by Ryan C. McKeen
Foreclosures in Connecticut are on the rise and have been for sometime. I haven’t seen updated numbers from the Judicial Branch (which would be useful) but I don’t live under a rock either.
I’m not that interested in the overall numbers because I know they’re bad.
What I want to know is the length time between when title vests in a lender and when that lender files for an execution of ejectment.
Why do I want to know this?
Because anecdotally, I think then numbers would show that lenders are waiting longer between the time title vests and when they take action to remove someone who is in possession of the premises.
Why would banks do this?
- First, it costs banks money to carry a house. At the very least, a bank is going to want to keep the heat on to avoid pipes breaking in the winter. For the bank, it’s more cost effective if an occupant pays for heat.
- Second, banks don’t want more housing inventory because high levels of inventory on the market drive down home values and reduce the bank’s opportunity to recoup its losses.
- Third, having someone occupy the home reduces the risk of persons who were not defendants in the foreclosure action taking unlawful occupany of a residence.
I could be all wrong but I’d like to know because court statistics could provide us with some insightful evidence as to what is happening in Connecticut’s housing market.