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.

Even though home sales are up in Central Kentucky, overall foreclosures continue to climb.  According to the Courier-Journal, foreclosures are up 12% for the third quarter of 2009, as compared to the third quarter of 2008.  The article goes on to forecast that the unemployment rate is still the biggest contributor to the foreclosure rate and that it is not likely to peak until sometime next year.  Even it is does peak next year, that is certainly no guarantee that employment will increase, because we are most likely going to have a jobless recovery.  In Kentucky, we are losing coal in the east, tobacco all over the state, and our car industry is down.  If we don’t find new industries or at least try to attract some new businesses, we will be in for a very long and slow recovery to say the least.

A new report out shows that home prices are rising slowly again, but still below the market average from last year.  Overall, the Standard&Poor’s/Case-Shiller home price index is up 1.2% nationally.  However, home prices nationally are still 13% below last year.  This article makes a great point that once the Federal tax credit for first time buyers expires, if the unemployment rate continues to rise, and if this is a jobless recovery, will the market be able to sustain itself?

All of these factors may lead to increased foreclosures.  Read the full article.

Stay tuned for more.

Anyone have any thoughts?

See the Kentucky Office of Employment and Training’s unemployment figures here.

Nationally, the U.S. Department of Labor reports that the unemployment rate has risen to 8.5%, with a total of 663,000 jobs being lost.  More layoffs are not only possible, but continue to be likely.

How safe is your job, let us know, leave us a comment.

The AP is reporting that unemployment figures rose in every single county in Kentucky. The highest unemployment rate at 18.9% is Menifee County. The county with the lowest unemployment rate at still a healthy 7.4% was Fayette County.

The average statewide rate was 9.2%. This is the highest statewide average in over 2 years. This is also higher than the national average.

This of course, indicates that the statewide foreclosure rate will hold steady for awhile.