Massachusetts Foreclosures Rate Doubles
During the first quarter of the current year, the situation looked grim for the state of Massachusetts as it recorded record-breaking foreclosures rate. Even when local officials braced themselves for worsening conditions, the foreclosures data that came out last May was still gut-wrenching. Compared to its’ performance in April, Massachusetts foreclosures rate has actually doubled. The state now has the 11th highest foreclosures rate from its previous 18th position. Is there any end in sight?
The most recent figures showed the state with one foreclosure filing for every 607 homes. When interpreted, this means that more and more families are trapped in homes with mortgages they could never pay off. Even more bad news is the soft housing market which is driving home prices down. Owners with some equity a couple of years ago, now find themselves with mortgage debts that are larger than what their homes cost in the market. In the end, they eventually lose their homes to foreclosure.
With so many Massachusetts foreclosure homes in the market and more filings are expected as resetting interest rates on ARMs takes it toll, local officials are hoping that buyers and real estate investors would be attracted to the low prices offered for these homes. In the past, many seasoned investors have recognized the investment potentials of these foreclosure homes and have purchased several properties from brokers like Foreclosures Listings Nationwide.
Sellers, on the other hand, are already considering offering more discounts and other forms of incentive including shouldering closing costs. If they do not do these things, they would incur high holding costs for each of the Massachusetts foreclosure homes they have in their possession. In addition, they would never recover even a small portion of the original mortgage debt and the money they shelled out for the foreclosure proceedings.
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