MetroWest Sees Big Increase In Foreclosure Starts
Foreclosures starts in the MetroWest region have picked up steam this year, keeping pace with a statewide trend, according to data from the Warren Group.
October data released Monday by the real estate tracking firm and publisher of Banker & Tradesman show foreclosure petitions – the way in which lenders initiate foreclosure proceedings – are up 36 percent, or 334 petitions, for the year compared to the first 10 months of 2011 in the 41 communities of MetroWest. That compares to an increase of 45 percent for the entire state during the same period.
Low Number of Completions “Astounding”
Starting a foreclosure proceeding is one thing, but finishing it is another.
Timothy Warren, CEO of the Warren Group, said this week in his podcast that increasing petitions are a troubling sign, though he noted the October numbers were below the monthly average so far for 2012.
More striking, Warren said, is that there were only 371 foreclosures completed in October in the state, the lowest monthly total in 69 months, which Warren described as "astounding."
Warren cited state and federal laws that are pushing lenders to modify or refinance loans as a reason for falling completions.
"Loan modifications and short sales are playing a big role in the dropping number of foreclosure deeds," Warren said. "Forcing more modifications and refinancing is having an impact on preventing lenders from completing foreclosures on delinquent borrowers."
The October completion trend was also down in MetroWest, where 30 foreclosures were completed during the month, a decline of 48 percent compared to the same month last year.
However, the region differs from the statewide trend so far this year. As of October, competitions in MetroWest were up 7 percent for the year. Statewide, there has been a decline of 2.5 percent.
Foreclosure auctions are down so far this year in both MetroWest and across the state, by 18 percent and 15 percent, respectively.
Bellingham Cracks “Distressed” List
To be sure, the MetroWest region, which has lower unemployment rates and higher median incomes than many parts of Massachusetts, has not suffered the foreclosure crisis to the same extent as greater Worcester and the South Shore.
In fact, only one MetroWest community – Bellingham – even cracks the top 30 most foreclosure-distressed communities in the state.
According to the Massachusetts Housing Partnership's Foreclosure Monitor publication, Bellingham has 16.4 "distressed" properties per thousand as of October, which ranks it as 28th in the state.
A distressed property is a one-to-three-unit residential property where a petition has been filed or a foreclosure auction scheduled in the previous year, or one that has been bank owned, for up to two years.
That keeps Bellingham down the list from communities like Fitchburg, which has 20.2 distressed units per thousand, and Worcester, which has 17.1. The top community in the state as of October is Brockton, with 27.8.
Of the 41 communities in MetroWest, 35 had more foreclosures starts as of October when compared to last year. The largest increases in foreclosure starts in the region so far this year have been seen in Westford (+77 percent), Foxborough (+76 percent), Shrewsbury (+57 percent) and Chelmsford (+56 percent).
Image credit: www.freedigitalphotos.net
WBJ Web Partners
Most Recent
Most Recent
0 Comments