Bay State Foreclosure Deeds Jump In October, But Petitions Drop By 50 Percent

The number of foreclosure deeds recorded in Massachusetts spiked in October, but lenders filed fewer petitions to foreclose - the first step in the process, according to Boston-based ""The Warren Group"":http://www.thewarrengroup.com, publisher of Banker & Tradesman.
The number of foreclosure deeds recorded in October jumped 24.3 percent to 993 from 799 in September, the company reported. October foreclosure deeds were also 34.4 percent higher than the 739 deeds recorded in October 2007. Foreclosure activity has eased compared to the spring and summer when the number of deeds recorded each month exceeded 1,000, The Warren Group said. Still, year-to-date foreclosure deeds have surged 67.5 percent to 10,603, compared to 6,332 during the first 10 months of last year.
""A lot of efforts have been made on the local, state, and federal levels to help homeowners who are falling behind on mortgage payments avoid foreclosure,"" said Timothy Warren Jr., CEO of The Warren Group. ""The good news is that the number of foreclosure deeds appears to have moderated from the peak activity in the spring and summer, and lenders have filed fewer petitions to foreclose so far this year. Prodded by community and government leaders, lenders are working more diligently to pursue loan modifications.""
Lenders initiated fewer foreclosures in October, according to The Warren Group's market data. The number of foreclosure petitions filed by lenders fell 33.3 percent to 1,507 in October, from 2,258 in September. Foreclosure petitions were also down 50.8 percent from a year earlier when 3,065 petitions were filed. A total of 18,286 petitions to foreclose have been filed during the first 10 months of the year, The Warren Group said, down 24.2 percent from 24,127 during the same months in 2007.
Urban areas in the state continue to be most affected by the foreclosure crisis, the company said. Worcester (76), Springfield (50), Boston’s Dorchester neighborhood (41), Brockton (37) and Lawrence (36) had the most foreclosure deeds in the month of October.
There were 1,588 auction announcements recorded in October, a 30.3 percent increase from 1,219 in October 2007. Year-to-date auction announcements spiked 34.1 percent to 16,870. from 12,578 last year, The Warren Group said.