28 May Foreclosures Continue to Rise, But Some Areas Are Eerily Calm
Private statistics show that foreclosure filings continue to increase nationally. In April 2008, the number of homes facing foreclosure rose 65% over the same period last year. Nearly a quarter million homeowners received a foreclosure notice last month according to RealtyTrac, a company based in Irvine, California. Nonetheless, has the calm come before the real storm?
The numbers posted by RealtyTrac are nationwide, but some areas show little or no increase in foreclosures filed. Some observers have used that information to claim that the worst is behind us. The state of Connecticut, for example, reveals that 20% fewer foreclosures were filed in April of this compared to April of last year. That, say some, is an indicator that the local market is somehow immune to the mortgage mess or that the economy is more stable here than in other areas of the country.
Yet according to the Federal Reserve Bank of New York, 48% of all mortgages in Connecticut made a late payment within the last year and 35% of all mortgages in the state are delinquent. That is hardly the stuff of a stable economy or real estate market. More likely that the large numbers of foreclosures filed last year have left the lenders with a surplus of properties to sell, insure and pay local property taxes. So instead of foreclosuing the homes, they are willing to carry the loans in a delinquent status allowing the homeowner to stay without paying in order to avoid the liabilty of home ownership.