Foreclosure Process for a Home Showing a Different Face

The foreclosure process for a home usually starts when the homeowner is late in paying his or her monthly mortgage loan. In the past, majority of cases involved homeowners who had took out subprime mortgages or bad loans. Recently, however, more and more traditional borrowers are losing their homes to foreclosure in Tennessee.
Although Nashville foreclosures for sale and statewide distressed property figures are still dominated by properties with subprime loans, an increasing number of traditional mortgages are joining the foreclosure fray, with a big amount of properties coming from higher-end neighborhoods and more expensive home communities.
Data showed that an increasing percentage of Tennessee foreclosure homes for sale came from suburban areas whose owners purchased the properties at a price ranging from $200,000 to $400,000 during the pre-crisis area. They are also borrowers who took out traditional loans and most of them have multiple sources of income, having more than one person in the household employed at a high paying job.
Analysts stated that the problem lies in the job element. A big number of properties entering foreclosure process for a home are reportedly owned by people who can afford a high-end dwelling a few years ago, but have lost their jobs in the past year. This resulted in their inability to pay for their mortgages, regardless of the fact that they have traditional loans, which are considered relatively safe.
The latest properties entering the distressed market are not like most houses that are priced so low that it is like offering free foreclosed homes for sale. Majority of the latest additions to the state's foreclosure figures are reportedly priced at least $200,000, with most of them coming from previously insulated suburban areas. Census reports showed that the foreclosure problem is creeping towards areas like Cordova and other high-end neighborhoods in Shelby County.
The same development is happening nationwide, analysts have reported. Last year, an estimated 87% of delinquent borrowers or properties entering the foreclosure process for a home for the first time were accounted for by prime rate loans. The figure is expected to rise again this year unless big improvements will happen in the nation's job market in the coming months.