Foreclosure activity showed signs of subsiding in June, when petitions to foreclose dropped below 1,300 for the first time this year, according to the latest report from The Warren Group, publisher of Banker & Tradesman.
Foreclosure petitions, which mark the first step in the foreclosure process in Massachusetts, fell to the lowest level so far this year. A total of 1,254 petitions were recorded in June – a 29.5 percent decrease from May. Year-over-year foreclosure petitions, however, rose almost 27 percent in June, from 990 in June 2011. From January through June, 9,131 petitions to foreclose have been filed statewide, up 68.6 percent from 5,415 during the same period in 2011.
“It’s pretty significant to see foreclosure petitions drop by almost 30 percent from just a month ago,” said Timothy M. Warren Jr., CEO of The Warren Group. “I believe that an improving economy, more jobs and an active real estate market are having an impact and giving us a moderating trend in foreclosures.”
Foreclosure deeds, which represent completed foreclosures, decreased almost 24 percent to 715 in June, down from 936 deeds in June 2011. This is the first time since September 2011 that deeds posted a year-over-year decrease. A total of 4,450 foreclosure deeds have been recorded in the first six months of the year, up almost 18 percent from 3,782 a year earlier.
“Foreclosure numbers are beginning to become clearer. After such a slow year for foreclosures in 2011 that left many distressed properties in limbo, we are starting to see banks work their way through the backlog,” Warren added.
Second quarter foreclosure activity also increased statewide. In the second quarter, foreclosure petitions rose 66 percent to 4,783, up from 2,880 during the second quarter 2011. Completed foreclosures in the second quarter also increased 4 percent to 2,190, rising 2,105 during the same period last year.
The number of advertised auction notices dropped during the month of June. There were 1,109 auction announcements in June, a near 50 percent drop from 2,205 a year ago. Year-to-date auction notices decreased 7 percent to 8,132 from 8,788 last year.