Louisville Still Suffering From Housing Mess, But Bankruptcy Stops Foreclosure

Recently released mortgage foreclosure numbers by the foreclosure monitoring website RealtyTrac reveal that Jefferson County and Louisville in particular are facing a difficult time in dealing with houses that are being taken away by banks.

The company’s data shows that in some parts of Louisville, 1 in 241 housing units were dealing with some type of foreclosure action in August. On a more detailed level, the 40216 zip code had 57 foreclosure actions, most in the city. The top five Louisville zip codes dealing with foreclosure in August:

  • 40216: 57
  • 40229: 50
  • 40272: 40
  • 40211: 37
  • 40218/40291: 34

The numbers don’t lie — people are hurting. Whether unexpected medical bills or job loss, many Louisville residents simply can’t pay their monthly mortgage payment. Even though they’ve spent years making payments and love the house they’re in, the banks are ruthless and are willing to do just about anything to maximize profits.
But there is help. Filing for bankruptcy in Louisville stops the foreclosure process dead in its tracks. Once a person files for bankruptcy, creditors and lenders are no longer allowed to contact them. Creditors are directed to deal with the bankruptcy court.

Consulting with an experienced Louisville Bankruptcy Lawyer is the first step someone in this position should take. These are difficult financial times and homeowners should get advise on how best to deal with the current economic client in how it relates to their homes.

More data from RealtyTrac for August:

– 4,569 foreclosed homes in Jefferson County, KY
– 1 in every 541 homes are in foreclosure countywide
– 608 foreclosures filed in Louisville alone
– 7,097 foreclosure homes statewide
– The average foreclosure sales price is $84,223
The Dow Jones Newswire is reporting that in the Louisville metro area, houses posted the largest foreclosure discount compared to non-foreclosure homes. RealtyTrac research found that prices here are 54 percent below the average for non-foreclosure homes. This underscores the problem with our real estate market and the fact that things aren’t changing any time soon.

When someone files for bankruptcy, creditors can no longer collect, yet homeowners often can stay in their homes while the foreclosure process is ongoing. In many cases, the homeowner can come through the bankruptcy process still keeping assets, such as vehicles that were purchased in advance of filing.

After the process is complete, an eligible bankruptcy client will have debts against them discharged and they can again begin to live life free from creditors hounding, wages being garnished and other harassing tactics taken by lenders and the collection agencies they employ. If you are tired of living in fear and frustration because of your credit problems, consult with an attorney today.

If you need to speak to a Kentucky bankruptcy attorney or Louisville foreclosure defense firm, contact the Schwartz Bankruptcy Law Center at 866-270-4495 for a free and confidential consultation to discuss your rights.

More Blog Entries:

Louisville Bankruptcy Can Provide a Fresh Start for Families, Children: August 17, 2011
Louisville Foreclosure Defense Attorneys Continue to Monitor Kentucky Real Estate Market: July 20, 2011
Additional Resources:

RealtyTrac: Distressed Sales Claim Larger Share of 2Q Total, by Drew FitzGerald, Dow Jones Newswires

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