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Pre Foreclosed Homes and Foreclosure Rates Rise in Rural Areas

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By : John Cutts    99 or more times read
A report issued by the Massachusetts Housing Partnership showed that the number of foreclosure and pre foreclosed homes in various rural areas of the state has started to rise, demonstrating the fact that the housing industry crisis has already encroached on rural regions that were previously immune from the foreclosure crisis.

In the report, Brockton distressed properties recorded the highest percentage, with 34.7 households under foreclosure for every one thousand homes. Brockton is followed by Winchendon, with a ratio of 32.6 per one thousand households, while Ashburnham came in third with 30.6 households in distress or under foreclosure for every thousand property units.

Several other North Central areas in the state are suffering from high rates of Massachusetts distressed properties, including Athol which has a 30.4 per thousand ratio and Templeton which recorded a 28.9 ratio for every one thousand households. Fitchburg also has a high foreclosure rate at 28.8 per one thousand properties and Gardner is at 24.8.

According to the authors of the study, the rise in the number of foreclosed properties and pre foreclosed homes in these areas are due to high unemployment rates and the recession and was not caused by subprime mortgage failings as are common in inner urban and city areas. The report also reveals that unemployment is much worse in the North Central part of the state compared with its metro areas.

Along with increasing number of foreclosures, including fixer uppers homes, the region is also dealing with continuous rise in unemployment rate. In September 2010, the rate of unemployment in the whole state of Massachusetts was pegged at 9%. This is actually lower than the unemployment level of North Central which was 11.4% during the same month.

Meanwhile, in the rural area of Ashburnham, September 2010 unemployment rate was at 10% which was higher than the 9.2% recorded in September 2009. In terms of foreclosure rates, Ashburnham has also recorded some of the highest percentage jump in the whole state, with the area starting at 17 in 2008 and rising to 28 in 2010.

Although statewide figures for foreclosures and pre foreclosed homes declined in October, the figures continue to rise in some rural regions of the state, particularly in Brockton, Ashburnham and Winchendon.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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