FOR IMMEDIATE RELEASE

Editorial Contact:

Aglaia Pikounis                                                

The Warren Group

(617) 896-5370

apikounis@thewarrengroup.com

Mass. Foreclosures Climb in July from Prior Month,

But Drop from Last Year’s Level

Start of Foreclosure Proceedings Remains Steady Month-to-Month

BOSTON, Aug. 19, 2009 – Foreclosures in Massachusetts increased almost 9 percent in July from the prior month but dropped 38 percent from the same month last year, according to a new report from The Warren Group, publisher of Banker & Tradesman. At the same time, the number of foreclosures initiated by lenders rose from the prior year and has approached historic highs.

Lenders started 2,822 foreclosure proceedings in Massachusetts in July, more than five times more than the same month last year and about the same as in June. There were 502 petitions to foreclose filed in July 2008, while 2,835 were filed in June. Petitions to foreclose are the initial stage of foreclosure. A total of 16,635 petitions to foreclose were filed in Massachusetts Land Court through July, up 22.5 percent from 13,578 during the same months last year.

“While petitions to foreclose don’t always result in actual foreclosures, this number indicates that a significant number of homeowners and properties are in distress,” said Timothy M. Warren Jr., CEO of The Warren Group. “Foreclosure petition activity has increased considerably this year after a temporary lull in the middle of last year when the state’s right-to-cure law went into effect. The law gives borrowers 90 days to catch up on missed mortgage payments.  This means that despite intensive efforts to prevent foreclosures, strapped homeowners are still encountering problems paying their mortgages.”

Foreclosure deeds -- which represent completed foreclosures -- declined from last year but climbed from the prior month. There were 679 foreclosure deeds in July, a 38.2 percent drop from 1,099 in July 2008 and an 8.8 percent increase from 624 in June. A total of 5,419 foreclosure deeds were recorded from January through July, which is a 30.6 percent drop from 7,806 during the same period in 2008.

“It takes an average of about a year from when a foreclosure petition is filed to when a property is actually foreclosed on. So part of the reason we’re seeing fewer foreclosures this year is because there was a drop-off in the number of foreclosures initiated by lenders in 2008 because of the right-to-cure law,” Warren said.

The Warren Group tracked more auction notices during the month of July. Auction notices rose 33 percent to 1,940 from 1,459 in July 2008 and were also 25 percent higher than the 1,552 auction notices in the prior month. A total of 9,320 auction announcements have been tracked by The Warren Group so far this year, down 22.6 percent from 12,039 a year ago.

Data for every city and town in the state is available to members of the media by request.

About The Warren Group

The Warren Group, based in Boston, is the publisher of Banker & Tradesman, The Commercial Record and a series of association publications. As the premier provider of real estate data in New England, The Warren Group offers a range of real estate products and services for professionals and consumers searching for real estate and financial information. For more information about The Warren Group, please visit www.thewarrengroup.com or call 617-428-5100.