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5. Distressed property numbers will bottom out. ���We will be dealing with a significant number of distressed properties for a few more years, but the numbers should start retreating to more traditonal levels in 2013,��� Liniger said. 6. Shadow inventory will continue to fall. Liniger explained shadow inventory has already fallen 12 percent from 2011. 7. The number of short sale closings will rise to a peak. 8. Record low mortgage rates will rise slightly by year-end. Although they will remain near their historic lows, Liniger says rates may start to inch up toward the end of the year. 9. Lending remaining tight was Liniger���s one negative prediction. ���Due to increased government regulation and the soon-to-be-established provisions of Dodd-Frank, lenders will be compelled to keep standards tight,��� he said. 10. Home affordability will remain the best in years, bringing more buyers into the market. Connecticut rank: 8 90+ Day Delinquency Rate Foreclosure Rate december 2012 3.16% Unemployment Rate 5.01% 8.6% year ago 2.95% 5.25% 8.1% percent point change 6.9% -4.4% 6.2% Top County Windham CounTy 90+ Day Delinquency Rate Foreclosure Rate december 2012 4.27% 7.77% year ago 4.61% 7.53% percent point change -7.3% 3.2% Top Core-Based Statistical area WillimanTiC, CT 90+ Day Delinquency Rate december 2012 4.27% Foreclosure Rate 7.77% year ago 4.61% 7.53% percent point change -7.3% 3.2% note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the December 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary December 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. KNOW THIS The maximum number of allowable days between the due date of the last paid installment and the foreclosure sale date in Colorado is 360, according to Fannie Mae. 84 IN THE NEWS Former Managing Director at Jefferies Charged with Securities Fraud A former managing director and senior trader at Jefferies & Co. was charged for allegedly defrauding investors when selling residential mortgage-backed securities (RMBS), the Securities and Exchange Commission (SEC) announced in a release. Jesse Litvak was charged with securities fraud, Troubled Asset Relief Program (TARP) fraud, and making false statements to the federal government, according to a separate announcement from Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and the U.S. Attorney���s Office in Connecticut. The SEC���s complaint alleges Litvak, who worked out of the office in Stamford, Connecticut, was not honest with customers about the price at which his firm bought MBS so he could re-sell the MBS at a higher price while making extra money for the firm. Litvak also deceived customers by creating a fake third-party seller and claiming he was arranging a MBS trade between customers when he was actually selling MBS out of his firm���s inventory at a higher price. The practices went on from 2009 to 2011, according to the SEC. ���Brokers must always tell their customers the truth, particularly in complex securities transactions, in which it is difficult for investors to determine market prices on their own,��� said George Canellos, deputy director of the SEC���s Division of Enforcement. The SEC���s complaint, which was filed in federal court in Connecticut, further alleges Litvak generated more than $2.7 million in additional revenue for Jefferies through his practices, which in turn helped him earn bonuses. Litvak also allegedly defrauded funds that received financial support from TARP. Personal Bankruptcy Filings Decrease in Connecticut Overall personal bankruptcy filings in Connecticut decreased in 2012 as consumers became more confident about their ability to handle debt, according to a report from the Warren Group. In Connecticut, personal bankruptcy filings numbered 7,242 in 2012, down from 8,518 in 2011, representing a 15 percent decrease. ���The drop in bankruptcy filings is an encouraging sign; it indicates that consumers are more optimistic about their ability to pay off debt and clean up their financial situations,��� said Timothy M. Warren Jr., CEO of the Warren Group. ���If the housing market��� and overall economy���continues to improve, we are sure to see even better results in 2013.��� Among the different forms of bankruptcy, Chapter 7 filings decreased, falling to 1,628 in the fourth quarter of 2012 from 1,795 in the same quarter a year ago. Chapter 7 is the most common form of bankruptcy, with Chapter 7 filings accounting for 86 percent of filings in Connecticut in 2012. The type of bankruptcy involves a liquidation proceeding where the debtor turns over all non-exempt property to the bankruptcy trustee, who then converts it to cash to be distributed to creditors. On the other hand, Chapter 13 bankruptcy filings saw a more than 9 percent increase to 1,022 in 2012 compared to 934 in 2011. Chapter 13 bankruptcy is filed by individuals who want to pay off their debts over a period