In Massachusetts, distressed homeowners are waiting around for the time when their lenders ask them to vacate their homes. This is expected since most are no longer paying their mortgage dues for several months now and are simply hoping that credit repair services will help them minimize the damage to their credit scores.
The number of Boston foreclosures has soared in the past couple of months. In fact, about 36,000 homeowners have not paid their mortgages for at least 3 months, and 30 percent of them are actually behind by a year or even more, based on a report from the Lender Processing Services Inc.
There are several reasons why the number of Massachusetts foreclosures is rising at an alarming rate. For starters, many borrowers have lost their jobs and have no way of paying their mortgage obligations. Some of them are simply having trouble with the ballooning interest and could no longer afford to pay the loan.
There are still those who are looking to get out of such mess by speaking with their lender and discussing foreclosure alternatives, such as loan modification or short sale. These people are the ones who are also looking at credit repair services in the hope that their delinquency will not greatly affect their credit scores and allow them to enjoy financial credibility.
On the other hand, there is a growing number of borrowers who have decided to give up and stop payments on their homes, but still live in these, waiting for the lender to complete the foreclosure process. They use the time to save the money instead, so they could move to an apartment when the time comes. In addition, they will not be dragging down home prices in their neighborhoods since abandoned properties are considered to be neighborhood blights even if they are looked at by buyers as cheap houses for sale.
The timeframe for lenders to foreclose a property has essentially gotten longer with lenders being required to help these troubled homeowners first. For some experts, the delay is causing a drag on the housing market and the industry needs to determine which borrower will benefit from such help and which are really no longer able to pay for their home. For the latter, they should concentrate on looking for credit repair services so that, in a couple of years, they can become credit-worthy enough to buy a new home.