Foreclosure Flames Leaping High
Essex County is on fire with foreclosure flames leaping up high. In 2007 it outdid other regions of Massachusetts, according to real estate groups tracking details online.
The jump was concentrated during October – a 75% increase as compared to the same month in 2006. During the first 10 months there were 3,152 foreclosure filings as against 1,802 in the previous year. Across the state the foreclosure petitions rose by 63% to touch 24,155. From January to October 2006 the number was 14,847. The figures are based on court records.
The foreclosure figures show that the increase is badly hitting the real estate market. This means there are many out there beyond the foreclosure net who might soon be sucked in as house prices tumble. The problem seems to be becoming more and more intense according to a spokesperson representing The Warren group of publications. A foreclosure notice does not invariably mean that the property will be auctioned off because the house owner might find ways and means to stave it off. But whatever that is – the number of foreclosure listing is increasing at an alarming rate.
During the first 10 months of 2007 Gloucester had 69 petitions as against 59 in the previous year. In Haverhill the listings rocketed from 237 to 366, in Salem it went up from 104 to 159 and the worst offender was Essex where it increased from 383 to 683. This points to the fact that the urban areas are worst hit. The highly dense areas of Lynn, Lawrence and Salem are sure to be badly hit.
The main reason for the rise is that a new group of borrowers who had opted for the sub-prime mortgages are ready to be told that their interest rates will go up. This shows that the Bush announcement to freeze rates has not had the desired sweeping effect. The deadly foreclosure menace is gripping in its embrace not only the borrowers but lenders as well who do not know how to cope with the money crunch and the weight of unsold properties – properties running into thousands and thousands. The local administration is suffering because taxes are not coming. On top of that they have to care for abandoned units that are attracting crime and nefarious activities. There is an eerie deserted look about many localities. Dispossessed families mean pressure on rentals and government shelters.
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