Connecticut Ranked 33rd in REO Properties Rate in May

Though the number of REO properties in Connecticut appears to be dwindling slightly, the foreclosure crisis in the state is still far from over.

RealtyTrac’s May 2009 U.S. Foreclosure Market Report showed that notices of foreclosure filings declined by about 50 percent compared with April figures and 20 percent below last year’s May level. The state ranked 33rd in terms of foreclosure filings in May, with one out of 398 houses under REO properties.

Topping Connecticut’s foreclosure activity in May were the counties of New London and Norwich, with 12 each. They were followed by Waterford and Ledyard with 6 each, 4 foreclosures in East Lyme while 2 each for Old Lyme, Colchester, Groton and North Stonington.

Among states in New England, Connecticut fared well than Rhode Island, Massachusetts and New Hampshire. Vermont and Maine have the lowest foreclosure rates among New England states.

Nationwide, foreclosure filings were received by 321,480 homeowners in May, a 6 percent decline from the April level but about 18 percent increase from the May 2008 total. This makes one out of 398 properties on the brink of becoming REO properties.

Leading the foreclosure rampage is the state of Nevada with one out of 64 houses receiving a notice of foreclosure, over six times the average national foreclosure rate.

Nevada is followed by California in terms of foreclosure rate with one out of 144 houses receiving foreclosure filings. The state has the second highest repossession rate in the country despite a 4 percent drop in foreclosure activity from the April figures.

The ranking for the third highest state in terms of foreclosure rate went to Florida with one out of 148 houses under threat of foreclosure. Arizona grabbed the fourth place with foreclosure filings made on one household out of 158 units, while Utah settled in the fifth place with one out of 316 houses under threat of foreclosure.

On the other hand, California’s total foreclosure filings of 92,249 was the highest among states, an increase of about 23 percent from last year May’s total. On a positive note, bank foreclosures in California declined 1 percent compared with April’s figures.

The foreclosure crisis, which resulted to a subsequent sale of discounted REO properties, has pulled down average home prices across the country.

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• Bank Foreclosed Homes Maintenance Program in Florida
• Increase in Bankruptcy Filings to Stop House Repossession
• House Repossession Remained Unabated in Wisconsin in July
• Chicago Put Illinois High on Lists of Foreclosures by State