SOUTH MEMPHIS, Tenn. - The 38106 zip code is one of the oldest zip codes in Memphis, and the latest year-end home equity report from Attom Data Solutions shows more than 60 percent of the homes in this South Memphis neighborhood are “seriously underwater.”
“In that area that where the lenders don’t want to take those mortgages back, even when they’re foreclosed on them because the value is not there,” said Cheryl Muhammad, Assured Real Estate Services.
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Muhammad said this zip code never recovered after the recession and now homeownership is down to less than 40 percent.
Currently, Muhammad said this trend isn’t affecting the rest of the Memphis housing market, but she said this zip code could bounce back if it got more attention.
“If a lot of the investors in Memphis would get together and make a concerted effort to buy in that area, rehab and fix them up, you probably can’t sell them right now, but it can be an affordable rental properties at this time,” she said.
Since this is an older neighborhood, Muhammad said most of the original homeowners have passed away and their children or grandchildren aren’t interested in keeping the homes, so often times they’re left abandoned.
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