CT Residential Foreclosure Activity Surges In July

by Categorized: Foreclosure Sales Date:

Connecticut homes with foreclosure filings surged nearly 46 percent in July compared with a year ago, a new report today shows, as filings previously delayed when lenders were forced to tighten foreclosure procedures are again moving through the court system.

In July, Connecticut residential properties with filings rose to 2,247, according to a report from RealtyTrac, which tracks and markets properties in foreclosure. Connecticut logged the fourth highest increase in the nation in July and the sixth consecutive month with a year-over-year increase.

The jump in Connecticut compared with a 32 percent decrease nationwide, RealtyTrac reported.

The robo-signing scandal in October, 2010 involved some of the nation;s largest lenders, who signed off on foreclosure documents without verifying their accuracy. A wide-ranging investigation by state and federal officials resulted in settlements in the tens of billions. The investigation delayed foreclosures as lenders were forced to review and later change their procedures.

The delayed impacted Connecticut and other states with laws that calls for foreclosures to be handled by the courts. Roughly half the states in the country have such laws.

RealtyTrac has said it expects filings in Connecticut to increase through the rest of the year as delayed foreclosure filings enter the court system.

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