The concentration of residential and land foreclosures is shifting from big cities to rural areas in Massachusetts, according to housing market analysts. They stated that this shows foreclosures are not caused by subprime mortgages anymore, but are now happening because of the economic downturn and high unemployment rates.
Although foreclosed and bank owned homes in Boston and in other cities of the state remain high, towns and rural areas are reportedly catching up. According to housing experts, in terms of percentage of total property units under foreclosure, rural areas can be said to have a higher foreclosure concentration than big cities in Massachusetts. Analysts have cited the town of Ashburnham as an example.
A few years ago, issues related to Massachusetts bank owned property and foreclosure problems hardly bother residents of Ashburnham; now, the town has some of the highest foreclosure totals in the whole state. According to the nonprofit association Massachusetts Housing Partnership, the area is comprised of 6,000 residents and around 2,000 residential units. Out of these units, 61 are either foreclosed, bank-owned or are scheduled for an auction sale as of October of last year.
Nearby communities like Athol and Winchendon are also suffering from high numbers of residential, ranch and land foreclosures, according to housing market observers. They stated that majority of troubled homeowners in these areas have experienced income declines, mainly because of job losses. Values of properties in these towns have also declined considerably, making them even more difficult to sell, analysts have added.
They also reported that unlike in urban areas where foreclosed and bank owned homes for sale are usually concentrated in one single neighborhood, foreclosed properties in towns are spread out, which makes the problem less obvious at first glance. This also creates huge problems for policymakers since they need to address the problem by considering the community as a whole, instead of just focusing on a particular street.
Industry experts have also stated that the problem of residential and land foreclosures in towns will not be solved by simply rehabilitating properties, but must be addressed by providing jobs to residents. They stated that any limited effort will not make much difference since the problem is more deeply rooted in these rural towns.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
Notice: In accordance with FTC guidelines, we state that RealEstateProArticles.com has financial relationships with some companies and may be compensated if consumers choose to buy, subscribe or take any action to a product or service via the links on our website. Occasionally, we receive free access to review a product or service. We do not accept compensation in exchange for a positive review. These reviews are strictly the opinions of the author.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites