Foreclosures skyrocket, locally and nationally

Foreclosures skyrocket, locally and nationally

July 30, 2007

By MELISSA DiPANE
6 News Anchor/Reporter

KNOXVILLE (WATE) -- Tennessee ranks 12th in the nation for home foreclosures. There's one filing for every 123 households and local numbers show the same trend.

Realtors say the number of foreclosures in Knox County alone has sky rocketed in the past year. And many say it will get worse before it gets better.

There are a number reasons behind the increase but primarily, homeowners get in over their heads with interest only loans.

"People thought 'We'll buy this home, be in it for three years, gain equity and sell it before the higher payment,'" says Tammie Hill, a realtor with Realty Executives in Fountain City. "The market slowed. You can't sell the house and interest rates and payments go up."

Job loss, health crisis and divorce are other reasons the rates have increased.

In the Knox County area, there are currently 107 homes listed for sale by foreclosure.

Hill says it's happening in every price range. "It's not just your $30,000 $40,000 and $50,000 homes anymore. There are homes as high as $839,000 foreclosing."

She says Knoxville is part of the growing national trend.

A new report out Monday shows 926,000 foreclosure filings in America in the first half of this year.

That's up 30 percent from the last six months of 2006 and more than 55 percent from the first half of last year.

More and more people are finding themselves way behind on their loan payments.

"Three percent of loans are in foreclosure in the U.S.," Hill says, "If it keeps growing next year, it'll be at five percent. By 2011, expect it to be 10 percent of all loans in America under foreclosure."

Hill says it doesn't have to be that way.

If you're behind in your loan payments, get help immediately. Sometimes, loan companies can help you refinance with a lower interest rate.

You can also contact a realtor to try and sell your house before you get too far behind in your payments. That way you can salvage your equity and your peace of mind.

Struggling homeowners can contact a HUD-approved counseling agency. For a counseling service near you, call 1-800-877-8339.