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State's foreclosed properties increase

A surge in new foreclosure filings boosted Kentucky to 35th among the states in July, up from 39th in June, RealtyTrac reported Thursday.

A California firm that tracks foreclosures nationwide, RealtyTrac said there were 1,226 new filings in July in Kentucky, which equals one for every 1,540 households in the state.

Nationally, the July average was much worse: One filing for every 464 households, RealtyTrac said.

Kentucky had 67.7 percent more foreclosures initiated in July than in June, and 90.4 percent more than in July 2007.

Nationally, new filings were up 7.85 percent from June and 55.1 percent from July 2007, RealtyTrac said.

”Bank repossessions, or REOs, continued to be the fastest growing segment of (nationwide) foreclosure activity in July, posting a 184 percent year-over-year increase — compared to a 53 percent year-over-year increase in default notices and an 11 percent year-over-year increase in auction notices,“ said James J. Saccacio, CEO of RealtyTrac.

”The sharp rise in REOs, combined with slow sales, has resulted in a bloated inventory of bank-owned properties for sale,“ Saccacio said.

His firm has more than 750,000 properties in its REO database, which is 17 percent of the existing homes listed for sale in June by the National Association of Realtors.

Nevada, California, Florida, Arizona and Ohio were the top five states in foreclosures in July while the states with the fewest new filings were North Dakota, Mississippi, South Dakota, West Virginia and Vermont.

Other states bordering Kentucky were: Illinois, 12th; Indiana, 11th; Missouri, 18th; Tennessee, 13th; and Virginia, 10th.

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