The number of foreclosure deeds recorded in Massachusetts in March were 18 percent below last year’s level, according to a new report from the Boston-based real estate research firm The Warren Group. Despite the annual decrease, on a monthly basis, foreclosure deeds in the state climbed 15.4 percent compared to February. The Warren Group's market data showed that there were 953 foreclosure deeds in March, down from 1,167 in March 2008 but up from 826 in February.

In a similar manner, lenders initiated more foreclosures in March compared to February but fewer than the same month a year ago. The Warren Group reported that lenders filed 2,381 petitions to foreclose in March, up 3.7 percent from 2,295 in February. But March’s foreclosure petitions were 19.5 percent lower than the 2,958 petitions filed in March 2008. Foreclosure petitions are the first step in the foreclosure process in Massachusetts.

Commenting on the Bay State's numbers, Timothy M. Warren Jr., CEO of The Warren Group, said, “Foreclosure activity appears to have moderated compared to last year. However, we have some concern that the glimmer of hope provided by the year-over-year drop-off in March foreclosure petitions could be temporary.”

Warren went on to explain, “In the first few months of 2008, lenders were scurrying to initiate foreclosures because they were anticipating a state law that went into effect last May that requires them to give borrowers a 90-day notice before starting foreclosure proceedings. That could have spurred a spike in foreclosure petitions in the early part of last year.”

Looking at the company's first quarter data for Massachusetts, petitions to foreclose fell 26.3 percent in the first three months of 2009 to 6,636, down from 9,008 during the same period in 2008. Still, foreclosure petitions in the state have been steadily rising month-to-month since last November.

Foreclosure deeds have also declined for the year so far. The Warren Group's report shows that a total of 2,755 foreclosure deeds were recorded statewide from January through March, down 2.5 percent from 2,827 a year ago.

Warren noted that many large lending institutions instituted moratoriums in late 2008 and early this year. “That stalled or delayed foreclosure proceedings,” he said. “But many banks and mortgage companies have lifted their moratoriums and are now stepping up foreclosures on delinquent borrowers.” According to Warren, this could lead to a jump in foreclosure activity going forward.

The Warren Group tracked 1,093 auction announcements in Massachusetts in March, a 19.2 percent increase from 917 in February. But March auction announcements dropped 48.9 percent from March 2008, when The Warren Group reported 2,139 auction notices. Based on the research company's data for the state, there were a total of 3,324 auction announcements for the first three months of 2009, down 34.5 percent from 5,079 in the same period last year.

 

Carrie Bay | 05.15.09 www.dsnews.com