Foreclosed Homes in Boston and the Whole State Flood Market

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The number of foreclosures continues to rise in several areas of Massachusetts. Foreclosed homes in Boston and in other counties and cities of the state recorded higher totals for the month of August 2010 when compared with the previous year and with the preceding month. Halfway through September, foreclosure filings are already reportedly on course to beat August numbers.

So far, the whole state has recorded a total of 9,887 foreclosures for the year, including all types such as properties under Chase foreclosure listings. The total, which covers the January-August 2010 period, is already higher than foreclosure totals for the whole 2009 period, according to Warren Group.

For August, foreclosed homes in Massachusetts announced for auction rose to 1,927. This represents a 37% increase compared with August of last year. When compared with July 2010, the increase is almost 8%.

This increase in the state's foreclosure totals is parallel to what is happening to the whole country, with nationwide bank foreclosure houses rising by 3% in August when compared with July. Banks and lenders repossessed a total of 95,364 homes all around the U.S. in August 2010, producing a 25% increase compared with August 2009.

It is not only foreclosed homes in Boston that have recorded increases for August; other areas, even those that are not known for their foreclosure problems like Newburyport and Amesbury, have posted significant jumps in total foreclosures for the year. For the period January-August 2010, Amesbury had a total of 36 foreclosure deeds.

This is not exactly a huge total compared with some of the areas of the state, except that total foreclosure deeds for the same period in 2009 was only 14, which means that the increase is 157%. In Newburyport, total foreclosure deeds for the first eight months of the current year is at 14, a 180% jump compared with the same 2009 period when only five foreclosures were recorded.

According to real estate market analysts, the reason behind the increased number of foreclosures at this time is not subprime mortgages anymore. Prior to 2010, majority of foreclosed homes in Boston and in most metro areas of the U.S. are caused by subprimes; however, current foreclosure problems have more to do with underwater loans and unemployment, analysts have stated.