October Warren Report on Massachusetts Foreclosures

Posted by
November 20, 2009
Statistics regarding foreclosures in Massachusetts for the month of October were a mixed bag of news, according to Timothy M. Warren Jr., CEO of The Warren Group.
According to the latest report released by the Warren Group, a provider of real estate data in New England, foreclosures in Massachusetts rose nearly 30 percent in October compared to September, but on a year-to-year basis the number of foreclosures in October 2009 dipped, with 85 fewer than the same time last year.
While the number of new foreclosures initiated in the state in October dropped 9 percent from September, these same results created an 11 percent increase from the same period last year.
“The number of foreclosures in October was actually the third highest so far this year. But the pace of foreclosures is still lower than it was last spring and summer when there was an average of nearly 1,200 foreclosures a month,” Warren said. “Still, a key concern is the level of petitions to foreclose, which indicate how many distressed property owners are at risk of foreclosure in Massachusetts. Lenders have filed an average of over 2,500 foreclosure petitions a month since May.”
As the first step in the state’s foreclosure process, petitions to foreclose decreased 9.1 percent in October, compared to September. While month-to-month numbers were down, there was an 11.2 percent increase in petitions to foreclose this October compared to October 2008. Year-to-date petitions to foreclose have surged 27 percent. Due to high delinquency rates, unemployment, and income issues many homeowners are facing, Warren said he fears this initial step of foreclosure will increase in the next few months.
Completed foreclosures, referred to as foreclosure deeds, rose 29.6 percent from September to October this year, but compared to October 2008, this number decreased 8.5 percent, the Warren Group said. The 7,707 foreclosure deeds recorded in Massachusetts so far this year show a 27.3 percent decline from the 10,606 completed foreclosures in 2008.
On the auction front, announcements increased 38 percent in October compared to September of this year and surged 57.3 percent from the same period last year. With a total of 15,273 auction announcements so far in 2009, numbers are down 9.8 percent compared the 16,930 in 2008.
According to the Warren Group, a number of factors have helped temper foreclosure activity in Massachusetts. Most noted of these factors were federal efforts to offer loan modifications to troubled borrowers and a Massachusetts Land Court decision forcing some lenders to hold back on foreclosure proceedings until proper mortgage assignments have been made. Additionally, a state law went into effect last year which slowed the rate of foreclosure petition filings by requiring lenders to give delinquent borrowers 90 days to catch up with missed payments before starting a foreclosure proceeding.

Statistics regarding foreclosures in Massachusetts for the month of October were a mixed bag of news, according to Timothy M. Warren Jr., CEO of The Warren Group.

According to the latest report released by the Warren Group, a provider of real estate data in New England, foreclosures in Massachusetts rose nearly 30 percent in October compared to September, but on a year-to-year basis the number of foreclosures in October 2009 dipped, with 85 fewer than the same time last year.

While the number of new foreclosures initiated in the state in October dropped 9 percent from September, these same results created an 11 percent increase from the same period last year.

“The number of foreclosures in October was actually the third highest so far this year. But the pace of foreclosures is still lower than it was last spring and summer when there was an average of nearly 1,200 foreclosures a month,” Warren said. “Still, a key concern is the level of petitions to foreclose, which indicate how many distressed property owners are at risk of foreclosure in Massachusetts. Lenders have filed an average of over 2,500 foreclosure petitions a month since May.”

As the first step in the state’s foreclosure process, petitions to foreclose decreased 9.1 percent in October, compared to September. While month-to-month numbers were down, there was an 11.2 percent increase in petitions to foreclose this October compared to October 2008. Year-to-date petitions to foreclose have surged 27 percent. Due to high delinquency rates, unemployment, and income issues many homeowners are facing, Warren said he fears this initial step of foreclosure will increase in the next few months.

Completed foreclosures, referred to as foreclosure deeds, rose 29.6 percent from September to October this year, but compared to October 2008, this number decreased 8.5 percent, the Warren Group said. The 7,707 foreclosure deeds recorded in Massachusetts so far this year show a 27.3 percent decline from the 10,606 completed foreclosures in 2008.

On the auction front, announcements increased 38 percent in October compared to September of this year and surged 57.3 percent from the same period last year. With a total of 15,273 auction announcements so far in 2009, numbers are down 9.8 percent compared the 16,930 in 2008.

According to the Warren Group, a number of factors have helped temper foreclosure activity in Massachusetts. Most noted of these factors were federal efforts to offer loan modifications to troubled borrowers and a Massachusetts Land Court decision forcing some lenders to hold back on foreclosure proceedings until proper mortgage assignments have been made. Additionally, a state law went into effect last year which slowed the rate of foreclosure petition filings by requiring lenders to give delinquent borrowers 90 days to catch up with missed payments before starting a foreclosure proceeding.

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