Bay State Foreclosures Surge In First Three Quarters
Monday, November 03, 2008
The number of foreclosure deeds recorded in Massachusetts soared 72 percent in the first three quarters of 2008 from a year ago, according to a new report from Boston-based The Warren Group, publisher of Banker & Tradesman. Meanwhile, foreclosure petitions, which represent the first step in the foreclosure process, shot up in September compared to the summer months.
A total of 9,609 foreclosure deeds have been recorded from January through September, up from 5,593 during the same period in 2007. Foreclosure deeds rose 18.6 percent to 798 in September from 673 in September 2007. Still, the number of foreclosure deeds filed has declined for four consecutive months and is the fewest number of deeds recorded in any month this year, The Warren Group said.
Lenders filed 2,258 petitions to foreclose in September, a 12 percent decline from 2,566 in September 2007. But September’s foreclosure petitions were more than double the 943 petitions filed in August and more than four times the 502 petitions in July.
The sharp increase comes after a temporary decline that occurred because of a new state law that went into effect May 1 which postponed the first step of the foreclosure for many delinquent homeowners. The law requires lenders intending to foreclose to give borrowers 90 days to cure a mortgage default.
“September’s foreclosure petition activity is nearing the level we saw during the first four months of the year before the so-called right to cure law went into effect,” explained Timothy Warren, CEO of The Warren Group. “During that period, lenders were filing about 3,000 foreclosure petitions a month.”
“This is a signal that foreclosure activity hasn’t peaked,” Warren said. “Even though foreclosure deeds have declined for four consecutive months, the increase in petition activity shows that there are borrowers who are struggling to save their homes even as the slumping housing market makes it harder for them to refinance into more workable loans or to sell their properties.”
Cities like Worcester and Springfield have experienced the greatest number of foreclosures this year, according to The Warren Group report. Worcester (572), Springfield (521), Boston’s Dorchester neighborhood (509), and Brockton (452) led the state in foreclosure deeds recorded.
Auction announcements continued to climb in September, increasing 10.3 percent to 1,446, from 1,311 a year ago. Year-to-date auction announcements jumped 34.2 percent to 15,244 from 11,359.
A total of 9,609 foreclosure deeds have been recorded from January through September, up from 5,593 during the same period in 2007. Foreclosure deeds rose 18.6 percent to 798 in September from 673 in September 2007. Still, the number of foreclosure deeds filed has declined for four consecutive months and is the fewest number of deeds recorded in any month this year, The Warren Group said.
Lenders filed 2,258 petitions to foreclose in September, a 12 percent decline from 2,566 in September 2007. But September’s foreclosure petitions were more than double the 943 petitions filed in August and more than four times the 502 petitions in July.
The sharp increase comes after a temporary decline that occurred because of a new state law that went into effect May 1 which postponed the first step of the foreclosure for many delinquent homeowners. The law requires lenders intending to foreclose to give borrowers 90 days to cure a mortgage default.
“September’s foreclosure petition activity is nearing the level we saw during the first four months of the year before the so-called right to cure law went into effect,” explained Timothy Warren, CEO of The Warren Group. “During that period, lenders were filing about 3,000 foreclosure petitions a month.”
“This is a signal that foreclosure activity hasn’t peaked,” Warren said. “Even though foreclosure deeds have declined for four consecutive months, the increase in petition activity shows that there are borrowers who are struggling to save their homes even as the slumping housing market makes it harder for them to refinance into more workable loans or to sell their properties.”
Cities like Worcester and Springfield have experienced the greatest number of foreclosures this year, according to The Warren Group report. Worcester (572), Springfield (521), Boston’s Dorchester neighborhood (509), and Brockton (452) led the state in foreclosure deeds recorded.
Auction announcements continued to climb in September, increasing 10.3 percent to 1,446, from 1,311 a year ago. Year-to-date auction announcements jumped 34.2 percent to 15,244 from 11,359.
