Foreclosed House Setting Records at Auction Sales in Kentucky

The number of houses sold at an auction is increasing each day in Fayette County, and new records are set after every sale of a foreclosed home.

Clyde L. Stapleton, who works as a Master Commissioner for Fayette Circuit Court, is quite sure about breaking the old record of housing sales in his next sale. Stapleton says that by October 22 this year, his agency will sell approximately 628 houses. This figure is 11.9 percent more than last year. In 2006, his office sold 562 homes. He is very certain that the figure will cross 750 by this year-end with few more sales occurring after October 22.

Stapleton finds the right home, which will give his agency good returns, very easily. This is happening because of the current downturn in the housing industry, and a tremendous increase in adjustable-rate mortgage interest rates, which are causing a credit crisis and making homeowners incapable of paying their monthly mortgage payments. Moreover, personal problems like unemployment, divorce, health related issues etc are also causing additional problems contributing towards losing homes to foreclosure. Stapleton believes that lenders were never rushing to court to solve property related matters the way they are doing now.

As per the Stapleton’s observations, records are set every year in Fayette. A situation similar to this increase in foreclosures can be seen across the nation.

California based real estate tracking company RealtyTrac’s recently released data confirms the nationwide spread of foreclosure. Two months ago in July, the number of foreclosures was highest in Nevada, Michigan and Georgia. Nevada was at the top for seven consecutive months. In Nevada, there is one foreclosure for every 198 houses.

However, in Kentucky the figures were conservative compared to other places, according to the data of RealtyTrac. In July, Kentucky ranked 33rd in the list of foreclosures with 645 foreclosures in its profile. However, when compared with its own records, its figure is 19 percent more than last year. The ratio of foreclosure in Kentucky is one fresh foreclosure for every 2,896 houses.

According to Stapleton, there were many foreclosures initiated by lenders in Fayette County that were not completed. He assumes that in those cases borrowers might have paid their outstanding amount through refinancing of their properties. Borrowers get six to seven months time before foreclosure proceedings actually get over, said Stapleton.

Each auction and the property sold in the auction have to be advertised first. This adds to the cost of the agency. However, serious bidders collect this information from the website of the agency, said Stapleton.

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