Massachusetts Foreclosure Deeds Hit New High

June 30, 2008 No Comments »

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Foreclosure deeds hit an all-time high in the state of Massachusetts last month, according to The Warren Group, a local real estate information provider.

The company said 1,405 foreclosure deeds were reported last month, up 5.3 percent from the 1,334 recorded in April, and more than double the 677 filed in May 2007.

Foreclosure deeds, filed at the end of the foreclosure process, have risen steadily since 2005, jumping over 1000 percent in the state thanks to the ongoing mortgage crisis.

Conversely, petitions to foreclose, the first step in the foreclosure process, slid to a total of just 390 during the month, down 82 percent from the same month a year earlier thanks to a recent moratorium.

A record 3,327 petitions to foreclose were filed in April and 2,158 were filed in May 2007, forcing the state to pass legislation extending the period of time mortgage lenders must wait before initiating foreclosure proceedings from 30 to 90 days.

But Warren Group chief executive Timothy Warren Jr. noted that the decline will definitely be temporary, and expects petitions to foreclose to surge once the law has been in effect for 90 days.

Last week, the company said single-family home sales in Massachusetts fell nearly 13 percent compared to May 2007, while the median price slipped 7.8 percent to $322,500.

(photo: bitterroot)

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