New Law Creates Temporary Lull in Massachusetts Foreclosure Filings
2008-06-16 18:42:32 -
www.ForeclosuresMass.com - ForeclosuresMass.com Derek Beckwith, 617-331-3567 derek@beckwithpr.com ForeclosuresMass.com, the leading provider of Massachusetts foreclosure data for investors, real estate professionals and mortgage brokers, released its latest Massachusetts Market Analysis Reports today. The reports, which analyze foreclosure filing data from April and May 2008, revealed that new foreclosure regulations which went into effect on May 1, 2008 will produce a temporary lull in foreclosure filings until the end of July. April's 3,414 foreclosure filings set a new record, while May filings plummeted to 392 - an 88.52 percent drop.
The reason for the short term drop in filings is due to a mandated extension before lenders can take foreclosure action in Land Court. On November 29, 2007, the Governor of Massachuetts signed Chapter 206 of the Acts of 2007, An Act Protecting and Preserving Home Ownership, into law to address the historic foreclosure levels in Massachusetts. One of the provisions of Chapter 206 includes a 90-Day "Right To Cure" after default on mortgage loans for 1-4 family, owner-occupied residential property. Previously the "Right To Cure" period was 30 days. Therefore, lenders must wait an additional 60 days before foreclosure proceedings can begin in Land Court against homeowners who have defaulted on their mortgages.
"We are in the midst of a Foreclosure Tsunami here in Massachusetts, and this storm is not going away any time soon. The new filing requirements have created a situation similar to the eye of a hurricane -- it may seem calm now, but the storm will come raging back with even more force in the days ahead," said Sheila Farragher-Gemma, co-founder of ForeclosuresMass.com. "The fact is that nothing has changed in the Massachusetts real estate market. More homeowners than ever before are defaulting on their loans, and we expect that we will return to historic foreclosure filing levels within weeks."
Farragher-Gemma cautioned that homeowners facing foreclosure should not wait for a miracle cure to this problem; rather they should seek the help of qualified professionals to help them avoid foreclosure. ForeclosuresMass.com's educational programs help investors, real estate agents and mortgage brokers learn the ins and outs of dealing with foreclosure situations.
Highlights of the Latest ForeclosuresMass.com Massachusetts Market Analysis Reports:
-- Lenders initiated 32,018 foreclosures statewide against homeowners in the 12 months from June 1, 2007 to May 31, 2008, a year over year increase of 35.45%.
-- In the past 12 months foreclosures are up in 267 of the state's 351 communities, with 117 communities experiencing at least a 50 percent increase in filings.
-- April 2008 saw 3,414 filings, the single highest month on record (the previous high was January 2008 with 3,230), and 70.53 percent higher than the 2,002 filed in April 2007.
-- May 2008 saw 392 filings because of the mandated extension before foreclosure action can be filed in Land Court.
-- In the past 12 months Nantucket, Dukes, Suffolk, Essex, Middlesex, Worcester and Barnstable Counties all experienced increases above the statewide average. Nantucket County saw a 138% increase (38 v. 16), Dukes County experienced a 98% increase (107 v. 54), Suffolk County had a 51% increase (3,980 v. 2,629), Essex County filings jumped by 48% (4,294 v. 2,896), Middlesex County experienced a 43% increase (5,105 v. 3,564), Worcester County saw a 36% increase (4,967 v. 3,646), and Barnstable County filings jumped by 36% (1,580 v. 1,158).
-- In the past 12 months 3 communities with at least 10 foreclosures have seen their rates at least triple: Phillipston (375% increase, 19 v. 4), Belmont (233% increase, 40 v. 12), and Sheffield (200% increase, 12 v. 4).
-- In the past 12 months an additional 13 communities with at least 10 foreclosures have seen their rates double: Freetown (183%), Medfield (154%), Framingham (145%), Nanticket (138%), Oak Bluffs (131%), Chelsea (128%), North Brookfield (124%), Weston (122%), Tisbury (117%), Marlborough (105%), Winthrop (105%), Ashby (100%) and Medway (100%).
ForeclosuresMass.com attributes the foreclosure increase to a "perfect storm" of factors. The pressures put on property owners include the effects of adjustable rate mortgages, sub-prime and other 'exotic' loans, the distressed lending market, decreased property values, substantially increased gasoline and home heating costs, and the slumping economy.
For a full copy of the report, visit www.ForeclosuresMass.com and click the "media inquiries" link at the bottom of the homepage.
Through its website, www.ForeclosuresMass.com, members gain immediate access to the most current and detailed foreclosure information available in the marketplace. Previously this data has been available only to brokers, investment professionals, or those able to do the time-consuming research.
ForeclosuresMass.com was founded to take the "distress" out of purchasing distressed properties. Often, ForeclosuresMass.com members learn of properties weeks or months before public notices are issued and are able to purchase a property long before it reaches auction stage, providing a "win-win" outcome for both property owner and new buyer.
About ForeclosuresMass.com
Founded in 2003, ForeclosuresMass.com is the industry leader in providing online Massachusetts foreclosure data to investors, consumer homebuyers, bankruptcy and real estate counsel, mortgage originators, real estate agents and lenders. Its rich website offers unique value especially to investors, assisting buyers in acquiring reliable advance data on the availability of foreclosure properties. ForeclosuresMass.com educational programs provide hands-on advice, practical information, market analysis and a step-by-step process for creating successful opportunities for property owners and investors. Since 2003, over 76,000 Massachusetts foreclosed properties have been posted on the company's website. Visit www.ForeclosuresMass.com for more information.
¶ -- 60-Day Extension in Foreclosure Filing Law Will Produce
Artificially Low Numbers Into July
¶ -- April Foreclosure Filings Highest on Record; May Filings Drop
by Over 88%
¶ -- Temporary Lull is Similar to the Eye of a Hurricane - the
Foreclosure Storm is Guaranteed to Return in Full Force
