A report showing a dramatic drop in June foreclosure filings Thursday may have raised some hopes that the crisis is nearly over. It was, after all, the third straight month of declines for Connecticut.
But the statistics released Thursday are probably flawed, said RealtyTrac, which collected the data and released them as part of a national, state-by-state report.
Daren Blomquist, a RealtyTrac spokesman, said the collection of data in Connecticut appears to have lagged and the report for June does not fully reflect all the filings in that month. That may lead to a spike in filings for July, Blomquist said.
The statistic for initial filings for foreclosures in June — 56 — seemed especially low to Nicholas S. Perna, economic adviser to Webster Bank, considering there were 35 for the fourth week of June in just Fairfield County alone, according to another data source.
"Don't break out the champagne just yet," Perna quipped.
Nationally, foreclosure filings in the RealtyTrac report rose 4.6 percent in June, compared with May.
The Warren Group, which tracks sale, price and foreclosure trends in Connecticut, still sees foreclosure activity increasing — as the state keeps shedding jobs and household budgets are strained. Warren hasn't released its June report yet.
Despite the likely understating by RealtyTrac for June, Warren Group said the number of one type of filing —properties lost to foreclosure — slowed in Connecticut in May compared with a year ago. Some of that can be attributed to state foreclosure prevention programs, especially mediation.
In the spring, a report from the Mortgage Bankers Association showed that through March, Connecticut continued to see a rise in serious mortgage delinquencies and mortgages in foreclosure. A report on the three months ended June 30 is expected next month.