Wednesday, February 15, 2006

Defaults Up 30% In Tennessee

A Knoxville TV station reports on foreclosures in Tennessee. "Huge housing sales coupled with low mortgage rates have been a trend across America the last several years. But there is a growing problem along with the market: Foreclosures. Eric Waddell tells us that the state of Tennessee ranks in an unenviable top ten list."

"Last year nearly 30 percent more homeowners from the Volunteer state had their homes forclosed and taken from them that the previous year."

"Mortgage expert Brad Boring advises before you buy a home work with your mortgage lender to figure out what you can actualy afford to spend on a house. Not nessasarily what kind of loan you can qualify for. 'Even though they may qualify for a lot more, I deal with comfort zones with people,' Boring said."

"He adds that he expects to see a lot of refinancing in the next two years as home owners try to get out of adjustable rate morgages, which have seen signifigant interest rate increases. (Realtor) Melissa Hill tells us that many times forclosures happen not because of the home price itself, but other consumer spending and credit card debts."

"'The problem results after they are into the home, and they are buyiung the new refrigerator, decorating the house and then they spend 10 or 20 thousand dollars on additional consumer debt,' Hill said."

"Natioanly over 845,000 properties across America entered forclosure procedures in 2005, 25 percent more than in 2004."


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