mortgage modification

Connecticut homeowners facing foreclosure may be interested in a recent headline about the housing crisis of 2007 and how mortgage servicers are attempting to clean up their acts. During the crisis, countless homeowners were subjected to messy processes that often resulted in serious damage, including inappropriate foreclosures Those currently facing foreclosure may now have more options, thanks to the federal government stepping in and beefing up industry standards.

As part of a multi-state settlement with some of the biggest lenders in the nation, many Connecticut homeowners may have some amount of debt relief coming to them. Part of the settlement includes a deal to reduce the principal on many mortgages across the nation. Moreover, Bank of America also announced a separate deal to write down underwater mortgages of about 200,000 homeowners to market value.

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.

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.

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.