News / Law
First quarter foreclosure filings surge in Connecticut
Foreclosures in Connecticut rose by 38 percent in March over statistics from last year, signaling that the backlog resulting from the robo-signing scandal is clearing up.
Real estate experts predicted that foreclosure filings would increase this year after mortgage servicers reformed their paperwork practices. The 26 states where default notices can be challenged by a foreclosure attorney in court saw the biggest increases, with Connecticut ranking high on the list.
The only state with a higher increase in default notices was Indiana, which experienced a 45 percent increase.
Connecticut had one foreclosure notice for every 435 households, which gives the state a ranking of 27th nationally. Arizona is number one in foreclosures with one in every 95 homes receiving a default notice.
Despite the $25 billion mortgage settlement reached with country’s five largest banks, many homeowners are not getting the foreclosure relief they need.
Last year, amid declining foreclosure notices, RealtyTrac warned consumers that loan default rates and short sales would begin to rise in 2012 as banks began to clear up their backlog.
Homeowners who live in states that allow foreclosure lawyers to contest a notice of eviction in court must take action quickly in order to get debt relief. A troubled homeowner can ask for a mortgage modification or offer their home for short sale to prevent foreclosure.
A rise in foreclosures will continue to bring down home prices, so it benefits all homeowners to retainforeclosure attorney and find alternatives to defaulting on a mortgage loan.
