Essex County Foreclosures Galloping Past The National Average

In May 2008, registered Essex County foreclosures went galloping past the national average of 107% by a good 26%.The Warren Group of Boston, which publishes data-based information on real estate, said that the Essex County foreclosures increased by 133% over and above that of May 2007.

City wise foreclosures in Essex County also project the same gloomy statistics for May 2008 compared to May 2007.The County’s largest city Lynn suffered 45 home foreclosures this May from only 21 of last year. Haverhill foreclosures increased from 13 to 21, Peabody from 1 to 8 and Salem listings spiked from 3 foreclosures to 8 as compared to May of the previous year

Foreclosure figures in the cities of Suffolk and Middlesex continued their forward march. The number of foreclosed homes in Chelsea shot up to 10 in May 2008 while last year during the same month it was 4 only. The city of Revere dangling at 28 this May compared to 11 foreclosures of May last year and Everett jumping to12 home foreclosures from 5 during same time a year ago. This does not indicate any sign of respite from the nationwide crisis. However Malden is in a better position with filing foreclosures for only fifteen homes in May 2008.It was eleven in May 2007.

Timothy Warren presents a dismal picture for the future due to reo foreclosures and the jittering real estate market in the country. Warren is the chief executive officer of the Warren Group and his opinion is authenticated by database information. He feels that the incredible high rates of foreclosures throughout the country are a reflection of the total downward swerve of the real estate market. The demand for REO homes has fallen, simultaneously sales have been few and the prices have dropped sharply which is a very ominous situation for borrowers facing foreclosures, he commented. Moreover the trend is going to continue till the end of the year.

The first step in the long process of foreclosure is filing of foreclosure petitions which reflect the number of households that are facing the axe. A new law that has come into effect from May 2008 states that lenders have to wait for a period of 90 days before they can initiate any foreclosure procedure against the defaulter. Previously a lender could begin the process of foreclosure right after 30 days from the day the borrower had been in default. Immediately afterwards, foreclosure filings listed country wide fell drastically. Warren believes the trend to be short lived.