Foreclosed homes in Knoxville have been increasing in numbers this year. It is part of the general wave hitting the country. Foreclosed homes in Knoxville are part of the pattern. To understand why foreclosed homes in Knoxville have been hitting the headlines a little homework is necessary. Knoxville is the 3rd largest city in Tennessee State in southern USA. The economy of Tennessee is based on textiles, cotton, cattle and electricity.
Knoxville is the seat of Knox County. Today it is the main campus of the University of Tennessee. Nearly 80% of the population is white, 16% blacks and the others are a sprinkling of Native Americans, Hispanics and Asians. The success story of Knoxville’s economy is the location of the university and its proximity to two important national highways. Why should foreclosed homes in Knoxville suddenly multiply and disturb the peace of this educational paradise?
Foreclosure is a legal process is initiated by lenders against defaulting borrowers. This is as old as the mortgage industry but why is the issue of foreclosed homes in Knoxville as well as other parts of the country becoming so important? It is because the numbers have suddenly alarmingly shot up. Figures are constantly changing but the latest is that there are 166 total listings in Knoxville. The rise in foreclosed homes in Knoxville is mainly due to the sub-prime market fiasco that has lately surfaced. Sub-prime mortgage agents used teaser rates to tempt borrowers to agree to loans that were floating – that is interest rates would rise later. The number of foreclosed homes in Knoxville increased because of hectic sub-prime activity.
The increase in number of foreclosed homes in Knoxville is directly in proportion to the houses bought during the real estate boom period from loans taken from the sub-prime category. This has led to a phenomenal increase in the number of foreclosed homes in Knoxville. It is to be noted however that the listing of foreclosed homes in Knoxville is inclusive of all the stages of foreclosure – delinquency and notices for foreclosure and auction.
Many analysts argue that foreclosed homes in Knoxville mainly belong to the blacks. But Knoxville is a white majority area and this argument about foreclosed homes in Knoxville falls flat. The foreclosed homes in Knoxville may have been the target of speculators who wanted to quick money. Today foreclosed homes in Knoxville are not selling because of lack of buyers.