Foreclosures Up By 171% in Massachusetts

August 6th, 2007

Foreclosure is like a deep, dark well for some homeowners. It becomes very difficult for them to rise from it once they fall prey to the legal proceedings associated with it. Unfavorable situations like loss of job, death, medical reasons, divorce, theft or fire in the house etc. - all these leave few options in the hands of the homeowner.

From January 2007 to June 2007, in Massachusetts, the number of auction announcements for foreclosure properties has increased up to 171 percent in contrast to that in 2006. An organization keeping track on all these activities in Real estate industry believes that the number will go up even more.

There have been 1398 auction announcements in the first mid half of 2007 in Worcester County. This amounts to 174 % increase in the foreclosure auctions in Worcester County during the first half yearly of 2007. During the same period last year the number was 510. Specifically in June the figure was much higher. It increased by upto 69% this year compared to same period last year.

Experts believe that the main reason behind the increase in the announcements and petitions to foreclosure is the continuous change in the interest rates. Homeowners find it very difficult to deal with these changing rates.

Rapid increase in the petition filings and auction announcements has not left any option with the homeowners but to sell off their homes. Earlier this trend had not caught much pace and therefore homeowners were provided with time to try out the alternatives like refinance or selling.

Foreclosure proceedings can take place under the supervisions of court and also under the sale deed. The former is called as Judicial foreclosure and the later is Nonjudicial. Housing and urban development department (HUD) is an agency that helps the homeowner in finding smart financial counselor - who gives them true picture of their income ,tells them about their budget and also how much they can invest in buying the house . It is the responsibility of HUD to see that the homeowners are well informed about the pros and cons of the home buying deal.

Real estate owned homes popularly known as REO are called such as they are properties whose auction announcement has been made, but due to lack of bidders or because of inadequate bidding, it turns out to be a bank owned home.

For foreclosures investment, REO is very safe and accepted investment. Real estate brokers appointed by the bank play an active role in selling off REO’s.