Foreclosures on Rise While Prices Still Falter
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WHILE most of the Connecticut economy languishes, one sector is thriving. Lawyers, auctioneers, real estate agents and others involved in foreclosures are doing a booming business. Four years ago, when real estate prices in Connecticut were at an all-time high, about 20 mortgages of every 1,000 were in foreclosure. But as real estate prices plummeted and many people lost their jobs, foreclosures have now soared to 159 for every 1,000 mortgages, the fourth highest rate in the nation, according to the Mortgage Bankers Association. But the worst might be over, accoring to Thomas E. Hylinski, first vice president at People’s Bank in Bridgeport and a vice president of the Connecticut chapter of the Mortgage Bankers Association. He said that in the last few months he has seen a decline in the number of delinquencies: at the start of the third quarter in July, 30-day delinquencies were down 10 percent and 90-day delinquencies were down 30 percent. “The fact is, the loss of jobs has stopped growing, things seem to be getting better,” Mr. Hylinski said. Others aren’t so sure. Jeffrey L. Briggs, senior vice president of loan services for Centerbank Mortgage Company, a subsidiary of the Waterbury-based Centerbank, said the things that were driving the process — layoffs, wage and benefit concessions, among them — were still plaguing Connecticut. As more people lose their homes, there are fewer people to buy the houses coming on the market through foreclosure and normal turnover, he said. That means the people and banks trying to sell must reduce the price even further, putting more mortgages at risk. In better times, those who could no longer afford their mortgage payments could sell the property and move to less expensive quarters, he said. More : query.nytimes.com |