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Bank and FHA Foreclosed Homes Expected to Record Lower Totals in 4Q

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By : John Cutts    99 or more times read
The coming 2010 fourth quarter is expected to be a time when foreclosure totals, which include bank, government and FHA foreclosed homes, will be lower than previous periods. In Massachusetts, this prediction will likely hold true, primarily because foreclosure starts in September have slowed compared with the previous month.

According to Warren Group, the number of foreclosure petitions, or the first phase in the process of foreclosing on a property, has declined in September when compared with August. This led to some housing market observers to predict that Springfield foreclosed homes, MA and distressed properties in other areas of Massachusetts will record a smaller total in the 2010 fourth quarter.

Petitions for foreclosure homes in Massachusetts for September totaled 2,358, representing a 23% decline compared with August 2010 and a 6.7% drop compared with September 2009. Warren Group has revealed that August petition totals were the highest in the state since July 2009.

Although the number of government foreclosures and FHA foreclosed homes is projected to maintain its level until the end of the current year, the decline in bank foreclosure starts will definitely make a difference in terms of foreclosure totals for all types. Market analysts have also stated that lenders' moratorium on foreclosure sales will reflect on fourth quarter foreclosure activities.

Meanwhile, housing market observers have stated that people buying foreclosed houses will be able to continue transacting in Massachusetts before the year ends. Although Bank of America has not yet lifted the moratorium in the region, the lender has already done so in various areas of the U.S. and non-judicial states like Massachusetts are expected to be next.

According to state housing statistics, Bank of America has at least 2,000 pending foreclosure cases in the state and the processing of these cases will resume, most likely, by November. They stated that the market has to wait for October housing reports to see if the moratorium imposed by Bank of America has made any significant impact on the foreclosure figures of the state.

Non-bank foreclosure types, like FHA foreclosed homes, will not be affected by the lower number of bank foreclosure starts in September, but the overall foreclosure total of the state will definitely reflect the drop, analysts have claimed.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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