FOR IMMEDIATE RELEASE

Editorial Contacts:

Aglaia Pikounis                                                

The Warren Group

(617) 896-5370

apikounis@thewarrengroup.com

Mass. Foreclosure Deeds Surge in First Half of 2008;

Petitions Ease in June Because of Right-To-Cure Law

State Law Gives Borrowers 90 Days to Remedy Defaults

BOSTON, July 31, 2008 – Foreclosures more than doubled in Massachusetts during the first half of 2008 compared to the same period last year, according to a new report by The Warren Group, publisher of Banker & Tradesman.

A total of 6,707 foreclosure deeds were recorded during the first six months of 2008, up 117.6 percent from 3,083 a year earlier. Foreclosure deeds are the final step in the foreclosure process.

“The housing market has been battered by foreclosures this year. Suburban areas haven’t felt the sting as much as homeowners in cities like Brockton, Dorchester, Lawrence and Lowell, which continue to be the hardest hit by this foreclosure crisis,” said Timothy Warren, CEO of The Warren Group.  

Foreclosure deeds in June rose 50 percent to 1,131 from 756 in June 2007.

While foreclosures have increased year-over-year, the number of foreclosures in June were 19.5 percent lower than May 2008 when 1,405 deeds were recorded.

Meanwhile, petitions to foreclose -- the first step in the process – fell sharply during the month of June.  Lenders filed 350 petitions to foreclose in June, an 84.8 percent decline from 2,308 a year ago, and 10.3 percent lower than May when 390 were filed. Year-to-date petitions increased a slight 1.4 percent to 13,076 from 12,899 in 2007.

A law that took effect at the beginning of May is postponing foreclosure petitions. Known as the right-to-cure law, the legislation requires lenders intending to foreclose to give delinquent borrowers 90 days to pay off loan defaults.

“Despite the temporary drop-off in foreclosure petitions over the last two months, overall foreclosure activity is consistently climbing.  Thousands of homeowners are still at risk of losing their homes this year,” Warren said.

Auction notices in June jumped 17 percent from 1,358 in June 2007 to 1,589. Year-to-date auction notices shot up 38.8 percent from 7,570 to 10,504.

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.