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Massachusetts Foreclosed Homes List Up in July

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By : John Cutts    99 or more times read
Foreclosure activity in Massachusetts rose by 9 percent in July compared with previous month. But market data showed that July's foreclosure rate declined by 38 percent compared with the same month a year ago.

Industry experts noted that the number of filings for foreclosed homes list last month rose from the same month the previous year, approaching historic high.

Experts said that the worsening recession and the growing number of jobless people have resulted to more homeowners struggling to meet their monthly mortgage payments. Also, many homeowners are having difficulty meeting payments on their adjustable-rate mortgages that are scheduled to reset for higher rates.

According to market data, lenders initiated 2,822 repossession proceedings in the state last month. The figures are five times greater than the number of filings for the same month a year earlier and nearly the same with June. In July last year, filings were made on 502 distressed properties. Similarly, June filings were posted on 2,835 properties.

The total number of foreclosure filings at the Massachusetts Land Court reached 16,635 as of July this year, representing a 22.5 percent gain from the 13,578 reported for the same period the previous year.

According to industry analysts, filings, which are the initial foreclosure stage, do not usually result to foreclosures. From the start of the filing up to the actual foreclosure sale, distressed homeowners have the chance to seek ways to avoid foreclosures.

However, the number of Massachusetts filings indicated that an alarming number of homeowners and houses are at risk of foreclosures. They pointed out that rates of foreclosure filings grew considerably in 2009 following a brief respite in the middle of 2008 when Massachusetts initiated a law that provides distressed borrowers a 3-month grace period from the time of filing to actual foreclosure sale.

Within this grace period, homeowners have the chance to update their accounts by paying their arrears and making them current. Analysts said that the dramatic rise in foreclosure filings in the state last month indicated that homeowners are still facing difficulties in making their mortgage payments despite federal and state foreclosure prevention efforts.

Data showed that completed foreclosures in Massachusetts totaled 679 last month, an increase of 38.2 percent from the 1,099 posted in July last year and 8.8 percent higher from the 624 reported in June this year.

For the first seven months this year, there were 5,419 foreclosure properties in the state, a 30.6 percent decline from the 7,806 total for the same period the previous year.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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