Owning a home can come with any number of emotions, from joy about being free of landlords to frustration over dealing with unexpected home repairs. However, one emotion most people in Connecticut probably hope to never face is despair over home foreclosure. Luckily, foreclosures are happening far less frequently than they have in recent years.
The number of mortgages that are at least 30 days past due are at their lowest rate in 20 years. Only 4% of mortgages fall into this category, down nearly a full percent from Jan. 2018. The number of properties landing in foreclosure inventory also dropped down to 0.4%, which is another 20-year low.
Before the housing crisis, foreclosure rates were at 0.6%, so current homeowners are faring better than they were shortly before the recession. Experts credit this reduction in past due mortgages and foreclosure rates to an increase in home values. Homeowner equity is also at a record high, and in combination with steady wage growth most people are handling their mortgages quite well. Lower mortgage rates are also helping keep foreclosures relatively low.
Unexpected financial disaster can strike at any time, even if the economy is faring well and a Connecticut homeowner is earning a decent income. Whether through the slow accumulation of debt or a sudden and unexpected financial hit, homeowners facing foreclosure may feel lost and unsure of how to proceed. While bankruptcy is often effective at temporarily halting foreclosure proceedings, there are also other options, including negotiating directly with lenders. Confused homeowners can generally turn to experienced counsels for guidance when dealing with this type of difficult situation.