KNOX COUNTY, Tenn. — Foreclosures in Knox County are at an all-time low. They've been falling steadily since the Great Recession in 2008, according to experts.
The Great Recession threw the housing market for a loop. Many buyers and sellers paid the price, and the number of foreclosures went sky-high.
"What happened is, people were borrowing 100% to 125% on their real estate, and the value went down. That's why we were seeing so many people being foreclosed on," said Nick McBride, Knox County's Register of Deeds. "At one point in 2010, we were seeing over six Knox Countians being foreclosed on a daily basis."
The Register of Deeds tracks the trends of foreclosures in the county. In 2010, there were 1,427 homes foreclosed on.
However, that's the same year congress put some precautions in place to keep people in their homes. McBride says the Dodd-Frank Act played a big part in that. The Dodd-Frank Act placed many aspects of the financial industry in the hands of the government and put stricter regulations on banks for lending.
"In January, we only saw eight or nine foreclosures in Knox County, which is very good," McBride said. "And, as the real estate value increases, I think we will continue to see less and less foreclosures."
In 2021, Knox County had 110 foreclosures. That's the smallest number on record.
"With the price increases and appreciation that we're seeing, I just don't see us having many foreclosures unless someone was just in bad financial shape," McBride said.
He also said that Knox County will always have some foreclosures. But, encouraging smart homeownership is a big part of avoiding them.
"If someone is in financial trouble and difficulties, try to sell your home without going through that, with the foreclosure, if you can at all possible," McBride said.
If your house is at risk of foreclosure, there are resources to help you stay in your home. The number for foreclosure prevention counseling is (888) 995-HOPE