What's Up With the Increase in Massachusetts Foreclosures?

October Marked the 20th Straight Month of Year-over-year, Double-digit Increases in Foreclosure Petition Filings

The number of Massachusetts foreclosure petitions recorded in October increased 17.6 percent to 1,135 compared with 965 recorded in October 2014, The Warren Group, publisher of Banker & Tradesman, reported December 3, 2015. 

October marked the 20th consecutive month of year-over-year, double-digit increases in foreclosure petition recordings. Through October there were 9,633 petitions recorded, a 50.9 percent increase from 6,384 petitions in the first 10 months of 2014.

By comparison, there were 1,458 foreclosure petitions in Massachusetts in October 2012, according to The Warren Group. Through October 2012, there were 15,334 foreclosure petitions recorded. 

A foreclosure petition is the first public step in the Massachusetts foreclosure process. It is when lenders file a notice of intention to foreclose with the Land Court. Not all foreclosure petition filings result in a completed foreclosure. 

While all counties have seen a significant uptick in foreclosure starts in 2015, the state's western counties have had the greatest growth when comparing the first 10 months of 2014 and 2015. Hampshire County nearly doubled the number of foreclosure petitions in 2015 compared to 2014, with 94.4 percent increase. Belchertown, MA, Northampton, MA and Ware, MA each have had more than 100 percent foreclosure petition growth year-over-year. The economy is recovering more slowly in Western Massachusetts.

The eastern and central counties still have by far the highest number of foreclosures. That isn't a surprise given that the majority of the state’s population lives in those counties. Worcester County leads the way with 1,774 foreclosure petitions through October 2015. 

The general consensus in the real estate industry is that the increase in foreclosure activity over the past 20 months is due to lenders finally moving forward with foreclosing on long delinquent loans.  Lenders put the breaks on many foreclosures as a result of court cases and regulatory changes that had to be considered.

Despite the increased activity, homebuyers may not want to rush into purchasing a foreclosed property without competent advice. 

There were 374 foreclosure deeds – the final step in the Massachusetts foreclosure process – recorded in October, an 11.6 percent decrease from the 423 recorded in October 2014. Foreclosure deeds represent completed foreclosures and a change in ownership.

Through October there were 3,533 foreclosure deeds recorded in 2015, a 19.4 percent increase from the 2,960 deeds recorded through October 2014. 

Statewide there were 767 foreclosure auctions scheduled in October, a 20.2 percent increase from October 2014 when there were 638 auctions scheduled. There were 5,695 auctions scheduled through October, a 28.6 percent increase from the 4,444 auction notices during the same 10-month period in 2014. An auction is scheduled through legal advertising in local newspapers, with the lender giving the time, date and address for the auction to take place.