Bankruptcies, Cheap Foreclosure Homes Soar in Utah

Cheap foreclosure homes continue to spread like epidemic in Utah. In August, there were 17,474 foreclosed properties recorded, making it one out of 302,534 households receiving at least one foreclosure filing.

Compounding the problem is also the dramatic increase in the number of bankruptcy filings. According to industry experts, the languishing economy and high unemployment rate are taking its toll on Utah residents, with many of them struggling financially.

According to data released by the U.S. Bankruptcy Court, Utah reported almost 10,706 petitions for bankruptcy from January to September this year. The figures represented a staggering increase of 62 percent compared with the same period a year ago.

The only consolation that Utah has is it is not the only state that is suffering from a high number of cheap foreclosure homes and bankruptcies. Nationwide, bankruptcy filings rose above the 1 million level from January to September this year.

The American Bankruptcy Institute noted that this year’s bankruptcy numbers have reached six figures, the first time since the reform of the bankruptcy laws in the country in October 2005. Industry experts said that bankruptcy filings will continue to rise on a nationwide scale as consumers try to protect themselves from the consequences of increasing housing debts and unemployment rates.

They also said that many state residents are now seeking help to save their houses from foreclosures. They advise troubled borrowers to seek counseling if they are considering filing for a bankruptcy.

Under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, those who are planning to file a bankruptcy should undergo credit counseling before filing. And before a bankruptcy case can be dismissed, the distressed borrower should also take and complete a financial-management course.

Many agencies in Utah are providing free counseling to people who are trying to save their homes from foreclosures and who have become unemployed. However, many of those who seek counseling are already at the end of the rope, meaning that they were already overextended even before they have lost their jobs.

Meanwhile, industry experts also noted a significant rise in the number of Utahns who are facing debt obligations in relation to their businesses.

But still, personal bankruptcies dominated the filings in Utah, making industry experts anticipate more cheap foreclosure homes in the future.

Related Posts:

• High Unemployment, Foreclose Rates Pummel Utah
• Increase in Bankruptcy Filings to Stop House Repossession
• Expect More Repossessed Houses for Sale in Utah
• Unemployment Drove Foreclosed Properties to Rise in Nevada
• Counties Stressed by Foreclosure, Bankruptcy and Unemployment