Massachusetts Home Buyer Guide

Mortgage Delinquency Map

The Wall Street Journal has put together a state-by-state mortgage delinquency map. Florida, Texas and Nevada lead the way. Massachusetts and New Hampshire appear to be about average.

Foreclosure Map

This interactive map produced by Boston.com provides you with city-by-city and town-by-town data on foreclosures in Massachusetts.

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Gov. Patrick Attempts To Slow Foreclosures

In an attempt to slow the rising number of foreclosures in cities such as Lawrence, MA, Governor Deval Patrick has started a pilot program to encourage lenders to make homes available for purchase by first-time buyers or local community development agencies rather than take them through foreclosure, The Eagle-Tribune reported October 18, 2007.

"With the pilot program, according to Brooks, lenders would agree to a "short sale" with homeowners late with their monthly payment. In a short sale, the lender accepts less than the full mortgage balance due, typically the assessed value of a home. Short sales help troubled homeowners because they won't have a foreclosure blotting their credit history, while lenders prefer a guaranteed return for a home rather than taking their chances trying to sell the property in the distressed Bay State housing market."

Lawrence foreclosures have increased 165 percent for the year ending July 31, 2007, according to ForeclosuresMass.com. In Essex County, foreclosures increased 90 percent. That compares with a statewide increase of 76 percent during the same period.

As I've said in a previous post, I like this idea. Buyers just need to be careful that they are actually getting a good deal.

Read The Eagle-Tribune Article

Foreclosure Crisis To Spread To Suburbs

The Boston Globe reported October 15, 2007 that Massachusetts Attorney General Martha Coakley said she believes the foreclosure crisis will spread from urban areas into the suburbs.

"But 'you are going to see foreclosures in some of our middle and more tony communities, and that is going to affect everybody's health and well-being in the market,’ she said."

It's true. There are more and more foreclosures hitting the market in wealthier suburbs.

Read The Boston Globe Article

U.S. Foreclosure Filings Nearly Double In September

U.S. foreclosure filings nearly doubled in September 2007 compared to September 2006, the Boston Herald reported October 11, 2007.

A total of 223,538 foreclosure filings were reported in September, up from 112,210 in the same month a year ago, according to RealtyTrac Inc, a real estate information company; however, the number of filings in September was down 8 percent from August’s 243,947.

"The filings include default notices, auction sale notices and bank repossessions. Some properties might have received more than one notice if the owners have multiple mortgages."

The foreclosure rate for the nation in September was one foreclosure filing for every 557 households.

Read The Boston Herald Article

Massachusetts Foreclosure Filings Rise In August

The Boston Herald reported October 10, 2007 that foreclosure petitions in Massachusetts rose by a relatively modest 12 percent in August compared to the previous year.

Foreclosure filings rose 67 percent in July and are up 45 percent over the first eight months of 2007.

"The Warren Group, a Boston-based publisher of real estate data, reported just under 2,000 petitions in August. A petition is the first step toward foreclosure, but doesn’t necessarily lead to the homeowner losing their property."

Announcements of actual foreclosure auctions rose 52 percent in August compared with August 2006, and, so far in 2007, auction announcements in the Commonwealth have increased nearly 2.5 times compared to the  same period in 2006.

The number of bank-owned properties on the MLS certainly have increased significantly over the past six months.

Read The Boston Herald Article

MA Gov. Has Plans For Foreclosed Homes

Governor Deval Patrick's administration hopes to work out a plan to sell foreclosed homes to new owners in an effort to stabilize neighborhoods hit hardest by rising foreclosure rates, the Boston Herald reported October 8, 2007.

"Under the direction of Tina Brooks, undersecretary of housing and economic development, state officials are weighing plans to strike deals with the subprime lenders most active in the distressed neighborhoods, said Clark Ziegler, executive director of the Massachusetts Housing Partnership. The lenders, under this plan, would agree to reduce the asking price of their foreclosed homes, writing off some of the debt in question."

I like this idea because the lenders will be writing off this bad debt sooner or later, especially as 2008 rolls around. It mind as well be sooner. Neighborhoods with many empty homes is not good for anyone. My only concern is whether home buyers will be getting truly good deals.

The plan initially will focus on Lawrence and Worcester. The foreclosure rate in Lawrence is five times the state medium, according to the Herald article.

Read The Boston Herald Article

U.S. Foreclosure Filings Continue To Rise

RealtyTrac, Inc., a California-based company that tracks the foreclosure market, released data that showed U.S. foreclosure filings in August jumped 115 percent compared to August 2006 and rose 36 percent compared to July 2007, the Boston Herald reported September 18, 2007.

"The filings include default notices, auction sale notices and bank repossessions. Some properties might have received more than one notice if the owners have multiple mortgages."

Multiple mortgages is not uncommon in recent years. One reason many home buyers have two mortgages is that they took out two loans in order to avoid paying private mortgage insurance, commonly referred to as PMI.

Read The Boston Herald Article

MA Politicians Continue Foreclosure Debate

More than 8,700 Massachusetts home owners have lost their homes to foreclosure since state officials began debating in January on how to fix the state's foreclosure crisis, the Boston Herald reported September 21, 2007.

Despite another hearing on Beacon Hill regarding the foreclosure issue September 20, 2007, lawmakers apparently are still weeks, if not months, away from passing a bill that would overhaul the subprime lending business in Massachusetts.

Foreclosures are up more than 65 percent so far this year compared to the same period in 2006.

"New foreclosure notices are being issued to Massachusetts homeowners now at a rate of more than 2,000 a month, with about 1,000 homes being sold at foreclosure auctions, the Warren Group’s numbers show."

Read The Boston Herald Article

U.S. Foreclosure Notices Hit Record

The Boston Herald reported September 6, 2007 that foreclosure notices sent to U.S. homeowners over the spring hit a record.

The Mortgage Bankers Association released the data for April through June 2007. It was the third straight quarter that foreclosure notices broke the previous record.

Another frightening statistic is the number of home owners delinquent on their mortgage payments.

"The delinquency rate, which tracks the number of people who are behind in their payments but have not yet entered the foreclosure process, was also up sharply during the spring, rising to 5.12 percent of all loans, up nearly three-fourths of a percentage point from the same period a year ago."

Read The Boston Herald Article

Massachusetts Foreclosures Rise Sharply in July

Home foreclosure petitions in Massachusetts rose nearly 67 percent in July compared to July 2006, The Eagle-Tribune reported September 4, 2007.

The rise marks the 18th straight months the total number of foreclosure petitions in the Bay State surpassed the same month the previous year.

The Warren Group, a publisher of real estate data, released the statistics.

Petitions to foreclose are the first step in the foreclosure process and don't always end with the homeowner losing their home; however, home auction announcements in Massachusetts rose 130 percent in July compared with July 2006.

The Foreclosure Pain Continues

Foreclosures across the United States rose 93 percent in July compared to July 2006 and increased 9 percent compared to June 2007, the Houston Chronicle reported August 21, 2007.

"There were 179,599 foreclosure filings reported during July, up from 92,845 during the same period a year ago, Irvine-based RealtyTrac, Inc. said today. There were 164,644 foreclosure filings reported in June."

The above numbers translate into one foreclosure for every 693 American households.

Foreclosures increased in 43 states on a year-over-year basis in July, but five states — California, Florida, Michigan, Ohio and Georgia — accounted for more than half of the nation's total foreclosure filings.

According to RealtyTrac, Inc., Massachusetts ranks 9th in the country in foreclosures. New Hampshire ranks 34th and actually saw a decline in foreclosures in July 2007 compared to June 2007. One in every 580 Massachusetts household faced foreclosure.  One in every 2,946 households in New Hampshire faced foreclosure.

Massachusetts Ranks 9th in Foreclosure Filings, NH 34th

According to RealtyTrac, Inc., Massachusetts ranks 9th in the country in foreclosures filings.

Massachusetts saw a month-to-month increase of 48.64 percent in July 2007.

New Hampshire ranks 34th and actually saw a decline in foreclosures in July 2007 compared to June 2007.  On a month-to-month basis, foreclosure filings in the Granite State dropped nearly 54 percent.

One in every 580 Massachusetts household faced foreclosure. One in every 2,946 households in New Hampshire faced foreclosure. </p>

RealtyTrac, Inc. ranks as the third largest real estate site by MediaMetrix, and, for what it's worth, RealtyTrac Inc. calls itself the leading online marketplace for foreclosure properties.

NH Faced With Rising Foreclosures

Home foreclosures could reach about 2,000 next year, the Concord Monitor reported August 9, 2007.

The data comes from a report issued by the New Hampshire Bankers Association.

"While subprime loans open the door to homeownership for a greater portion of the population, the mortgages have become increasingly risky. In 2005 and 2006, some borrowers secured mortgages without making a down payment or providing documentation of their income, the report said. Some subprime loans began with relatively low interest rates, or as "interest-only" (where you initially pay only the interest on the mortgage), but later spiked in cost."

Although subprime loans make up only 13 percent of loans in the Granite State, such loans make up 70 percent of the foreclosures, according to the report. The number of subprime loans has surged over the past decade from about 1,700 to about 22,000.

New Hampshire had about 150 foreclosures last year, and is expected to have about 1,800 this year.

"Because housing prices aren't rising and lending standards are tightening, homeowners in need of money will find it difficult to refinance, contributing to foreclosures."

Read This Article

Subprime Lender Puts Hold On MA Foreclosures

A California lender, under pressure from state officials, agreed to postpone 2,200 Massachusetts foreclosures for 90 days, The Boston Globe reported July 12, 2007.

Obviously, this is a blessing from above for more than 2,000 homeowners.

"Attorney General Martha Coakley secured the 90-day foreclosure moratorium from Fremont [Loan & Investment], once the state's second-largest issuer of subprime loans, after she threatened in May to sue the California company over lending practices she alleged violated the state's consumer-protection laws, such as making mortgages without fully disclosing the terms."

According The Globe, Fremont provided loans to individuals clearly not in a position to repay.

"One such borrower was Patricia Sujballi, who in May 2006 purchased a two-family home in Dorchester. Fremont gave her a subprime mortgage for $529,000, even though she had just moved out of a homeless shelter, was unemployed, and her husband earned around $32,000 a year.

"Sujballi said she and her husband tried to get out of the Fremont loan at the closing when they realized they could not afford the $4,700 monthly payment, but said they were pressured by the bank's attorneys to sign it.

"Sujballi's home was foreclosed on June 15, and on Tuesday, the mother of two received a 72-hour notice to move out. Sujballi said she faces being homeless again. Coakley's action against Fremont, she said, 'is too late for me.'"

Sujballi's mortgage broker apparently made more than $9,500 on the deal.

Read This Article