Bay State Foreclosure Numbers Reverse

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After rising for seven consecutive months, foreclosure starts and deeds in Massachusetts hit their lowest level of the year in July, according to The Warren Group.

With a total of 1,198 initiated foreclosures in July, year-over-year petitions were down almost 17 percent, the group said. It beat out January's low for the year of 1,333, as well. Foreclosure deeds fell to 648 in July, 17 percent below July 2011. It was the slowest month since May 2011 when there were 571 foreclosure deeds.

Foreclosure activity in Central Massachusetts was on par with the state overall. July starts in Worcester County were down from 261 in 2011 to 210 this year, while deeds were down nearly 3 percent from 149 to 145. Meanwhile, foreclosure starts in Middlesex County were down 19 percent in July, from 221 down to 179. Norfolk County saw a similar drop of 18 percent, from 114 to 93.

"It appears there is a downward trend in foreclosure activity," said Warren Group CEO Timothy M. Warren Jr. "A strong economy and recovering housing market is helping lift consumer confidence. This news, paired with banks' return to standard foreclosure processes, is also helping."

However, foreclosures starts and deeds are still up from this time last year. The Warren Group said foreclosure initiations are up 55 percent from this time in 2011, as 10,623 have been started this year, compared to 6,856 by the same time last year. Meanwhile, 5,409 foreclosure deeds have been filed so far in 2012, up 18.5 percent from last year's 4,564.

"Foreclosure activity has been fluctuating for the past year or so – slowing after several banks delayed and examined their own proceedings, and then ramping back up," Warren said. "It appears we're seeing a clearer picture now – less starts and deeds, which means homeowners are making payments and working out defaults through short sales and loan modifications."

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