The economic downturn hit many homeowners in Tennessee particularly hard. In some cases, people lost their jobs and had a difficult time paying for basic expenses. With unemployment rates high, the rate of foreclosures in Tennessee also rose. They hit a high in 2009.
However, in recent years there has been a slight turn around in the economy. Experts say that low interest rates and more stringent credit standards have made it easier for people to pay their debt — including their mortgages — over the past couple years. Therefore, the rate of foreclosures in the state have fallen. According to new data, last year the foreclosure rate in one Tennessee county was down by 15.3 percent.
While these are positive signs for many consumers, there are still those who are struggling. Through no fault of their own people are still dealing with unemployment, medical bills, credit card debt and other financial difficulties. In fact, Tennessee is still high on the list of states for number of bankruptcies per year. Therefore, many residents are still looking for ways to deal with their financial issues and keep their family home.
Those facing foreclosure do have options that can help them stop the process. In some cases, filing for bankruptcy may be one way for people to keep their home. By filing for bankruptcy, people may be able to set up a repayment plan to make debts more manageable, thereby freeing up money to pay the mortgage. Furthermore, depending on the facts in each case, people may be able to negotiate a short sale with the bank. In this case, people won’t keep the home, but they will sell it without having to pay for the deficit.
The right solution for a homeowner will depend on that person’s specific situation. But Tennessee residents should know they do have legal rights that can help with their financial challenges.
Source: Times Free Press, “Bankruptcies and foreclosures declined last year; but the tri-state still leads the nation in going broke,” Dave Flessner, Jan. 12, 2014