Completed Foreclosures In MA Drop To Lowest Level Since Early 2007
A group tracking the real estate market is reporting the number of completed foreclosures in Massachusetts continues to drop to levels not seen in more than five years. According to the Warren Group, the number of foreclosure deeds - the final step in the process - dropped for the fifth straight month in October to its lowest level since February, 2007. Tim Warren, the Group's CEO, says he believes a combination of loan modification programs and short sales is key to the drop in completed foreclosures.
“I don't think we're out of the woods because I think a lot of people are still behind on their mortgages and don't have a lot of alternatives. However I do think that some of the new legislation and some of the government programs are really helping to bring the numbers down. People who are underwater on their mortgages now have a better chance of refinancing their mortgages so that they don't pay so much. And that gives them incentive to stay in the home and to keep paying it.”
The number of petitions - the first step in the foreclosure process - initiated in October, increased 22% over the same month last year. But Warren says that has more to do with the abnormally low number of petitions filed last year. And that the total number of petitions this year is on track to be the second lowest since 2005.