Massachusetts foreclosures on the rise

More homeowners in Massachusetts entered the first process of foreclosure in August, a development that could complicate moving activity in the state.

There were 2,713 foreclosure petitions recorded in August, a 13.2 percent year-over-year increase, according to the latest figures from the Warren Group. It was also the highest number of petitions recorded in a single month since July 2009, when 2,899 were recorded.

Foreclosure deeds - the last step in the process - saw an even greater climb. There were 1,207 deeds recorded in August, an 83 percent year-over-year increase over the 659 deeds that were recorded in August 2009. With so many properties reaching the final step of foreclosure, it could be that a number of homeowners will be moving in the immediate future. Home prices are also likely to become even further depressed as more homes enter foreclosure.

"Foreclosure deeds are on track to outpace the record numbers in 2008, when there were 12,430 completed foreclosures," said CEO Thomas Warren. "Job creation and employment numbers will have to improve before we see more recovery in these foreclosure reports."

Elevated foreclosures can complicate home sales for families that are planning on moving, though prices in the state remain better than most. The average relocating family in Massachusetts sold their home for $294,700 in September, a 1.2 percent year-over-year increase, reported Zillow.com.
 

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