FOR IMMEDIATE RELEASE
Editorial Contact:
Katie Curnutte
The Warren Group
(617) 896-5370
In Mass., One Foreclosure Begins for
Every 1.6 Sales Completed in Feb.;
Multifamily Homes Disproportionately Affected,
According to The Warren Group
Foreclosure Deeds in February Soar for Every Property Type
BOSTON, March 31, 2008 – Petitions to foreclose filed in February outpaced sales for some property types in Massachusetts, with two- and three-family homes taking a harder hit than one-family homes and condominiums, according to The Warren Group, publisher of Banker & Tradesman.
“We’ve known for some time that multifamily homes are being disproportionately affected by the Bay State’s foreclosure crisis, but these numbers are dramatic and show how much this problem is affecting both owners and renters,” said Timothy Warren Jr., CEO of The Warren Group.
Petitions to foreclose for all property types rose 27 percent from 2,232 in February 2007 to 2,835 in February 2008. They fell 11.7 percent from the 3,212 filed in January 2008. Foreclosure deeds in February rose 145.7 percent from 350 last year to 860 in February 2008. They were up 7.5 percent from the 800 recorded in January 2008.
Of those petitions, 635 were filed against owners of two- and three-family homes. That represents 23 percent of the petitions filed against all properties, although two- and three-family homes are 11 percent of the state’s total housing stock. In February 2008, there were also 1.8 petitions to foreclose filed against two- and three-family homes for every single sale of that property type in the state.
For all residential property types – one-, two- and three-family homes and condominiums – there was one petition filed in February for every 1.5 sales recorded that month.
Petitions to foreclose do not always end in actual foreclosure. Some homeowners eventually sell their homes, refinance or otherwise find a way to halt the foreclosure. Announcements are placed in newspapers to advertise a scheduled auction, but are not a final count of actual foreclosure auctions. Some homeowners sell their homes before the auction happens.
“We’re not sure why multifamily homes are being more affected by foreclosure than one-family homes and condos,” Warren said. “Perhaps it is because some multi-families are owned by investors who don’t live in the properties themselves, so they’re quicker to walk away when the going gets tough. Or maybe it’s that many owners of small multi-families are very dependent on rents, and are more likely to default if they can’t fill their apartment every month.
“This issue is certainly affecting owners of all types of properties, but looking at the numbers of multi-families in distress, it’s obvious the human impact of foreclosures extends beyond homeowners.”
Foreclosure auction announcements also rose substantially in February, with 21.1 percent more announced than during the same time period last year. There were 981 in February 2007, and 1,189 in February 2008.
Massachusetts Petitions to Foreclose
February 2008
Data for every city and town in the state is available 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.