The number of foreclosure deeds recorded in Massachusetts soared 72 percent in the first three quarters of 2008 compared to a year ago, according to The Warren Group, publisher of Banker & Tradesman.
Meanwhile, foreclosure petitions, which represent the first step in the foreclosure process, shot up in September compared to the summer months.
A total of 9,609 foreclosure deeds have been recorded from January through September, up from 5,593 during the same period in 2007. Foreclosure deeds rose 18.6 percent to 798 in September from 673 in September 2007. Still, the number of foreclosure deeds filed has declined for four consecutive months and September represented the fewest number of deeds recorded in any month this year.
Lenders filed 2,258 petitions to foreclose in September, a 12 percent decline from 2,566 in September 2007. But September’s foreclosure petitions were more than double the 943 petitions filed in August and more than four times the 502 petitions in July. The sharp increase comes after a temporary decline that occurred because of a new state law that went into effect May 1 which postponed the first step of the foreclosure for many delinquent homeowners. The law requires lenders intending to foreclosure to give borrowers 90 days to cure a mortgage default.
“September’s foreclosure petition activity is nearing the level we saw during the first four months of the year before the so-called ‘right to cure law’ went into effect. During that period, lenders were filing about 3,000 foreclosure petitions a month,” said Timothy Warren, CEO of The Warren Group. “This is a signal that foreclosure activity hasn’t peaked. Even though foreclosure deeds have declined for four consecutive months, the increase in petition activity shows that there are borrowers who are struggling to save their homes even as the slumping housing market makes it harder for them to refinance into more workable loans or to sell their properties.”
Cities like Worcester and Springfield have experienced the greatest number of foreclosures this year. Worcester (572), Springfield (521), Boston’s Dorchester neighborhood (509) and Brockton (452) led the state in foreclosure deeds recorded.
Auction announcements continued to climb in September. Auction announcements increased 10.3 percent to 1,446 in September from 1,311 a year ago. Year-to-date auction announcements jumped 34.2 percent to 15,244 from 11,359.