On behalf of Law Offices of Mark M. Kratter, LLC on December 18, 2012
Foreclosure proceedings can be nerve-wracking and upsetting for homeowners in Connecticut and elsewhere. Although there is an expected bounce in the housing markets, some are speculating the crisis may not be quite over yet. Home sales across the nation in October reportedly reached a five year high, up 11 percent from 12 months ago. While the positive reports have even experts believing the foreclosure crisis may be over, these numbers reflect nationwide figures and not local numbers, which is where foreclosures have been the most active.
The crisis has affected almost four million homes. When the robo-signing scandal hit in 2010, lenders delayed foreclosures, causing the numbers to decrease artificially. In 2011, 830,000 homes were affected by foreclosure, reflecting a 24 percent decrease from the year prior. National numbers show a reduction of 19 percent in foreclosure filings. While lenders are beginning to implement more effective 'foreclosure-prevention policies,' the second wave of foreclosures many experts thought could be avoided may actually be occurring in states where the backlog is highest.
Connecticut has not shown much improvement through the years unlike other states. Several other states are in the same predicament, and many locales within the nation have significant rates of delinquent mortgages. In Connecticut, many homeowners have mortgages overdue by at least 60 days.
Connecticut home owners struggling to make their monthly mortgage payments may want to consider bankruptcy as a responsible solution. Foreclosure is a difficult process to go through, but taking the time to critically view one's financial status could prompt a need for assistance with any underlying money woes. Bankruptcy can help homeowners discharge some of their debts and sometimes even retain their assets. Speaking to a knowledgeable party can help owners decide approach may be most advantageous to them.
Source: Forbes, "The Foreclosure Crisis Isn't Over Just Yet," Morgan Brennan, Dec. 1, 2012
