Mass. Foreclosure Deeds Jump In October From Prior Month, But Dip From A Year Ago

Foreclosures in Massachusetts rose nearly 30 percent in October from the previous month, but 85 fewer foreclosures were recorded compared to the same month last year, according to the latest report by The Warren Group, publisher of Banker & Tradesman. At the same time, the number of foreclosures initiated in October dropped 9 percent from September but climbed 11 percent from a year earlier.

"The number of foreclosures in October was actually the third highest so far this year. But the pace of foreclosures is still lower than it was last spring and summer when there was an average of nearly 1,200 foreclosures a month," said Timothy M. Warren Jr., CEO of The Warren Group. "Still, a key concern is the level of petitions to foreclose, which indicate how many distressed property owners are at risk of foreclosure in Massachusetts. Lenders have filed an average of over 2,500 foreclosure petitions a month since May."

Petitions to foreclose, the first step in the state's foreclosure process, fell 9.1 percent to 2,296 from 2,527 in September but rose 11.2 percent from 2,065 in October 2008. Year-to-date foreclosure petitions have jumped 27 percent to 23,931 from 18,844 in 2008.

Foreclosure deeds, which represent completed foreclosures, rose 29.6 percent to 911 in October from 703 in September but declined 8.5 percent from 996 in October 2008, according to The Warren Group. So far this year, a total of 7,707 foreclosure deeds have been recorded statewide, down 27.3 percent from 10,606 in 2008.

The Warren Group noted that several factors have helped temper foreclosure activity, including federal efforts to offer loan modifications to troubled borrowers and a Massachusetts Land Court decision which has forced some lenders to hold back on foreclosure proceedings until proper mortgage assignments have been made. In addition, a state law that went into effect in the middle of last year slowed the rate of foreclosure petition filings because it requires lenders to give delinquent borrowers 90 days to catch up with missed payments before starting a foreclosure proceeding.

October auction announcements surged 38 percent to 2,592 from 1,878 in September and 57.3 percent from 1,648 in October 2008. The Warren Group has tracked a total of 15,273 auction announcements from January through October, down 9.8 percent from 16,930 the prior year.