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Just recently bought the house in the middle Tennessee area and as going through the bed in front of the house, I noticed what I believe is fungus on the trunk that is stripping the bark from the front half. Is this tree fine? Or do I need to treat it with some kind of anti-fungus or something else? Or is it too late? Thanks.

Tree in question

Infected area

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By the time you see fungus on wood it is well established. Removing it would only get the growth outside the wood.

What the fungus is growing in is the dead tissue or heartwood inside the living cambium.

Many trees can be attacked by fungus in this way and ultimately the tree becomes hollow. This tree is actively trying to grow over the wound with the new growth on the sides.

I recommend taking no action. You cannot remove the fungus and any kind of "surgery" could easily cause more damage than help.

What no one can predict is whether the tree will compartmentalize the wound successfully or not. Just wait and see.

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