The Foreclosure Report

'Nobody Showed Up'

The Boston Globe has this report on the fall-out from the housing bubble. "Foreclosure filings last year in Massachusetts were up 34 percent through November, compared to the prior year. Experts say the trend is a fallout from the housing boom of the past decade, in which people took out high-risk mortgages, such as interest-only and no-down-payment loans, in order to get into expensive homes."

"'You could lose a job, go through a divorce, a medical emergency in the family, or the market could dip,' said Jeremy Shapiro. The total number of foreclosure filings through November was nearly 10,500, Shapiro said. Essex County had a 49 percent increase over the same period in 2004. Suffolk, Plymouth, Bristol, and Barnstable counties all had increases of more than 42 percent."

"Lenders in recent years have become more willing to give loans without down payments, and to borrowers with damaged credit. 'People are getting loans based not on their ability to pay,' said Virginia Pratt, a financial adviser who works for a Boston nonprofit. 'Lenders and brokers are making money. There are a lot of fees built into the loan.'"

"Mary Nunziato peeked out the window to see who arrived to take her house away from her family. The auctioneer placed folders full of papers on the hood of his car and waited for bidders. 'I was nervous. I was upset,' said Nunziato, who quit her job as a school custodian more than a year ago after being diagnosed with leukemia and diabetes."

"Turns out the auctioneer wouldn't need to shout over the dogs barking inside or the planes overhead approaching Logan Airport. 'Nobody showed up,' Nunziato said."

"That was last month. Another auction is scheduled Jan. 31. The Nunziatos say they owe about $30,000 in back payments and late fees after they stopped making their $2,170 monthly payment in June."

"Despite her predicament, Nunziato said she's hoping to get another home loan to buy a cheaper house in Fitchburg. She said she's been given a preliminary OK for a loan at 8 percent, a subprime rate."

posted by Ben Jones @ 1:16 PM