If it could talk, the multifamily house at 101 Twiss St. in Meriden could share the whole story behind the housing market's wild climb and eventual plunge.

A buyer purchased the home in 1987 for $66,000 and resold it to Prime Homes LLC in early 2005 for $87,500, according to city records.

After getting $2,500 in new windows and remodeling, the 100-year-old home resold in November 2005 for $147,000.

The house flipped again just as the housing bubble was getting ready to pop in August 2006 for a whopping $335,000.

In June 2008, the mortgage holder Countrywide Home Loans became the owner. Calcagni Associates got the listing in March 2009 and put it on the market in July for just $42,000.

From multi-family homes like this one in Meriden, to single-family houses and condos in Wallingford, Southington and Cheshire, the area saw foreclosures increase during the worst of the recession. But while those in real estate like to say the state hasn't been hit as hard as other areas, such as Las Vegas, Florida and California, they acknowledged the value drop when homes go empty.

The Warren Group, publisher of The Commercial Record, reports some improvement in local foreclosure numbers for the 10 months ending October 2009. In Southington, there were 50 percent fewer foreclosures than in 2008.

There are several reasons for the decrease. More troubled homeowners are seeking out government housing programs sooner to get mortgage relief, for example. There have also been more short sales. Court mediation laws and more cooperative lenders have also played a role.

Those in the real estate business take the numbers with a grain of salt, attributing them to higher priorities on short sales to avoid foreclosures. A short sale is when a homeowner owes more on a property than it is worth and is having difficulty meeting the payments. In many of these sales, the bank agrees to shave some of the amount owed, and in some cases, the seller may walk away.

"In Wallingford, we don't see a lot of foreclosures," said Pat Harriman of William Raveis in Cheshire. "We are seeing a lot of short sales. They are in a position where they need to sell because they can't sell it outright. Some of these can't afford their houses and they end up renting."

Last year, those in the industry said the banks weren't moving fast enough to stop foreclosures. This year, there has been some improvement, but agents would like to see more hustle to stop short sales from falling through.

John Carusone, director of the Connecticut Center for Banking Analysis, said buyers and sellers can't have it both ways and delays are caused by regulatory pressures to be more cautious, while protecting the bottom line.

Steve Miller, of ReMax Right Choice Real Estate, thinks the worst is still yet to come as some adjustable-rate mortgages reset to higher interest rates and payments. Lenders and banks should improve staffing in their loss mitigation and liquidation departments to handle defaults and foreclosures on a case-by-case basis faster.

The National Mortgage Bankers Association reported earlier this month it is likely to get worse for another reason - unemployment.

Job losses push delinquencies and foreclosures, and most economists don't predict any improvements in the job market until 2010.

But while they can't help in every instance, state and federal mortgage relief programs may have also helped stem the wave of foreclosures, said local housing advocates.

"Our services are more proactive. Banks are listening a little more," said Kyle D. Anderson, director of home ownership, Neighborhood Housing Services of New Britain. "It's not as much as we like, but they are doing a lot better. They are listening."

Lenders have also hired more people in their loss mitigation departments and the combination of Housing and Urban Development counselors from offices such as Anderson's are getting through.

From 2007 to 2008, 131 clients were helped in the New Britain program, which services all of Central Connecticut. In 2008 to 2009, 234 homeowners have come through the doors seeking help. Of that, 154 home mortgages have been reworked to avoid foreclosure and the office continues to work on the remaining 80.

Another factor in reducing foreclosures is state law. All foreclosures must go through court-ordered mediation in the state's judicial review system, and the results have been good, said Roberta Palmer, program manager for court operations in Wethersfield.

Palmer has put together a graph showing that 4,448 foreclosure cases have completed mediation as of October 2009. Of that number, 2,721 homeowners are staying in the home, 14 percent are moving from the home and 25 percent remain unsettled.

The mediation laws have meant more communication between lenders and homeowners. The banks need to do more, Anderson said. Before, his agency was only able to assist in the short term. Now workers can help modify the loan for the best.

"Some of my staff will spend hours on the phone," he said. "But if you have a good HUD counselor they can walk in and communicate."

There is also a need to educate homeowners about managing their money and avoiding housing pitfalls.

"It's a little bit of both," Anderson said. "We put the onus back on the client to adjust their budget. Stay away from companies that guarantee a modification, going to the casino or a $700 a month car payment. It's financial management and working within your means."

mgodin@record-journal.com

(203) 317-2255