Houses Facing Foreclosures

Posted in Foreclosures, April 2nd, 2008 |

In Massachusetts certain types of properties are more in number in the foreclosure market during February. This is from a report issued by The Warren Group – publishers of Banker and Tradesman. The worst hits are the two and or three family houses in comparison to the one family houses and condos.

As compared to February 2007 foreclosure petitions (2,232) rose by 27% in February 2008 (2,835), they decreased from January 2008 (3,212) in February 2008 by 11.7%. Foreclosure deeds increased by 145.7% (350) from February 2007 to February 2008 (860). These had increased by 7.5% from January 2008 figures of 800.

Analyzing the petitions further it is noted that 635 were against owners of two to three family units. This amounts to 23% of all the petitions filed. These types of houses comprise 11% of the total number of houses in the region. February 2008 saw 1.8 petitions filed against two or three family houses for every unit of sale of that kind of property in the Massachusetts.

In February foreclosure auctions rose dramatically by 21.1% from what it was the previous year. In February 2007 there were 981 foreclosures while this year, 2008, there are 1,189.
It has been known for sometimes that multifamily houses are the greater targets of foreclosures. The figures clearly show up the disproportion. This is affecting seriously the owners as well as renters.

All the petitions do not finally end up in foreclosures. Some borrowers manage to sell off their houses, refinance or find some other alternative to halt foreclosures. Scheduled auctions are announced in the newspapers but that does not mean the final countdown. Before the auction takes place many changes do take place.

The lenders are collapsing with the weight of foreclosures – this judicial procedure being time and energy consuming. The abandoned houses are attracting criminals and raising health problems. The houses do not fetch money. Lenders want to dispose of the innumerable units. But with goods out numbering demand it is a buyer’s market and the real estate market is at an all time low. Moreover the credit crunch has caused many mortgage companies to close shop. So buyers have nowhere to turn to for availing of loans for buying houses. Foreclosed houses do not fetch tax or revenue. This has caused the administration at all levels to worry about their pockets. Meanwhile dispossessed evictees are causing endless worry to the vote seekers – the politicians.