Lis Pendens Foreclosure Cases Rose in Kentucky Courts
Courts in Kentucky in 2010 had to deal with increased number of lis pendens foreclosure cases. A recent report has revealed that court caseloads in the region jumped by nearly 10%, with more than 20,000 households having to deal with foreclosure during the year. The biggest increase was recorded in the region of Northern Kentucky.
The number of foreclosed homes in Louisville and in the rest of the state increased considerably last year based on the caseloads handled by local courts. The recent data showed that courts in the region had to deal with a 9.3% rise in caseloads for households facing foreclosures which reached a total of 20,111. The Northern Kentucky region posted the biggest caseload increase, with the area posting a rise of 13.7% in 2010 to reach a total of 2,528 cases.
Two counties accounted for a huge percentage of Kentucky foreclosure listings in 2010, with Kenton and Campbell both accounting for one case for every eight foreclosures. The same problem encountered by Kentucky courts was also experienced by courts in the neighboring area of Greater Cincinnati. Combined, Northern Kentucky and Greater Cincinnati posted a foreclosure rise of 1.1% during the year, totaling 15,102 cases in 2010. The figure conflicts with the reported 4% decline for the whole state of Ohio which had 85,483 foreclosure cases in 2010.
Data also showed that in the past two years, the number of lis pendens foreclosure cases in Northern Kentucky that accounted for Greater Cincinnati’s caseloads has doubled, rising to 16.7% in 2010 compared with 2008 when the Kentucky region’s foreclosure numbers only accounted for 8.2% of Greater Cincinnati’s caseloads. The recent report was highlighted amid studies that federal programs for mitigating foreclosures failed to meet expected targets.
The report has also revealed that among homeowners in Kentucky and Ohio who got a mortgage modification during the 2010 second quarter, one for every five re-defaulted by the last few months of 2010. Kentucky, according to a report from the Office of the Comptroller of the Currency and the Office of Thrift Supervision, posted a re-default rate of 25%, with huge numbers of homeowners who were able to secure loan modification still ending up losing properties as foreclosure homes.
In the fourth quarter of last year, 1,367 homeowners in Kentucky were able to avoid lis pendens foreclosure by having their loans modified. However, given the high percentage of re-default in the state, analysts have stated that it is highly possible that the borrowers who were able to get modification will re-default in the coming months.
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