House and Condominiums Foreclosures for Sale Rise in Suburbs

by on Foreclosures

House and condominiums foreclosures for sale are rising in rural and suburban neighborhoods in Massachusetts. According to a study from the Massachusetts Housing Partnership, foreclosures are happening more often in these areas than in cities and metro regions, with the shift occurring over the last nine months.

Foreclosure homes in Boston and in other metro areas of the state started in 2007 and were primarily caused by high interest loans, declining values of properties and high risk borrowing. Foreclosures outside cities, on the other hand, are primarily due to unemployment and the economic slowdown, the study has asserted.

The study also reported that majority of Massachusetts foreclosures for sale can be found in the outlying communities of the state. Rural areas like Athol, Ashburnham and Winchendon account for some of the highest foreclosure concentrations in the region, authors of the study further reported.

As of October 1, 2010, Boston and over 20 gateway communities that include Springfield and Worcester account for around 49% of housing and condominiums foreclosures for sale and properties either already repossessed by lenders or are under some form of foreclosure. The figure is lower than the 54% recorded in these areas last year.

The study also find bank homes for sale declining in cities that traditionally have high foreclosure statistics, like Springfield, Chelsea and Lawrence. Current figures showed that Brockton still leads the state in terms of foreclosed and distressed property concentrations at 34.7 households per one thousand being under some form of foreclosure.

Statewide statistics showed that foreclosures are still increasing in Massachusetts, with 13.7 home units for every 1,000 being under foreclosure during October 2010 as compared with 12.9 homes per 1,000 properties during October 2009. Local economists have stated that the only way foreclosure rates can be controlled in rural and suburban regions is to add more jobs and improve the economic condition of the region.

They also added that the number of house and condominiums foreclosures for sale and distressed property rates have declined in cities because borrowers who have subprime loans have already lost or saved their properties. They added that foreclosures are now occurring among homeowners who have prime mortgage loans.