Foreclosure

When the housing crisis hit Connecticut in 2008, many homeowners found themselves suddenly unable to meet their financial obligations -- often, through no fault of their own. Indeed, many homeowners who were fighting off foreclosure were the victims of improper practices by mortgage servicers like Citibank or Bank of America. These mortgage servicers were subsequently involved in a robo-signing scandal; that is, they were failing to properly review foreclosure documents, including even failing to verify their authenticity.

In these tough economic times, many Connecticut residents have become all too familiar with foreclosure proceedings. Whether it happens to a relative, a neighbor or themselves, many residents have been affected by foreclosures in one way or another ever since the housing crisis began in 2008. In that vein, readers of this blog may be interested to hear of the financial problems faced by the town manager of Enfield, Connecticut.

As the foreclosure crisis continues across the nation, some help may be on the way for Connecticut residents. On Jan. 30, the state attorney general and U.S. Rep. Rosa DeLauro held a joint news conference at the United Way in Milford to tout measures that may bring some relief and protection to area homeowners. The measures are designed to reduce frustration and to potentially avoid foreclosure in some cases.

The White House recently announced the creation of a new program that will hopefully help stem the number of foreclosure filings in Connecticut. The new program is called the Home Affordable Refinance Program and will hopefully allow more homeowners to refinance their mortgages before they are forced into foreclosure or short sales.

In our last post we discussed the drop in the national foreclosure rate and the importance of hiring a Connecticut foreclosure defense attorney if you have a delinquent mortgage or face hardship making your mortgage payments. More homeowners in Connecticut and around the country will face foreclosures in the coming year and the flood of these foreclosures is expected to depress the housing market.

Foreclosures have declined in to their lowest rates since the recession began according to new reports from the Associated Press. Although the number of foreclosures has dropped, 1.9 million homes still entered foreclosure in 2011. Foreclosure listing company RealtyTrac Inc. says that this is the lowest level of nationwide foreclosures since 2007.

Many Connecticut residents are painfully aware of the stress that can be associated with undergoing a foreclosure. Foreclosure can be an embarrassing and financially worrisome process, which is why it is important to contact an experienced foreclosure attorney who can help you stay in your home. Solutions such as lien stripping may help save a homeowner's properties and stop the foreclosure process.

The United States Attorney for the District of Connecticut sentenced a Connecticut man to 18 months in prison late last month. The man was found guilty of orchestrating a $4 million mortgage fraud scheme that eventually resulted in foreclosure on several of his properties. Following his imprisonment, he will be required to undergo three years of supervised release.

Everywhere you look in today's economy, Connecticut families are losing their homes to foreclosure. Unfortunately, some families have no way of avoiding foreclosure, and their only chance for financial redemption is to file for bankruptcy protection. But other families may have options available that can help them keep their homes.

Connecticut residents may be shocked to hear that in October, there was one foreclosure filing for every 1,127 households in the state. That grim statistic is nonetheless an improvement from last year, when foreclosure filings were about 38 percent higher. So although things are improving, too many residents are still seeking debt relief as they struggle with their financial obligations.