A vastly improved Bay State real estate market helped foreclosures decline by nearly a third through February compared with 2012, and the downward trend is expected to continue through year’s end.
“The trend with falling foreclosure numbers is so strong that it would take another deep recession to knock it off course,” said Timothy M. Warren Jr., CEO of industry tracker The Warren Group.
Foreclosure deeds filed in February dropped nearly 69 percent to 240 from the same period last year, while combined filings for January and February dropped 66 percent, according to data released yesterday by The Warren Group.
People are out shopping for new homes, said Warren, noting anecdotes about multiple offers for homes, bids above asking prices and “almost a feeding frenzy kind of situation.” Sales volume and median prices have increased, and what everyone wants is more inventory, he said.
“For some reason, homeowners haven’t caught up that this is a good time to sell their houses,” Warren added.
That also means it’s easier for people who still have trouble paying mortgages to avoid losing their homes, he said. “Eager buyers find their way to distressed properties. When somebody is facing foreclosure, they may … put their house on the market to see if they can get an offer that comes close to the outstanding balance on the mortgage. If they’re getting bids above the asking price, that keeps the homeowner from going all the way through the foreclosure process.”
The improved economy, a better jobs picture and higher incomes also make it easier for homeowners to catch up on delinquent mortgage payments, said Warren. As is state legislation that took effect last fall, requiring lenders to consider alternatives to foreclosure.
“This means that short sales, loan modifications and even principal reductions are now easier to do,” Warren said.
