This past March has been looking better for major lenders, as they increase the intolerance for delinquent mortgage loans. The whole country is experiencing a rise in foreclosures, as the number of petitions to foreclose grew by 55 percent in Massachusetts alone. The amount of foreclosure deeds (completed foreclosures) followed a similar trend by an increase of 36.5 percent, according to a report by The Warren Group.
“Banks are stepping up foreclosures all over the country and Massachusetts is no exception,” Warren Group CEO Timothy Warren said in a statement. “Since the suit by state attorneys general over foreclosure abuses has been settled, a cloud has lifted and we may see numbers continue to rise.”
At the start of 2011, the amount of foreclosures followed the opposite trend because there was speculation as to whether or not the lenders’ home seizure practices morally sound. It might come as a surprise to some because we have great biotech firms, the most higher educational institutions, great health organizations, and we typically do very well with real estate because of the high influx of people moving in and out on a regular basis. Also because we have so many higher education institutions, this allows for an increased international population, which opens up the door to a whole new market.
Though the amount of well educated and affluent residents is pretty impressive, it doesn’t necessarily mean that these people are as as formidable with their cash flow management. This means that Massachusetts residents are certainly not exempt from these foreclosures as wishful thinking might lead us to believe.
Looking on the bright side however, The Warren Group would like to remind us that even though there is an increase in the amount of foreclosures, the activity is still below the peak levels from the years 2007-2010.