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Massachusetts Foreclosure Statistics - Updated
Submitted by admin on Sun, 06/19/2011 - 2:41am
- Petitions to foreclose totaled 29,607 petitions, up 55% from 2006.
- Foreclosures totaled 7,653, up 145% from 2006 (3,130) and the highest number since the mid-1990s.
- Just under half of foreclosures in 2006 and 2007 involved owners with a subprime loan (including those who refinanced into a subprime).
2008 Massachusetts Foreclosure Statistics
- Petitions to foreclose in 2008 totaled 21,804, down 26% from 2007.
- A "right to cure" law that went into effect on May 1, 2008 with the goal of helping borrowers resolve delinquencies by giving them more time played a role in the decline. It requires lenders intending to file a petition to notify borrowers that they have 90 days to cure the default and give them lender and counseling contact information. At least initially, most lenders appeared to wait until the 90 day cure period expired before filing, resulting in a big drop in filings between May and August. Monthly filing have continued to remain below 2-3,000 petitions a month experienced before May 1.
- Foreclosure deeds totaled 12,430, up 62% from 2007 and up 397% from 2006 (3130). Click here for a chart detailing foreclosure activity from 2005-2008.
- Foreclosures continue to disproportionately affect multi-family properties (2+ units), compared to single family homes and condominiums. A National Low Income Housing Coalition (NLIHC) study found that multi-family properties accounted for 34% of the properties and 58% of the units foreclosed upon statewide between January 2007 and March 2008, though accounting for only about 11% of the state's housing stock, and noted that their share of foreclosures was rising. A more recent study confirms this, finding that multifamily properties accounted for 66% of total units with foreclosure petitions between October 1, 2007 and September 30, 2008. Overall, the NLIHC study estimated that rental units made up 44% of all units foreclosed upon in that period.
2009 Massachusetts Foreclosure Statistics
9,269 foreclosure deeds were recorded in Massachusetts throughout
October2009, representing a 13% decline from the 10,603 completed foreclosures during the same period in 2008.
- There were 19,441 auction announcements in 2009.
- According to The Warren Group, a number of factors have helped temper foreclosure activity in Massachusetts, including federal efforts to offer loan modifications to trouble borrowers and a Massachusetts Land Court decision forcing some lenders to hold back on foreclosure proceedings until proper mortgage assignments have been made.
2010 Massachusetts Foreclosure Statistics
- 12,233 foreclosure deeds were recorded in Massachusetts throughout 2010, representing a significant over completed foreclosures during the same period in 2009.
- The number of foreclosure petitions declined 14% to 23,933 in 2010, down from 27,928 in 2009.
- There were 29,227 auction announcements tracked in 2010, a 51% increase from 19,441 in 2009.
2011 Massachusetts Foreclosure Statistics (through October)
- A total of 6,963 foreclosure deeds were filed through October, 2011, a 39 % decrease compared to 11,334 deeds recorded during the same period in 2010.
- From January through October, 14,354 auctions were announced, a 45% decline from 26,049 auctions during the same period in 2010.
More Massachusetts Statistics:
The Massachusetts Housing Partnership produces a quarterly Foreclosure Monitor, an effort by MHP to help public officials and community leaders determine how best to use their resources to help homeowners and neighborhoods hard-hit by foreclosure. Using data from The Warren Group and other sources, Foreclosure Monitor is focused on what's happening in the Massachusetts real estate market, how we compare to other states, where foreclosures are happening and what types of properties are being hard hit.
Profile of Foreclosures
A 2007 study of foreclosures found:
- 53% involved properties purchased with no money down (40%) or less than 5% down.
- 45% of properties were owned less than 3 years (including the 6+ months it took to foreclose).
- 45% involved subprime loans including 30% who initially purchased their homes with subprime loans and another 15% purchased with a prime loan and later refinanced into a subprime loan; the remaining 55% had prime mortgages.
- 28% of the foreclosed properties (2006-2007) were multi-family (2+ units), 58% were single family homes and 13% were condominiums.
- Interest resets were not a major contributor to foreclosures, as most borrowers with adjustable rate mortgages who went into default did so before their reset.
- Foreclosures are hurting renters as well as owners, due to disproportionately high rates of foreclosure on multifamily buildings. While 2-4 unit properties make up only 10% of the state's housing stock, they accounted for almost 30% of foreclosures in 2007.
- Statewide, multifamily properties represented 34% of the properties that began foreclosure proceedings between January 2007 and March 2008 (and 58% of the units in those properties). Owners of multifamily properties are far more likely to have purchased or refinanced with a subprime loan than owners of single family homes or condos and are defaulting much more quickly.
Foreclosures have been disproportionately concentrated in low and moderate income neighborhoods (zip code areas with median incomes <80% of the state median). In 2007, 44% of all foreclosed properties were in low and moderate income areas (though these areas are home to only 17% of all mortgaged properties) and one quarter (25.6%) were in areas with high levels of minority residents (though home to only 15% of all mortgaged properties).