Year of Publication



Martin School of Public Policy and Administration

Date Available


Executive Summary

Problem Statement

Since 2006 the number of housing foreclosures has increased significantly. This increase is taking a toll on many communities across the nation, including Louisville, Kentucky. The percentage of delinquent mortgage loans in the Commonwealth of Kentucky has risen sharply, jumping nearly 3.5% since 2006, while the percentage of delinquent loans entering foreclosure has risen just as sharply according to the Kentucky Office of the Courts. The number of foreclosed properties proceeding to Master Commissioner sale has more than tripled between 2002 and 2008, to over 3000 foreclosures scheduled to take place. The number of foreclosures is negatively impacting the local, state and federal governments. Kentucky is expected to lose up to $3.4 million between 2007 and 2009 in property tax revenue due to the increases in foreclosures. Many homeowners are searching for a way to relieve their delinquent payments and the Federal Government is making many efforts to assist them. The National Foreclosure Mitigation Counseling program is one of those efforts.

Research Strategy

The research will utilize the regression model and a multinomial logit model to assess the foreclosure mitigation counseling program from the Housing Partnership, Inc.

  • Does the number of days delinquent impact mitigation success?
  • What role does the reason for default play in predicting when a household seeks assistance?
  • How is the National Foreclosure Mitigation Counseling program being marketed, including outreach efforts?
  • Are there any addition undetermined factors that could influence when a household contacts the Housing Partnership for assistance?

Major Findings

The findings from the regression model and the multinomial logit model suggests the foreclosure mitigation counseling program does not appear to be targeting or assisting the types of households who would most need foreclosure mitigation counseling assistance.


It is recommended that the Housing Partnership redefine its outreach efforts for the program to attract households before it is too late to avert foreclosure. It is also recommended that policy makers seek further analysis of the National Foreclosure Mitigation Counseling program to determine the true effectiveness. A further multinomial logit model should be estimated to determine the impact on different demographics of the households who seek foreclosure mitigation counseling assistance.



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