BluegrassForeclosure.com

RealtyTrac is reporting that foreclosure filings dipped in October, from September both nationally and in Kentucky.  From the Courier-Journal.

“In Kentucky, there were 1,164 homes in some stage of foreclosure last month, or one in every 1,638. That was down 9.84 percent from September, but more than double the rate of a year earlier.  Statewide filings have been up and down in recent months, with 1,234 in July and 1,101 in August before rising in September and falling in October.”

As pointed out, there are several factors contributing to the decline.  Mostly, it is a combination between banks evaluating each situation and scrutinizing it to determine if there is something that can be done.  Also, states are taking actions requiring more and more lenders look at mediation before judgment can be entered and the home goes to the auction block.  Finally, more and more work-outs are being performed, as each party is looking to try and save the deal.

As you can see, these are great band-aids to be placed on the problem, but none of them addresses the underlying problem, the fact that unemployment rate continues to rise slightly and seems to be holding steady now at about 10% with more and more people taking longer and longer to find a job.

We are still losing jobs, people are not being hired, and its taking longer to get re-trained for other jobs.  Plus, many states are beginning to look at budget measures whereby more and more folks are being added to the unemployment rolls, which is going to massively strain states’ fiscal year planning which will start soon.

Having said all that, the foreclosure rate may have dipped, along with properties that have actually gone to sale, but we are certainly not anywhere out of the woods yet and probably won’t be for awhile.