Foreclosures Rise 34 Percent in Connecticut

The nation's foreclosure situation has improved, but the news in Connecticut is less positive.

Nationally, foreclosures are at a five-year low. That’s not the case in Connecticut, according to RealtyTrac, which reports 34 percent increase in foreclosures from the previous. The real estate information company attributes the increase to Connecticut’s court-based foreclosure process.

Twenty-five other states share a similar judicial foreclosure process, and thirteen of those bucked the national trend and saw more foreclosures. 

Foreclosure filings totaled 180,427 in the U.S. in September, down 7 percent from August and 16 percent from September 2011. The last time the foreclosure rate was so low was in July 2007.

“We’ve been waiting for the other foreclosure shoe to drop since late 2010, when questionable foreclosure practices slowed activity to a crawl in many areas, but that other shoe is instead being carefully lowered to the floor and therefore making little noise in the housing market — at least at a national level,” said Daren Blomquist, vice president at RealtyTrac, in a written statement.

He added, “Make no mistake, however, the other shoe is dropping quite loudly in certain states, primarily those where foreclosure activity was held back the most last year.”

Connecticut recently won a $1.5 billion settlement from banks, and the money is earmarked to go to people who had their homes foreclosed.

Ellen O'Shea October 13, 2012 at 10:57 AM
Sometimes banks don't make wise decisions. My next door neighbors lost their jobs. He because of a back operation and she because the company was downsizing. They took good care of their home and did many improvements. Unfortunately, the bank wouldn't work with them to lower their mortgage. The house has been vacant for months. The pipes broke upstairs and flooded the first floor. Now the house is full of mold and will take thousands of dollars to get it back into livability. What a waste to both a good family, down on their luck, and the bank that is losing money each day the house is vacant.
See the truth October 13, 2012 at 01:24 PM
The banks are doing nothing. They used all our tax money to secure massive bonuses and none of that money "trickled down" to those who need any of it. Relieving the wealthy of tax burden does not help the less fortunate because money doesn't go downhill unless it's a write off.


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