Mass. Home Foreclosures Hit Low For '12

The number of property foreclosures in the Bay State reached their low for the year in August, a potential indicator of a rebound in the housing market, The Warren Group announced.

During the month, lenders completed 566 foreclosures in Massachusetts, marking the third consecutive month of year-over-year decreases in foreclosure deeds, and a 40-percent drop from August 2011. Locally, foreclosure deeds fell 16 percent in Worcester County, to 132, and 52 percent in Middlesex County, to 66, according to data from Boston-based Warren Group.

It's also the smallest number of completed foreclosures in any month since February 2011, The Warren Group said.

However, foreclosure petitions, which launch lenders' attempts to take over properties, rose 4.2 percent in August over the previous August. Statewide, there were 1,456 petitions. In Worcester County, the number of petitions rose at a slower 2.5 percent, while petitions in Middlesex County fell 7 percent.

Nonetheless, foreclosure starts in the Bay State for all of 2012 are close to exceeding last year's total, which is "a seemingly bad sign," said Cory S. Hopkins, editor of Banker & Tradesman, which is owned by The Warren Group. "I don't think this is cause for much alarm, but something to keep an eye on as foreclosure petitions are often a leading indicator of activity to come."

But Hopkins touted the drop in foreclosure deeds as potentially good news. "As banks continue to return to more normal foreclosure procedures and the housing market follows the same path, we are likely to see more good news in coming months."

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