Kentucky foreclosures skyrockets in Sept., to 7th. highest in nation

A national survey has ranked Kentucky 7th in mortgage foreclosures based on September data, according to the Kentucky Office of Financial Institutions. 

The Mortgage Bankers Association survey–which only includes data on foreclosures made due to loan nonpayment, not tax nonpayment–showed that 2.13 percent of the state’s 441,478 mortgage loans were in foreclosure, compared to 1.9 percent at the end of June, OFI’s Cordell Lawrence told the House Banking and Insurance committee today. 

That is a gloomier picture than the one reported last month by the firm RealtyTrac, which bases foreclosure data on the number of households in each state. Kentucky ranked 35th nationwide in foreclosure activity for the month of November based on RealtyTrac’s data, Lawrence said.   

Kentucky had 758 foreclosure filings in November –or one for every 2,461 households– according to RealtyTrac, compared to 1 foreclosure per 307 households in Ohio and 1 per 282 households in Florida. 

 

“What I take from this is in Kentucky, more people own their homes and don’t have a loan against it,” Lawrence said. 

 

Improvements to the overall market may come later this year when millions of adjustable rate mortgages and other loans are reset and other steps are taken to mitigate the situation, Lawrence said. Doing more nationally to ensure that homeowners can pay on their loans could also help, he added. 

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