Massachusetts Foreclosed Homes

Fewer Massachusetts Foreclosures In August

Fewer Massachusetts properties were foreclosed on in August 2009 compared to July 2009 and August 2008, The Warren Group, a publisher of real estate data, reported September 22, 2009.

Despite the drop in foreclosures, petitions to foreclose, the initial stage of the foreclosure process, increased 154 percent to 2,396 in August from 943 during the same month last year but were 17.4 percent lower than the 2,899 petitions filed in July 2009.

There were 658 foreclosure deeds recorded in August, down 34.5 percent from 1,005 in August 2008 and 4.4 percent lower than the 688 deeds recorded in July. Foreclosure deeds are the final step in the process and represent completed foreclosures. A total of 6,076 foreclosure deeds were recorded in the first eight months of 2009, a 31 percent drop from 8,811 in the first eight months of 2008.

The large increase in year-over-year foreclosure petitions is mostly due to a state law that went into effect last May that led to a temporary slowdown in the initiation of foreclosure proceedings. The law requires lenders intending to start foreclosure proceedings to give defaulting borrowers 90 days to catch up with missed payments.

So far this year, lenders have filed 19,108 petitions to foreclose, a 31.6 percent increase from 14,521 recorded during the same period last year.

The number of auction announcements tracked by The Warren Group has fallen this year. Auction announcements dropped 22.1 percent to 1,370 in August from 1,759 in August 2008. So far this year, The Warren Group has tracked 10,764 auction notices, down 22 percent from 13,798 during the same period last year.

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U.S. Regulators Fight Mortgage Scams

Federal regulators, looking to take away a common tool used in mortgage frauds, are considering a nationwide ban on companies' charging upfront fees for helping homeowners modify loans to avoid foreclosures, the Los Angeles Times reported September 18, 2009.

The move comes as federal and state officials plan to expand a crackdown on mortgage-related scams and other schemes that prey on debt-ridden consumers trying to stay financially afloat due to a poor economy, unemployment, falling home prices and exotic mortgages.

While foreclosures remain near record levels, the only way many consumers can stay in their homes is by reducing their mortgage payments. As often happens during economic downturns, scam artists have tried to cash in on other people's misfortune, this time by asking for large upfront payments for help seeking mortgage modifications.

I heard a radio ad just a few days ago by a "loan modification company" that suggested homeowners didn't need help from the government or lawyers, but should contact them directly to get help with a loan modification.

Number of U.S. Foreclosures Remain Near Record

U.S. mortgage foreclosure filings in August hovered near July's record high despite efforts to keep borrowers in their homes, The New York Times reported September 10, 2009.

Predictions are for foreclosure filings to continue to rise for another year.

Filings, including notices of default, auction and bank repossession, dipped 1 percent last month from July's all-time high and were up 18 percent in August from August 2008

The Times obtained its data from foreclosure firm RealtyTrac. One in every 357 U.S. households with loans got a foreclosure filing in August.

Six states had 62 percent of total foreclosure actions in August. Nevada, Florida and California had the highest state foreclosure rates, respectively. Rounding out the states with the highest rates of foreclosure activity were Michigan, Idaho, Utah, Colorado, Georgia and Illinois. A new Michigan law requiring lenders to file a separate public default notice before slating a foreclosure auction pushed the state to the fifth highest rate from 19th place in the prior month.