High Foreclosures Rate in Kentucky: Due to Slow Job Growth

In 2006, the state of Kentucky was among the states with the highest foreclosure rates. One in every 57 homes entered into some stage of foreclosure, according to the Mortgage Bankers Association. The organization also believes that the slow job growth contributed to the increasing number of Kentucky foreclosures. Compared to the nation's 2 percent job growth, Kentucky only posted 1 percent.

The situation was further worsened by rising interest rates and re-setting adjustable rate mortgages. Buyers, who were enticed by predatory lenders to purchase homes they could not afford, are now the ones struggling with mortgage payments. The sluggish housing market condition also put these homeowners in a position where they can't even sell their homes because in some cases, their mortgage debt is greater than the value of their homes.

All these circumstances create an opportunity for buyers and investors. Lenders in possession of Kentucky foreclosure homes are forced to slash prices in order to reduce their growing inventory. Homeowners with some equity on their homes are deciding to sell their homes to avoid foreclosure. They seek the assistance of experienced real estate brokers like ForeclosureConnections.com in order to attract buyers willing to pay their asking price. These buyers usually depend on reliable foreclosure lists for leads.

Local officials are also showing concern for the foreclosure trend. A stricter guideline for lenders is being imposed to make sure that only qualified borrowers can take out mortgage loans. This will protect borrowers and lenders as well. Many subprime lenders have already filed for bankruptcy and more lenders are feeling the pressure of not being able to recover the money owed them. In addition to this, they are also struggling with foreclosure proceedings costs and holding cots for the Kentucky foreclosures reverted to them from foreclosure auctions.