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Do Home Buyers Have Another Chance to Purchase a Foreclosure in MA?

Written by Rich Rosa | Jun 5, 2014 3:45:00 PM

For home buyers who missed the chance to purchase a foreclosure a few years ago when Massachusetts foreclosures and short sales were plentiful, a very small window of opportunity may be opening, according to data released June 5, 2014 by The Warren Group, publisher of Banker & Tradesman.

The number of foreclosure petitions in Massachusetts increased 126.3 percent in April compared to April 2013. April's increase follows a 133.2 percent year-over-year increase in March. A foreclosure petition is the first step in the Massachusetts foreclosure process. Not every foreclosure petition filed will result in a completed foreclosure. In fact, with the increase in home prices over the last two years, some homeowners facing foreclosure may simply sell their homes to avoid foreclosure. 

Many of these foreclosures have been in the pipeline, so to speak, for some time, and lenders are finally moving forward after emerging from a heap of governmental regulations and lawsuits. If in fact some foreclosure properties become available, home buyers likely will face strong competition from investors flush with cash.

In addition, these properties may not be well suited for first-time home buyers. If the properties have been languishing without any care for many months or even years, the potential issues could be varied, vast and very expensive. 

Lenders filed 740 foreclosure petitions in April compared with 327 filings in April 2013. April also marked the highest number of foreclosure petitions filed so far in 2014. A total of 2,203 petitions were filed in the first four months of this year, an 8.2 percent decrease from the 2,400 petitions filed during the same period in 2013. 

The number of foreclosure deeds recorded in April decreased 26.4 percent compared to April 2013. Foreclosure deeds are the last step in the Massachusetts foreclosure and represent completed foreclosures. There were 173 foreclosure deeds filed in April compared to 235 foreclosure deeds in April 2013. Through April, there were 927 foreclosure deeds recorded, a 7.1 percent decrease from the 998 deeds filed during the first four months of 2013. 

The Warren Group also tracks auction announcements. There were 379 auction announcements filed in April, a 0.8 percent increase from the 376 auction announcements filed in April 2013. Overall, auction filings have decreased by 30.3 percent through April to 1,030 filings compared with 1,478 filings during the first four months of 2013