Foreclosures in Massachusetts

April 9th, 2008

Since the last twelve months the number of foreclosures in the 351 cities/towns of Massachusetts increased considerably. In 74 communities that rise was as high as 75%. In the city of Lynn, Essex County, the increase was the highest – 83.3%, according to reliable online sources tracking the foreclosure performance across the state. In Lynn there have been 987 foreclosure postings over the year – a year by year rise of 83.37%. The first two months of 2008 saw 30% spikes while the fourth financial year of 2007 recorded the highest number of foreclosures in the history of the state. The predictable forecast is that the present pace of foreclosures will continue during the forthcoming months and about 34,500 to 37,500 filings are apprehended. 31,516 foreclosure proceedings were initiated by lenders against borrowers from the beginning of March 2007 to the end of February 2008. It calculated to a year by year increase of 45.6%. Dukes, Nantucket, Suffolk and Essex Counties saw foreclosure increases by 100%, 64.7%, 63.1% and 58.5% respectively. Barnstable and Middlesex Counties showed 54.8% and 53% increases respectively.

The year 2007 seems to be the worst in the history of Massachusetts and this gloom for house owners will continue through the current year. The last two quarters of the previous year broke all records. Regulators are unable to keep pace with the surging tide of foreclosures. The house owners should not wait for miracles to happen but immediately seek professional help before the ball starts rolling – and not when it has been set in motion.

The Attorney General, Coakley, has said in a recent strong letter that it is a fact that the foreclosure situation in Massachusetts has reached ‘frightening proportions’. She has stressed that her main work is to ‘concentrate a great deal of my practice in the area of foreclosure’ – her target being the victims of unscrupulous lending. A website has been launched to bring about general awareness of the foreclosure issue. It also links the victims with bonafide housing counselors. Coakley also aims to increase her work to encourage people to purchase pre-foreclosed or foreclosed units It is expected that this should help to put back the real estate market on its rails. There are dedicated professionals in the mortgage industry who are trying all out to stem the disastrous tide engulfing not only Massachusetts but the entire country. It is the ‘few bad apples’ that have inflicted this damage and need to be identified.