Massachusetts Home Buyer Guide

The number of foreclosures in Massachusetts spiked in May and increased through the first five months of the year as well, The Warren Group, publisher of Banker & Tradesman, reported June 30, 2015.  

Foreclosure deeds – the final step in the Massachusetts foreclosure process – increased 82 percent in May, with 344 deeds recorded compared to 189 foreclosure deeds in May 2014. A total of 1,623 deeds were recorded January through May, an 18 percent increase from the 1,374 deeds recorded during the same five-month period last year.

Foreclosure petitions  – the first step in the Massachusetts foreclosure process – increased 53 percent compared with May 2014. Despite talk of the foreclosure crisis being finished, May marked the 15th consecutive month of increases in recorded foreclosure petitions. Lenders clearly have many old, delinquent mortgages in the pipeline. 

Lenders recorded 878 petitions to foreclose in May compared to 573 petitions in May 2014. A total of 4,430 petitions were recorded in the first five months of the year compared with 2,776 petitions recorded during the same period in 2014, a nearly 60 percent increase.

The number of auction announcements tracked by The Warren Group declined 7.5 percent in May. There were 571 auction announcements recorded compared to 617 announcements filed in May 2014. Through May auction announcements increased 58 percent, with 2,655 auction announcements recorded compared with 1,680 in the first five months of last year.

Is the recent rise in Massachusetts foreclosures an opportunity for home buyers? Maybe. Maybe not. Buying a foreclosed property may be an opportunity, but it comes with risks as well. Not every foreclosure is a good deal. In fact, many foreclosures are not good deals.