Safe to Say the Massachusetts Foreclosure Crisis is Over?

The number of foreclosure deeds – the final step in the Massachusetts foreclosure process – peaked at 1,391 foreclosures in March 2010, but there were only 280 foreclosure deeds recorded in February 2014, The Warren Group, publisher of Banker & Tradesman, reported April 1, 2014. 

The number of foreclosure petitions, which is the first step in the foreclosure process, declined 48.7 percent in February compared to February 2013. February marked the 16th consecutive month that foreclosure petitions in Massachusetts have decreased on a year-over-year basis. There were 439 foreclosure petitions recorded in February compared to 856 petitions in February 2013. There were 364 petitions recorded in January 2014. Not all foreclosure petitions will result in a homeowner losing his or her home to foreclosure.  

Despite the decline in foreclosure petitions, there were 280 foreclosure deeds filed statewide, a 16.2 percent increase from 241 foreclosure deeds recorded in February 2013. Foreclosure deeds represent completed foreclosures. There also were 280 foreclosure deeds recorded in January 2014. The last month that the number of foreclosure deeds exceeded 500 was September 2012. 

The rising median home price in Massachusetts certainly is playing a role in the decline in foreclosures. Previously underwater homeowners are now able to sell their homes before facing foreclosures. 

The Warren Group also tracked a drop in auction announcements in February. A total of 152 auction announcements were tracked in February, a 58 percent decrease from 365 auction announcements in February 2013.