Memphis, like so many other cities in America, continues to see rising foreclosures and a rise in delinquent notes. Some caused by circumstance, some caused by the economy and many caused by the initial actions of the lender. Not all the news is bad for Memphis real estate investors, but as the economy worsens, investors are having a harder time finding the funding needed for continued purchasing. This is a great article highlighting where the MBA stands and how the Center for Responsible Lending, a non-profit that protects consumers from abusive lending practices, views the current situation.
The Mortgage Bankers Association (MBA) reported this week that a record number of loans — 1 in 7 — is delinquent, up from 1 in 10 a year ago. The numbers also show that 1 in 22 families in the United States is in the process of losing their home, up from 1 in 34 this time last year.
Based on these figures, the Center for Responsible Lending says the industry is on track for 2.9 million foreclosure starts in this year alone.