Massachusetts Home Buyer Guide

Only 254 foreclosure petitions in Massachusetts were recorded in June 2013, an 84 percent decrease from the 1,548 foreclosure petitions recorded in June 2012, The Warren Group, publisher of Banker & Tradesman, reported July 30, 2013. 

Foreclosure petitions are the first step in the foreclosure process in Massachusetts. From January through June this year, 2,943 petitions to foreclose have been filed statewide, a decline of almost 69 percent from 9,425 during the same period in 2012. The June petition numbers were the lowest since The Warren Group began tracking foreclosure data in 2006. 

An increase in home prices, lenders' willingness to modify home loans and a slightly improved economy have certainly rescued some homeowners from losing their home to foreclosure, and the decline of "shadow inventory" has played a role too. 

CoreLogic, a national provider of residential housing data, reported on July 9, 2013, that shadow inventory across the United States had declined to less than two million homes. Shadow inventory stood at 5.3 months supply in April 2013. The inventory as of April represented an 18 percent year-over-year decrease. CoreLogic also reported shadow inventory was 34 percent lower than the 2010 peak of 3 million. For its estimate, CoreLogic counts unlisted properties that are seriously delinquent, in foreclosure, or held as REOs as shadow inventory. The value of shadow inventory was $314 billion as of April 2013, down from $386 billion in April 2012 and down from $320 billion six months prior, in October 2012.

Massachusetts foreclosure deeds, which represent completed foreclosures, decreased more than 56 percent to 329 in June, down from 754 deeds in June 2012. Despite the decrease, June foreclosure deeds were the highest number of deeds in 2013. A total of 1,575 foreclosure deeds have been recorded in the first six months of the year, a decline of almost 67 percent from 4,765 foreclosure deeds in the first half of 2012.

In the second quarter, foreclosure activity also decreased in Massachusetts. Second quarter foreclosure petitions plummeted 83 percent to just 863, down from 5,077 during Q2 2012. Completed foreclosures in the second quarter declined almost 65 percent to 814 from 2,302 during Q2 2012.

The number of advertised auction notices also declined during the month of June. There were 607 auction announcements in June, a 45 percent decrease from 1,109 a year ago. Through the first half of 2013, auction notices decreased more than 68 percent to 2,567 from 8,132 last year.