Foreclosure rates soar in Massachusetts

Monthly figures released for March 2010 show the number of foreclosure cases in Massachusetts surging, rather than abating.

Foreclosure petitions, filed at the start of the process while the owners are typically still using their property, increased 21.6% in March according to data compiled by the Warren Group and publicized in the Boston Globe.

Foreclosure deeds, filed at the end of the process after a property has been taken by lenders recorded their highest rate in a year.

This sets up the possibility that bank-owned properties could flood the market, stalling any recovery in home prices.

“Many of the newest foreclosures, he said, are related to subprime mortgages signed in 2006 and 2007. He blamed lenders for not helping homeowners, despite an array of government incentives to encourage them to do so.

“Nobody is modifying these people’s mortgages, ’’ said [Cambridge attorney Paul] Collier, who represents homeowners fighting foreclosure. “It is purely a rush to continue to foreclose on the homes of people in economic stress.’’

Also of interest is that the foreclosure problem is migrating to more affluent communities such as Belmont and Andover.

A bankruptcy case may avert or delay a foreclosure, especially if the homeowners discuss their situation with a bankruptcy attorney relatively early in the process.

 

By Doug Beaton

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