Foreclosures In Connecticut Seem To Be Slowing Down

By
Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

The Hartford Courant ran a article last week reporting that Foreclosures In Connecticut Seem To Be Slowing Down after they skyrocketed in July.   While this is good news, it does not mean that we are not continuing to see increases in foreclosed properties in Connecticut.

It is important that when we see news articles like this that we do not over react one way or another.  We need to be careful, because "foreclosure activity in 2011 was artificially low", in 2011 as a result of the investigations, and court cases that were going on because of "robo-signing".  So 2011 is not a good indicator to measure foreclosure activity by, however, it does provide excellent shock factor for the New Media.

What I came away with from this article is that July had a very high number of reported forclosures, but that since then the numbers have been declining, and that is a good thing.  How good a thing it is, only time will tell.

The article did point out one more statistic that I found interesting, and that was that Connecticut did not follow the National trend.  While Connecticut is reporting a slight increase in foreclosure fillings, Nationally foreclosure fillings are down by 16%.  The article did not go into any reasons for this difference, but it would be interesting to know why the big difference between Connecticut, and the National average.

So while Foreclosures In Connecticut Seem To Be Slowing Down, it appears that Connecticut still has a long way to go before we get to where we need to be.


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 Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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Rainmaker
2,466,689
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

I'm glad that things are going in the right direction, but you're right, sometimes there is a lot of media hype, and we need to be sure not to overreact.

Oct 16, 2012 11:06 PM #1
Rainmaker
1,257,855
Al & Peggy Cunningham, Brokers
RE/MAX West Realty Inc., Brokerage - Brampton, ON
Our Family Wants To Help Your Family!

Good news, bad news right George?  Hopefully Conneticut will follow the National trend very soon. It would be interesting to know what is the reason for the difference though.  We listened to an economist yesterday and while his facts were interesting, his forecast for the future was a little scary. 

Oct 16, 2012 11:06 PM #2
Rainmaker
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Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

George, maybe those days of foreclosures in every neighborhood are over.     Wonder if the shadow inventory some talk about will show up?

Oct 17, 2012 12:00 AM #3
Rainmaker
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Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I keep hearing a reading the same information, but not what I continue to be told by foreclosure firms that I do business with. I keep being told that the biggest number of future foreclosure will come from FHA loans.

Oct 17, 2012 12:51 AM #4
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Debbie, I did not really know how to react to this one, whether to take it as good news or bad new, especially since the data could be impacted by the robo-signing.

Al and Peggy, scary seems to be what the news media does best, scary sells. The problem is that those not in this business just take what they say at face value.

Joan, I don't know, but I keep on hearing about the shadow inventory as well.

Joe you might be right, we might not seen the worst when it comes to foreclosures.

Oct 17, 2012 03:08 AM #5
Rainmaker
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Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

George - I was so excited to get an ActiveRain referral for a very nice home in Fairfield yesterday.  As I was talking to the referring agent, who thought this might be a short sale.  I quickly checked on the Judicial website and not only was the home in foreclosure, it had already been foreclosed upon and there was a deficiency judgment.  The agent kept asking me if I wanted to talk to the "seller."  LOL  What seller?  This is now an REO property.

The foreclosure action had started in 2009 and the seller never retained an attorney.  There is absolutely nothing I can do for her now.  It does show you how long a foreclosure can take even without an attorney involved in Connecticut.  If she had done a short sale or a Deed in Lieu, she could have avoided a deficiency judgment.

Oct 17, 2012 10:39 AM #6
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Ed Silva
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George, I am ion the pipeline to get short sale activities from several banks. Some of the homes have mortgages that have not had a payment in 3-4 years yet the banks have not foreclosed.

My belief that with the leniency that the banks are offering has to be a value for them from the government to help the homeowners whether with loan modifications, which are rare or with a short sale. How else can you explain a bank that hasn't gotten a payment in years allowing the sellers to short sale the house, give them a relocation stipend, pay down outstanding liens and waive the deficiency. Banks never are that charitable on their own

Oct 17, 2012 12:06 PM #7
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Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

George  Having a dip in foreclosure is a good thing.  As you righly pointed out many of these news report fail to provide the full story.  Time will tell .

Oct 17, 2012 12:43 PM #8
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Joni Bailey
Berkshire Hathaway Home Services - Anderson Properties - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

I learned a long time ago not to trust 90% of what I hear on the news. They say what sells. :(

Oct 17, 2012 01:34 PM #9
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Gail I have been a little more involved in that process lately because of helping out with the EMAP program that I want to blog about soon.  I have found it amazing what Lenders need to go through before they can even start the foreclosure process.  Most people seem to think that a Lender just gets up in  the morning and decides to foreclose on a homeowner, but is far far from the reality.  By the time a Lender finally forecloses on a homeowner it is usually 2 plus years, and the homeowner is not paying not only the mortgage, but taxes, insurance, and the late fees keep on pilling up.

Ed you would think so, but it is not.  It is the process that I just commented on to Gail that causes that long time period.  During the whole time the Lender is taking some huge loses, foreclosure is not good for anyone.  Also you would think that homeowners that are not making a payment during this time would use the money to catch up on other debts.  Some do, but those that got in trouble because of financial mismanagement, just keep on finding more things to buy and go further and further into debt.

Jennifer, unfortunately that is true, but it is the hype that sells the news.

Joni you hit the nail on the head.

Oct 17, 2012 11:35 PM #10
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