Foreclosure filings in many U.S. regions appear to be on the rise in 2023, according to information provided by ATTOM Data Solutions. Unfortunately, Connecticut is among ten states with high foreclosure rates.
From Jan. through June of 2023, nearly 2,500 properties in Connecticut were involved in foreclosure filings. What is behind this disturbing trend, and what can you do to defend against foreclosure?
3 factors leading to more foreclosures
The increase in foreclosure filings stems from several factors, including those discussed below. Once you determine what is barring you from paying your mortgage, you may be able to address those areas and improve your economic circumstances.
- Increasing interest rates: Interest rates for mortgage loans have steadily increased for much of the year. Higher rates make it more difficult for homeowners to afford their mortgage payments.
- Severe inflation: Everything in 2023 is more expensive, which can erode the purchasing power of homeowners. Inflation can be devastating enough to disrupt the ability of homeowners to pay their mortgage obligations.
- Ending forbearance programs: Most government forbearance programs that helped homeowners with their mortgage payments have ended. Those who relied heavily on these programs may now be facing foreclosure.
The increase in state foreclosure filings is a worrisome trend, especially for those struggling to meet their financial obligations. However, there may be options to help you avoid losing your home. For example, it may be possible to defend against foreclosure in court.
Instead of accepting your fate, consider obtaining a legal opinion. It could open the door to several opportunities allowing you to address your debt and possibly keep your family home.