On behalf of Law Offices of Mark M. Kratter, LLC on October 26, 2012
Connecticut foreclosure filings have finally slowed down. Although they are slightly up from 12 months ago, the overall news is positive compared to the high spikes earlier in the summer. In 2011, the number of foreclosure filings was listed at 1,278. This year, the number rests at 1,299.
This number is much lower than July of this year. Foreclosures during that summer month were listed at 1,544. This number was well over the 647 reported a year earlier. The sharp number increase in 2011 has been blamed on the landmark mortgage settlement that occurred prior in the year. Other states have also seen in jump in the number of foreclosures since the settlement occurred.
This could be because authorities slowed the processing of foreclosure paperwork while the investigation was ongoing. Once the investigation was completed and a settlement occurred, the numbers immediately jumped again. A spokesman for RealtyTrac stated the 2011 foreclosure activity was actually 'artificially low' due to the investigation. He continued to state that Connecticut may continue to see a rise in foreclosures, but he doesn't expect to see many more spikes than what occurred in July. September brought many first-time foreclosure filings.
Of the 1,299 that occurred, 880 were for first-time notices. Others included bank repossessions and foreclosure auctions. For Connecticut home owners in a foreclosure situation, it may help to look into bankruptcy, especially if they have debt in addition to their homes. Filing for bankruptcy could halt foreclosure proceedings and also stop debt collector harassment. When a homeowner files, lenders cannot foreclose or continue to attempt to collect debts until allowed to do so by the courts
Source: Hartford Courant, "Connecticut Foreclosure Filings Slow Down In September After Spikes This Summer," Kenneth R. Gosselin, Oct. 11, 2012
