Although both the number of foreclosure petitions and foreclosure deeds recorded in Massachusetts increased in July, the foreclosure crisis is a thing of the past.
On the other hand, the recent increase in Massachusetts foreclosures may provide an opportunity for some home buyers to purchase an affordable home; however, home buyers need to be prepared for homes that in most cases need substantial repairs and improvements that will require tens of thousands of dollars just to make the property livable.
Foreclosure petitions – the first step in the foreclosure process in Massachusetts – increased 49 percent to 1,044 petitions in July compared to 702 foreclosure petitions recorded in July 2014, The Warren Group, publisher of Banker & Tradesman, reported September 1, 2015. July marked the 17th straight month of petition filing increases. From January through July, there were 6,360 foreclosure petitions recorded, a 60 percent increase compared to July 2014. Not all foreclosure petitions result in a completed foreclosure.
There were 386 foreclosure deeds – the final step in the Massachusetts foreclosure process – recorded in July, a 77 percent increase from the 218 foreclosure deeds filed in July 2014. Through July the number of foreclosure deeds increased 27 percent to 2,416 compared to 1,897 deeds recorded during the first seven months of 2014.
There were 574 auction announcements in July, a 1.5 percent decrease from the 584 announcements filed in July 2014. In comparison, there were 1,356 auction announcements in November 2011. During the first seven months of 2015, auction announcements increased 35 percent to 3,761 auction announcements compared to 2,789 auction announcements during the same seven-month period in 2014.
An auction announcement is a lender's declaration that efforts to repair the loan with the borrower have failed, and the property will go up for auction.