Connecticut Foreclosures Set To Rise

Inside Connecticut Real Estate

According to RealtyTrac who tracks Foreclosures nationwide Connecticut Foreclosures dropped almost 50% in 2011. Perhaps related to the "robo-signing" scandal of 2010 the context of that number may be skewed. Now removed from those dark times, but not free from the swollen market of distressed homes those numbers may jump with the new year and therefore there are a lot of opportunities for both Homebuyers and Real Estate Investors alike.

Those lower numbers haven't meant a lack of fillings for re-fi's, loan re-modifications or lenders pursuing Foreclosures against defaulted homes, but rather a slow down in the willy nilly nature of the rushed through process under the previous negative scam. Not that that is all done and over with it seems as it lenders are going to push proceeding through properly and more timely in 2012. According to a report by Kenneth Gosselin in the Hartford Courant "there were 1,263 Connecticut properties with filings in December, or one for every 1,145 households in the state. That compares with one for every 634 households nationwide". That means there was a surge at the end of the year and while one month of increased numbers is not quite a trend, it signals changes to come.

The growing flood of more Foreclosures is a sign of overall market weakness since foreclosed homes pull down the value of surrounding properties. Although median home sales numbers have been way down for Connecticut in general, the amount of Foreclosures and REO's might signal a hot market for potential investors. As for homeowners who are in default or under duress, several lenders such as Bank of America are doing mass modification events to try to help some communities out. Look out for these events if you are under water or feel you are in danger of losing your home in the near future.