Bank Foreclosure Sales Rising in Louisville, Kentucky

by Donald Hanz on cities

The number of homes in bank foreclosure sales scheduled for the coming months in Louisville, Kentucky has been increasing, based on foreclosure data from the Jefferson County Circuit Court.

Court officials even contend that the total foreclosures by the end of 2009 will hit a record level for Louisville because of the rising unemployment rate throughout the city.

According to Dan Albers, Jefferson County master commissioner, officials handling home foreclosures expect more foreclosures in the next 12 months because of the rising number of people without jobs.

Out of the 4,377 foreclosed properties scheduled for sale, about 2,142 will be sold off, according to Albers. He said that some homeowners are able to rescue their homes before the properties get sold.

Albers also said that Louisville reached its record number of foreclosure sales in 2007, when it sold a total of 2,093. Sales dropped slightly in 2008. If his prediction of 2,142 units will be sold off, Louisville will break its 2007 record foreclosure sales.

According to Uric Dufrene, financial economist for Indiana University Southeast, the 10.3-percent jobless rate of Louisville has been driving the rise in mortgage defaults in the city, pushing more homes into bank foreclosure lists.

Dufrene said that the number of homeowners who have missed at least 3 monthly payments in Louisville in the second quarter has risen, compared to the same quarter in 2008.

Kentucky and Indiana were both hit by job cuts in the manufacturing sector, with their unemployment rates both surpassing the nationwide August unemployment rate of 9.7 percent and the September rate of 9.8 percent.

Kentucky’s jobless rate increased in August to 11.1 percent while Indiana’s rate rose to 9.9 percent.

Compared to other cities, the foreclosure rate in Louisville was lower during the first 6 months of this year, based on data released by a research firm.

But foreclosures are affecting lower-income families, especially single mothers who have to work, care for their children and study at the same time to improve their income-earning abilities.

What worsens their situations is the reluctance of lenders to help them weather the recession. One single mother whose home loan was modified to a lower monthly payment recently received a letter from her lender that it is proceeding with foreclosure despite the successful modification.

The state of Kentucky and the city of Louisville have launched their own efforts to help troubled homeowners, but their efforts have not prevented many homeowners from going into bank foreclosure.