Massachusetts Foreclosed Homes

U.S. Foreclosure Filings Decrease In November

U.S. foreclosure filings in November were reported on 306,627 properties during the month, a decrease of nearly 8 percent from the previous month, but still up 18 percent from November 2008, RealtyTrac, a publisher of foreclosure data, reported December 10, 2009.

The report also shows one in every 417 U.S. housing units received a foreclosure filing in November. Foreclosure filings include default notices, scheduled foreclosure auctions and bank repossessions.

November was the fourth straight month that U.S. foreclosure activity has declined after hitting an all-time high in July, and November foreclosure activity was at the lowest level since February.

Default notices nationwide were down 8 percent from the previous month, but still up 22 percent from November 2008. Scheduled foreclosure auctions were down 12 percent from the previous month, but were still up 32 percent from November 2008, and bank repossessions were flat from the previous month and down 2 percent from November 2008.

Massachusetts saw a 26 percent decrease in November compared to October 2009, but a 76 percent increase from November 2008. (Free Massachusetts foreclosure listings)

Nevada foreclosure activity decreased by a double-digit percentage for the second straight month, but the state continued to document the nation’s top foreclosure rate with one in every 119 housing units receiving a foreclosure filing in November, a number 3.5 times higher than the national average. A total of 9,295 Nevada properties received a foreclosure filing during the month, a 33 percent decrease from the previous month and also a 33 percent decrease from November 2008. Nevada’s November total was 52 percent below its July total of 19,535 properties with foreclosure filings.

Florida posted the nation’s second highest state foreclosure rate in November with one in every 165 housing units receiving a foreclosure filing during the month. Florida took the No. 2 spot from California, which posted the nation’s third highest foreclosure rate. One in every 180 housing units received a foreclosure filing during the month in California.

After three straight months of decreases, Arizona foreclosure activity increased nearly 8 percent in November and the state documented the nation’s fourth highest foreclosure rate with one in every 186 housing units receiving a foreclosure filing.

Despite a nearly 2 percent decrease in foreclosure activity from the previous month, Idaho posted the fifth highest state foreclosure rate in November with one in every 259 housing units receiving a foreclosure filing.

Other states with foreclosure rates ranking among the nation’s 10 highest were Michigan, Illinois, Utah, Maryland and New Jersey.

Four states accounted for more than 50 percent of the nation's foreclosure filings. For the second month in a row, the same four states accounted for 52 percent of the nation’s total foreclosure activity: California, Florida, Illinois and Michigan.

MA Foreclosures Up In October, Down YTD

Foreclosures in Massachusetts rose nearly 30 percent in October compared to September, but 85 fewer foreclosures were recorded compared to October 2008, The Warren Group, publisher of Banker & Tradesman, reported November 19, 2009.

At the same time, the number of foreclosures initiated in October dropped 9 percent from September, but climbed 11 percent from a year earlier.

Petitions to foreclose, the first step in the state’s foreclosure process, fell 9.1 percent to 2,296 from 2,527 in September, but rose 11.2 percent from 2,065 in October 2008. Year-to-date foreclosure petitions have jumped 27 percent to 23,931 from 18,844 in 2008.

Foreclosure deeds, which represent completed foreclosures, rose 29.6 percent to 911 in October from 703 in September, but declined 8.5 percent from 996 in October 2008. So far this year, a total of 7,707 foreclosure deeds have been recorded statewide, down 27.3 percent from 10,606 in 2008.

“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,” said Timothy M. Warren Jr., CEO of The Warren Group. “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.”

October auction announcements rose 38 percent to 2,592 from 1,878 in September and 57.3 percent from 1,648 in October 2008. The Warren Group has tracked a total of 15,273 auction announcements from January through October, down 9.8 percent from 16,930 the prior year.

The Warren Group reports that several factors have helped temper foreclosure activity, including federal efforts to offer loan modifications to troubled borrowers and a Massachusetts Land Court decision which has forced some lenders to hold back on foreclosure proceedings until proper mortgage assignments have been made. In addition, a state law that went into effect in the middle of last year slowed the rate of foreclosure petition filings because it requires lenders to give delinquent borrowers 90 days to catch up with missed payments before starting a foreclosure proceeding.

Massachusetts Foreclosures Decline Year-to-date

Year-to-date foreclosure deeds fell 29.5 percent to 6,778 from 9,610 the prior year, The Warren Group, a publisher of real estate data, reported October 20, 2009.

Lenders started and completed more foreclosures in Massachusetts during the third quarter than the previous quarter, but foreclosures have declined almost 30 percent compared to Q3 2008.

A total of 2,048 foreclosure deeds were recorded from July through September, a 3.9 percent increase from the 1,971 in the second quarter. But foreclosures dropped 29.4 percent from 2,903 in the third quarter of 2008. There were 702 foreclosures in September up 6.7 percent from 658 in August and down 12.1 percent from 799 in September 2008.

A recent court ruling has caused many lenders to proceed more cautiously before completing foreclosures. Last week, a Massachusetts Land Court judge reaffirmed an earlier decision that invalidated two foreclosures because the lenders had not properly demonstrated that they owned the properties at the time they advertised the foreclosure auctions. The decision has held up hundreds foreclosure sales.

Petitions to foreclose, which mark the first step in the foreclosure process in Massachusetts, have remained fairly steady this year. September foreclosure petitions climbed 5.5 percent to 2,527 from 2,396 in August and were also 11.9 percent higher than the 2,258 petitions filed in September 2008. Lenders have filed a total of 21,635 petitions to foreclose from January through September, a 28.9 percent increase from 16,779 during the same months in 2008.

The Warren Group tracked 1,716 auction announcements in September, a 21.8 percent increase from 1,409 in August and 15.6 percent higher than the 1,484 auction announcements last September. Year-to-date auction announcements slipped 18.1 percent to 12,519 from 15,282 a year earlier.

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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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Report: Mass., U.S. Foreclosures Up In July

Despite government efforts to rescue distressed homeowners, the number of Massachusetts homes in foreclosure soared by 43 percent in July compared to the same month last year, the Boston Herald reported August 13, 2009.

The data come from RealtyTrac, a California-based publisher of foreclosure statistics.

RealtyTrac reported that 5,114 homes in Massachusetts received default notices, scheduled auctions or were repossessed by a bank in July.

Nationally, 360,149 U.S. properties were in the foreclosure process last month, an increase of 32 percent from July 2008. The report also shows that one in every 355 U.S. homes received a foreclosure filing in July.

The top state foreclosure activity totals in July were reported by California ( 108,104); Florida (56,486); Arizona (19,694); and Nevada (19,535). Together these four states accounted for nearly 57 percent of the nation’s total foreclosure activity.

Boston Suburbs Not Immune From Foreclosure

A Boston Business Journal report on NECN August 10, 2009 reveals that tony suburbs around Greater Boston cannot escape the foreclosure crisis.

The data comes from The Warren Group.

MA Foreclosures Decline; Foreclosure Petitions Rise

Foreclosures in Massachusetts fell 29 percent during the first half of 2009 compared to a year earlier, The Warren Group, publisher of Banker & Tradesman, reported July 22, 2009; however, petitions to foreclose, the first step in the foreclosure process, rose 5.6 percent during the first six months of 2009 compared to the same period last year.

There were 4,737 foreclosure deeds from January through June, a 29.4 percent drop from 6,707 during the same months in 2008. In June, foreclosure deeds plunged 45.1 percent to 621 from 1,131 in June 2008, but climbed 6.7 percent from 582 in May. Foreclosure deeds are the final step in the foreclosure process.

While foreclosure deeds have declined year-over-year, the number of petitions to foreclose has increased. Lenders filed 13,813 petitions to foreclose during the first six months of 2009, up 5.6 percent from 13,076 last year. June’s foreclosure petitions jumped to 2,835, more than eight times higher than the 350 petitions in June 2008 and 21.7 percent higher than the 2,329 filings in May. The number of petitions to foreclose in June was the highest it’s been in the previous 13 months.

The Warren Group tracked 7,322 auction notices in the first half of the year, nearly 31 percent fewer than the 10,580 auction notices during the same period in 2008. Auction notices in June dropped 10.2 percent to 1,494 from 1,664 last June. But the number of auction notices increased 8.4 percent from May’s 1,378 auction notices.

I suspect we'll see the numbers fluctuate over the next six to 12 months as lenders continue to figure out how to proceed with the Obama Administration's loan modification plan, which has largely been unsuccessful.

MA Foreclosure Deeds Down, Starts Rise

The number of foreclosure deeds recorded in Massachusetts declined by double-digit percentages in May compared to the prior year and prior month, The Warren Group, a publisher of real estate data, reported June 18, 2009; however, the number of foreclosure proceedings started by banks and other types of lenders dramatically increased during the same period.

There were 582 foreclosure deeds recorded in May 2009, a 58.6 percent drop from 1,405 in May 2008 and 24.3 percent below the 769 in April 2009. Year-to-date foreclosure deeds fell 26.3 percent to 4,110 from 5,576.

“The number of foreclosure deeds recorded in May was the lowest since April 2007. It is encouraging that foreclosures have declined for two months straight. I think lenders have realized how costly foreclosures can be and are taking steps to avoid foreclosure whenever possible,” Timothy M. Warren Jr., CEO of The Warren Group, said.

“But I remain concerned because unemployment has crept up, and many people who’ve lost their jobs will have trouble keeping up with mortgage payments. In addition, it also looks like the pace of initiated foreclosures has remained fairly steady over the last four months. Lenders have started over 2,000 foreclosures a month since February,” Warren said.

A total of 2,329 foreclosure petitions were filed in May, almost six times the 390 foreclosure petitions filed in May 2008. Foreclosure petitions mark the start of the foreclosure process in Massachusetts. In addition, the number of foreclosure petitions climbed 15.7 percent from 2,013 in April 2009. There were 10,978 foreclosure petitions filed from January through May 2009, 13.7 percent lower than 12,726 last year.

“The sharp increase in May foreclosure petitions year-over-year is due to the so-called 90-day right-to-cure law that went into effect last May. The state law, which requires lenders intending to foreclose to give delinquent borrowers in Massachusetts 90 days to catch up on missed mortgage payments, artificially depressed foreclosure petitions in May 2008,” Warren said.

Auction announcements fell 30.7 percent to 1,377 in May 2009 from 1,987 in May 2008, but climbed 26.8 percent from 1,086 in April 2009.  Year-to-date auction announcements dropped 34.7 percent to 5,825 from 8,916.

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Court Ruling Halts Foreclosure Sales

A Springfield, MA Land Court judge's ruling that two banks improperly seized two properties in foreclosure has halted the sale of many bank-owned properties across the state, the Boston Herald reported June 9, 2009.

"Experts say Land Court Judge Richard Long’s recent decision to void two Springfield-area foreclosures over procedural flaws has gummed up resale of foreclosed homes across the state."

One local listing agent that sells mainly bank-owned properties told the Herald that, "It’s just stopped everything," and 12 of her sales have been halted since the ruling.

Due to the judge's decision, title insurance companies are not willing to write lender's or owner's title insurance policies. Without the availability of a lender's policy, lenders are not willing to provide financing on such deals.

"The judge found that the banks held foreclosure auctions even though both lacked documents at the time proving that they really owned the homeowners’ mortgages. That 'clouded' each property’s title, discouraging any third party from bidding on the homes, Long ruled."

I have a similar situation regarding a sale of a single-family home in Tewksbury, MA. My buyer agreed to purchase the property from an investor who bought the property from a bank. For the same reasons as in the Springfield court case, the property has a defective title. We are waiting for the outcome of the case.

"Experts say paperwork flaws are common in foreclosures these days, as mortgages often changed hands over and over again during the 1998-2005 housing boom. Any missing paperwork can call into question whether a bank really owned a loan it foreclosed upon."

Read The Boston Herald Article

MA Foreclosures Decline Dramatically In April

Massachusetts foreclosures dropped significantly in April from April 2008 and also were lower than in March, The Warren Group, a publisher real estate data, reported May 21, 2009. 

A total of 755 foreclosure deeds were recorded statewide in April, a 43.8 percent drop from 1,344 in April 2008. April 2009 foreclosure deeds were also down 20.8 percent from 953 in March 2009

April was the first time that foreclosure deeds fell below 800 in six months. It also marked the steepest year-over-year decline in monthly foreclosure deeds. Year-to-date, the number of foreclosure deeds fell 15.9 percent to 3,510 from 4,171 last year. The number of foreclosure deeds recorded in the first four months of 2009 climbed only in Berkshire, Dukes, Nantucket and Norfolk counties.

Petitions to foreclose, the first step in the foreclosure process, plunged 39.5 percent to 2,013 from 3,328 in April 2008. The number of foreclosure petitions also fell 15.5 percent from 2,381 in March 2009, the first drop in month-to-month petitions in five months.

Foreclosure petitions hit a peak in April 2008, a month before a state law took effect that required lenders to give delinquent borrowers 90-days to catch up on missed mortgage payments. So far this year, lenders have filed 8,649 foreclosure petitions statewide, 30 percent fewer than 12,336 a year earlier.

 “The good news is that the number of foreclosure deeds recorded in April was the lowest for a single month in over a year, and lenders have been starting far fewer foreclosure proceedings this year compared to last year,” said Timothy M. Warren Jr., CEO of The Warren Group. “But I’m a little cautious about being overly optimistic with this latest report because the employment picture hasn’t changed much and mortgage loan delinquencies have been trending up.”

Auction announcements continued to decline year-over-year. The Warren Group tracked 1,004 auction announcements in April, a 45.7 percent decrease from 1,850 in April 2008 and 8.1 percent below March 2009 when there were 1,093 auction announcements. Auction announcements have fallen every month this year from their levels a year earlier.

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