Economists in Norwich-New London region in Connecticut are raving because they see signs that foreclosures may have already hit its bottom in the area. As they say, once the bottom is hit, there is no other way but up.
Rates of foreclosures in the region continued to rise in September to 2.87% from 2.19% in September last year. The data is according to information recently released by a local Real Estate tracker. It was noted that despite the modest increase in foreclosure, the rate is still lower compared to foreclosure rates in the entire Connecticut and even in the entire US.
However, mortgage delinquencies are falling, which is interpreted as a positive sign by most market observers. The percentage of home loans that are delinquent by 90 days or more, while still higher in September than in the same month last year, has been slowing steadily in the last six months.
Analysts said mortgages in the region that are now 30 days, 60 days, or 90 days delinquent are showing signs of noticeable slowing. This, according to them, is giving higher hopes for 2011. Mortgages that are 90 days or more delinquent are usually considered as the bellwether of the regions future foreclosures.
More analysts assert that the foreclosure situation not just in the Norwich-New London region but also in the entire state could get much better. That is if a proposed $1 billion fund from the federal government through the US Department of Housing and Urban Development would be approved. The program would distribute up to $50,000 to each troubled homeowner who is facing a possible foreclosure.
Currently, about $33 million of assistance fund has already been allocated to about 1,000 troubled households in Connecticut through the Emergency Homeowners Loan Program. Under the program, financial support would be given for about two years. Loans could even be possibly forgiven if a resident has been staying in the foreclosed home for at least five years.
On the downside, some economists worry about the reliance of the region on employment provided at local casinos. They warned that employment rate could be affected if the casinos in the region compete head on with counterparts and rivals, particularly in Massachusetts. Rates of foreclosures could also be affected by the end of stipends provision to members of the Mashantucket Pequot tribe in the region.
For more news on foreclosures, check out ForeclosureConnections.com.