On Connecticut Housing: Is the Foreclosure Crisis Behind Us?

This has already been going on longer than it should, but the short answer, unfortunately is NO. Surprisingly there are not that many available foreclosure properties that are even listed for sale right at this moment.  Take a look at this Alphabetical list by Towns of Upcoming Foreclosure Auctions for the entire state of Connecticut. Based upon all that anyone even having a remote clue as to how many foreclosures there are, will most certainly be surprised at how few sales are being conducted.

Considering that we already know how much of this type of inventory is going to be coming on the market in the next few years, it seems like slow torture.

Zillow contends that more than one in four American homeowners were "under water" or owed more than their homes were worth in the final quarter of 2011.

Foreclosures were stalled in 2011 due to "robo-signing" scandal, where foreclosure documents were signed without the proper review of individual cases, which prompted banks to hold back on new foreclosures. In February, five major banks struck a settlement on the scandal that covered 49 states.

Unfortunately, indicators are that the pace of foreclosures is starting to pick up again,  and may even surpass the number of actions that were begun in 2010.

RealtyTrac (foreclosure marketplace) estimated that foreclosures in January and February rose significantly in 21 states from 2011,  and jumped over 40 percent from last year in a number of major cities. Most housing experts believe this will delay any type of sustained recovery within the next two to three years.

I would tend to agree. Last year's scandal and ensuing settlement held the dogs off, but that couldn't last forever.

The market still has a long way to recovery. Sure, we will see pockets of normalcy, but until the foreclosure crisis is even nearly over, it simply can't happen. If you are nearing crisis levels on your home, or know someone who is,  be proactive now.  The market is not expected to come back soon enough to bail you out.

If you need help keeping your home, contact your attorney and/or bank or any VERIFIED state agency.

PLEASE Be careful of the multitude of scammers out there who will take your money while saying that they are trying to help you, and don't.

And a note From Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.