The Foreclosure Report

Mass Defaults: 'Starting To Look Like A Trend'

Some new reports have more detail on the Massachusetts situation. "Mortgage foreclosures continue to climb in Bristol and Plymouth counties, outpacing a burgeoning state rate. 'It is starting to look like a trend,' said Dr. Clyde W. Barrow at UMass Dartmouth."

"Refinanced mortgages account for the bulk of the mortgages that are foreclosed, said Jeremy Shapiro, president of ForeclosuresMass. 'The current factor is more of the people who are pulling the equity out of their houses are spending over their heads and now unable to pay their mortgage,' Mr. Shapiro said."

"However, homeowners who gambled and tried adjustable rate mortgages or other specialty mortgages..on their homes will comprise most of the next wave of foreclosures projected in the coming months as the once low rates climb beyond their ability to pay them, he said."

"Bay State homeowners are beginning to feel a hangover from the long-running real estate party, with foreclosures doubling in Boston and parts of the North Shore. 'It's through the roof at this point,' 'said Shapiro (who) yesterday reported that foreclosure filings rose 95 percent in Suffolk County, which includes Boston, and 107 percent in Essex County in August. Statewide, default filings rose 66 percent from August 2004."

" Want to avoid foreclosure? Shapiro recommends that all homeowners build up enough emergency savings to last several months. 'One question I always ask folks is: `How many paychecks away from foreclosure are you?' he said."

posted by Ben Jones @ 3:23 PM