Are homeowners who are in foreclosure or at risk of losing their homes increasingly filing for bankruptcy as a last ditch effort to save their homes?

The Warren Group recently reported that bankruptcy filings in Connecticut jumped 20 percent in the first half of the year compared to the same period in 2009. The increase in bankruptcy filings comes as foreclosures have jumped 37 percent statewide. There were 3,010 foreclosures in the first five months of the year compared to 2,191 during the same months last year, according to The Warren Group.

It doesn’t necessarily mean the two are tied together. After all, renters can file for bankruptcy protection too.

But filing for bankruptcy protection can temporarily halt the foreclosure process, and can also give homeowners some more money and time to catch up with missed mortgage payments. Attorneys often recommend it to clients who are desperate to save their homes. With a Chapter 7 filing, unsecured debt – like credit card bills – is dismissed. But consumers are still on the hook for mortgages, which are secured debt.

Filing for bankruptcy protection, can help a homeowner who has steady employment by reducing the number of bills they have to pay, ultimately freeing up cash for monthly mortgage payments.

With a Chapter 13 filing, a consumer can repair their finances and come up with a court-approved payment plan – usually over three to five years. In such a filing, a judge can eliminate second mortgages, such as home equity loans, if a home value has dipped below the first mortgage amount.

Has Connecticut’s luxury home market made a permanent comeback, or is the recent uptick just a temporary blip?

Sales of $1 million-plus single-family homes statewide have more than doubled in the first six months of this year compared to the same period in 2009, according to a new report by Commercial Record Staff Writer Colleen Sullivan. The report attributes the spike to more favorable rates for jumbo loans.

The super high-end has fared even better. Sales of homes with price tags of $3 million and higher have actually tripled, according to statistics from The Warren Group.

Are the lower jumbo rates the key factor, or is confidence in the housing market and the overall economy driving factors? Of course, the jump might seem so sharp because last year home sales in the high end were really dragging.

And should we expect to see an increase in the second half of the year?

If I built a new house for myself, I know what would automatically be on my wish list: a large, functional kitchen that’s easy to clean and fits my large family during holiday gatherings.

Not surprisingly, that’s what a lot of homebuyers seek. Large kitchens featuring islands tops the list of 10 must-have features in new homes, according to an annual survey of homebuyer preferences conducted by AVID Ratings Co. That’s followed by granite countertops, energy-efficient appliances and a home office/study.

You would expect to find those things on the list, but a few other features on the list, like “outdoor living room”, are questionable.

I’ve drooled over some spectacular outdoor living spaces, complete with state-of-the-art kitchens, fireplaces and even high-definition flat-screen televisions, on HGTV. Some of these spaces have been created with budgets of $80,000 or higher.

Of course they’re gorgeous, but I’ve always wondered how such spaces are maintained and protected by the elements. In New England, where we tend to have long, cold and wet winters, how would such an outdoor space stand up to harsh weather?  

Plus, in New England you’d be lucky if you could use the space two or three months out the year. I can’t see spending hundreds of thousands of dollars to use a space for only two months out of the year, or worse, seeing it destroyed after a brutal winter.

The other item on the “must-have” list is master suite soaker tubs. Sounds perfectly luxurious. But honestly, how many people have time to use the soaker tub? I’d take an oversize shower over the soaker tub any time.