July numbers lower than June, higher than ’06
New mortgage foreclosures dropped significantly in Kentucky in July, bucking the national trend of rising filings by lenders.
The state had 644 foreclosures started last month — 20 percent fewer than in June but 19.7 percent more than in July 2006, RealtyTrac reported yesterday.
Nationally, 179,599 foreclosures were filed last month. That was 9.1 percent more than in June and 93.4 percent more than in July 2006, said RealtyTrac.
The national wave of foreclosures didn’t reach Kentucky and other parts of the country until late summer or early fall of 2006.
A foreclosure is started by a lender when a home buyer falls behind in monthly mortgage payments. The lender goes to court to have the house sold at auction to recoup the loan money.
New filings in Kentucky increased by 10.4 percent in June after declining about 1 percent in May.
RealtyTrac, a California company that compiles foreclosure data nationwide, said the July filings in Kentucky were equal to one for every 2,897 households. The national average in the month was much worse at one for every 693 households.
The nation’s highest rate — one filing for every 199 households — was in Nevada for the seventh month in a row. The lowest rate was in Vermont, with one filing for every 34,149 households.
RealtyTrac CEO James J. Saccacio said 43 states had year-over-year increases in July, but more than half the nation’s new filings came from just five states: California, Florida, Michigan, Ohio and Georgia.
A handful of states reported fewer filings in July than in July 2006, he said. Those states could be benefiting from purchases by real estate investors “who have pulled out of more volatile markets where home price appreciation seems to have hit its peak for the time being.”
“In contrast,” Saccacio said, “states like Texas, South Carolina and Utah have seen slow but steady price appreciation over the past five years, making them much more attractive and affordable.”
