Home Foreclosures for Sale Invade Suburban Massachusetts

by on States

Industry experts have been seeing home foreclosures for sale spread from Massachusetts’ urban areas of Dorchester and Lowell to the suburban of Hinghams, Westons and Sudbury. They said that foreclosures have invaded places where in the past were spared from them.

The reason for the increase in foreclosure auctions is the recession. Nowadays, many homeowners are losing or have lost their jobs, forcing them to miss payments on their mortgages.

Industry experts said that historically, when people lost their jobs, it follows that they would soon lose their homes if they have not found another employment. They said unemployment is the main culprit behind the current flood of home foreclosures for sale. So far, the number of repossession proceedings in the state has increased by almost 150 percent.

And many homeowners who are at risk of foreclosures do not want to talk about losing their jobs, running out of money or defaulting on their mortgage payments. This is one reason why foreclosure filings are increasing because distressed homeowners would decide to seek help at the last minute, when it is already too late to save their homes from foreclosures.

Industry experts said that the current housing market in Sudbury is a typical example of what the coming flood of foreclosures could do to an area. For example, a 1,770-square-foot single-family colonial home that was built in 1995 was purchased in November 2003 for $410,000. It was foreclosed last October 1 with an assessed value of $420,800. The opening bid price for the property was $365,000.

Experts said that only seven houses above the 1 million mark have been sold in Sudbury this year, compared with 43 in 2008. The listed prices showed that property prices are holding up. However, industry experts do not expect it to last long as another flood of foreclosures is working its way to the market.

Industry analysts said that foreclosure properties tend to pull down housing prices and values, resulting to homeowners owning properties that have less value compared with their mortgage. But analysts said that Massachusetts is still better off than other states as the number of home foreclosures for sale is not that high.

They pointed out that the state’s population is still growing, with people needing affordable places to live. Massachusetts residents need to do some more belt tightening because it is still a long way to recovery, according to analysts.

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