistics for Rutherford County and compares them to the national and state foreclosure rates.
JOHN: Hey, John Jones with Tuesday Morning Coffee, guys. Coming to you today very excited about the weekend sporting events. Those of you who know me know I’m not a soccer guy, but I actually love watching the World Cup. And I’m really excited because tomorrow at 9:00 in the morning if the USA wins, we’re going to the next round and I really enjoy watching the World Cup. Anybody that says soccer is a non-contact sport has not watched a World Cup event. Those guys get after it, and I love watching it.
I do wish they’d get rid of those daggum horns they’re blowing. It’s driving me crazy. But anyway, I think that’s a South African type thing there. Hey, we’re talking about foreclosures this week and we’re talking about how our foreclosures locally, in Rutherford County, stack up to the state and to the national averages. Okay, the way they figure the foreclosure rate is by housing units, so right now, currently in foreclosure where the process has started, the banks have actually started the foreclosure process, 1 in 521 homes in Rutherford County, 1 out of every 521 are actually in foreclosure.
That’s a 0.19% rate. To give you an idea of the state average, it’s 0.14. So it’s a little bit lower than our Rutherford County average. But the national average is 0.25, which is obviously quite a bit higher than our local levels. Why are we higher than the rest of the state or why is our averages higher? It’s because we’ve had more growth than most of the state. During the last five or six years when this exuberance period was going on we were the fastest growing county in the state.
So along with that comes some of the bad stuff too, which is a lot of homes that were bought on zero down financing and people lost jobs and they can’t hang onto their homes, which is very sad. For the month of May, we had 194 foreclosure filings. That is up from April of 180, but our highest month that we’ve had I think probably forever is 250 in March. That was a very high month for us. So foreclosures are here. We’re dealing with it. Our unemployment is over 10%. When you see that unemployment number coming down, you’ll see foreclosures coming down. When people have jobs, they can hang onto their houses.
Remember, we’re only talking about foreclosure filings here. We’re not talking about people actually behind on their mortgage. When we put that into effect, that rate really jumps up, okay. I don’t have the local statistics on this, but one out of every six mortgages in America are behind on their payment, and that is kind of an alarming number. What does that mean? I think it means that we’re in this for a while. Values are going to stay stagnant if not decrease for a while.
I know that’s not what anybody wants to hear, but I’m always going to tell you the truth. We will probably I think see two or three years’ worth of foreclosures before they start to decline. We have a job problem and we’ve got to create jobs. And until that gets fixed, which I think it’s going to kind of take care of itself, I don’t think there’s a whole lot the president can do to fix that right off the bat. And I think that we’ve got to get that back on track before we see this go down. This is very serious. Everybody knows at least one person out there who’s behind on their payments.
Please, please, please let them know their options. Have them call us. We have the best short sale staff here locally that I know of. We’ve gotten lots of training. We’re CDP certified to help people. There are options out there. Most people wait until it’s too late. Don’t do that. There are ways to help salvage your credit in this tough time. Bring them. Tell them to call us. We’ll sit them down. We’ll get powers of attorney authorizations to speak to the bank on their behalf. We’ll take a lot of this burden off of them. And we have helped a lot of people to date go through this process. So please, if you need us, JohnCJones.com or 867-3020.