Friday, November 11, 2005

Massachusetts Defaults Continue Rising

The Norton Mirror reports that more foreclosures are coming in Massachusetts. "Don't look now, but that whistling sound you're hearing is the air leaking out of the housing bubble. Things that are unsustainable, by definition, don't last forever. Recently brokers have seen a distinct slowdown in the market for high-end homes. Those 'McMansions' aren't selling as quickly as they used to."

"More disturbing yet is a sharp rise in foreclosures. Over the first nine months of this year, foreclosures in Massachusetts are up 33 percent over the same period in 2004."

"'We are seeing a big increase, we've seen a steady increase, and there's going to be more going forward,' Jeremy Shapiro. Behind the figures lie several factors. Zero-interest mortgages allowed buyers to borrow more than they could afford. Interest rates are going up, pushing up payments for those holding adjustable-rate mortgages. Families mortgaged to the hilt can't handle it when one earner loses a job or some unexpected expense comes up."


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