Warren Group: Plummeting Foreclosures Show Crisis Has Passed

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Foreclosure petitions in Massachusetts, the first stage in the foreclosure process, continued their decline in May, plummeting 86 percent to 248, compared with 1,779 a year ago, according to The Warren Group.

It was the first time in eight years that foreclosure starts dropped below 250 and was the lowest number on record for The Warren Group, which began tracking the data in 2006. It's also significantly beneath the previous 2013 low, which was 370 in April. Year to date, foreclosure petitions statewide have dropped 66 percent over 2012, to 2,698.

In Worcester County, foreclosure starts dropped more than 88 percent in May, to 36. Year-to-date, they were down 63 percent, to 503. The situation was almost identical in Middlesex County, where starts dropped 84 percent in May, to 44, and were down more than 67 percent for the year, to 381.

"This month's data further supports our argument that the foreclosure crisis is behind us. The combination of a recovering housing market and banks' willingness to allow for loan modifications has helped suppress foreclosure levels," said Timothy M. Warren Jr., CEO of The Warren Group. "Legislation passed last year that forces lenders to consider alternatives to foreclosure is also contributing to the decrease as lenders revamp their foreclosure procedures to comply."

Meanwhile, foreclosure deeds, representing completed foreclosures, were down more than 68 percent, to 251 in May. Total foreclosure deeds for the year were down 69 percent, to 1,246 compared with 4,011 last year.

Foreclosure deed activity in Middlesex County mirrored the state's, declining 69 percent in May and 68 percent for the year. Meanwhile, Worcester County saw foreclosures drop 62 percent in May and 64 percent for the year.

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