A foreclosure may occur as a result of financial challenges, such as unexpected medical bills, divorce or the loss of a job. Real estate purchases that are made during a boom in the housing market may well result in foreclosures during a recession. It is unsurprising, therefore, that a recent increase in new foreclosures seems to have occurred throughout Massachusetts.
The Warren Group, a provider of real estate information, released figures recently relating to foreclosures in Massachusetts. The rate of new foreclosures increased by almost 36 percent in 2012 compared to the previous year, although the overall rate of completed foreclosures decreased by 13 percent.
Foreclosure petitions in Worcester County increased by about 33 percent during 2012, which closely mirrors the overall increase in Massachusetts.
The number of foreclosure petitions increased by 5 percent in Worcester County but dropped by 17 percent for Massachusetts for December 2012 when compared to the same month one year earlier. The number of foreclosure deeds dropped by more than 60 percent in December 2012 for both Worcester County and Massachusetts compared to the number in December 2011. Analysts for the Warren Group have stated that they expect the housing market to recover during 2013.
Homeowners who are unable to make their mortgage payments may have options to keep their homes, especially in states like Massachusetts that have consumer protections. Additional options in these cases include loan modifications or declaring bankruptcy.
Source: Telegram.com, “Mass. foreclosures increased in 2012,” Priyanka Dayal McCluskey, Jan. 28, 2013