IN THE NEWS

Report suggests more foreclosure woes for Stamford

May 23, 2010; As originally appeared in The Stamford Advocate

Elizabeth Kim, Staff Writer

STAMFORD -- Despite evidence of climbing housing prices, a recent city report indicates that the number of foreclosures continues to creep higher over previous years.

Statistics compiled by the Stamford Community Development Office show that there have been a total of 49 home foreclosure filings so far this year. Of those, 40 occurred during the three-month period between January and March. The first quarter total reflects an increase of 8 percent, or 3 more foreclosures, over the same time last year and more than double the period in 2008.

As another example of the magnitude of the escalation, the report states that there were 120 foreclosures in 2009, which was more than triple that of 2007, when concerns over subprime mortgages emerged.

The city's research, based on land records, also shows that the number of lis pendens filings, the first step in the foreclosure process, has continued to rise over time. The pre-foreclosure filings rose by 11 percent in the first quarter of this year, compared with the same period in 2009, from 1,140 to 1,270. The first quarter 2008 saw 684 pre-foreclosure filings.

The statistics corroborate the growing demand for foreclosure assistance experienced by the Housing Development Fund, which runs clinics to help families facing the threat of losing their homes.

Joan Carty, the president of the Stamford-based nonprofit, said that over the past six months, the average number of families showing up for the clinics has risen from 10 to 40.

"What we are seeing is a continuing rise in the number of people who are falling behind," she said. "We don't see a crest yet. The wave just keeps rising."

One contributing factor may be the level of unemployment. According to the U.S. Bureau of Labor Statistics, the unemployment rate in the Bridgeport-Stamford-Norwalk region rose to 9.1 percent in January 2010. In March, the figure tapered off to 8.5 percent, one percentage point higher than the same time last year.

Carty noted that Housing Development Fund, which primarily assists low- and moderate-income families purchasing homes, initially began foreclosure counseling largely as a response to the waves of homeowners who had fallen victim to predatory loans.

"That real threat has been eclipsed by the number of people who have been in trouble because they have lost their jobs," she said. "If the underlying problem is loss of income, you can't offer mortgage modification as a solution."

News of the city's persisting foreclosure problems comes amid signs of life in the housing market.

The median sale price of one-family homes and condominiums in the first quarter was $430,000, an increase of 19 percent over the same time last year, according to The Warren Group.

Coinciding with the expiration of a federal homebuyer tax credit, home sales surged by more than 50 percent in the first quarter, from 164 in 2009 to 253 in 2010.