Mass Foreclosures

If you haven't been paying attention to the news as of late, then you been missing out on the latest housing numbers regarding the number of foreclosures in the Commonwealth.

The numbers were recently reported by the Warren Group, a publisher of real estate data and news. In Massachusetts in 2007, the number of homes foreclosed upon was 7,563 which is three times higher than reported in 2006 and nine times higher than reported in 2005.

Many realtors and others are predicting that 2008 will be even worse, due to the number of foreclosed homes that mortgage companies are sitting on and will sell at heavily discounted prices later on this year.

What does this mean for you, someone looking to purchase a home?

The answer is rather simple, if you wait until May or June of this year, you'll be able to purchase a foreclosed property at a significantly reduced price. The caveat will be whether you have good credit, equating to a FICO score of 680 or better, to qualify for traditional financing and the ability to put at least 3-percent or more down as a down payment.

For the person that owns a home and has an adjustable rate mortgage (ARM) it's better for you to contact the bank and inquire about refinancing to a 30-year fixed rate mortgage. Don't procrastinate and put off calling the bank if you've missed a few payments or have been late in making a payment. The key to know with banks is they want to work with you, the homeowner, and would rather hear from you regarding what has changed in with your finances versus you avoiding their calls and letters.

For information regarding avoiding foreclosure, contact the regional Office of Housing and Urban Development at 617-994-8200 or visit their office located at:

Boston Regional Office
Thomas P. O'Neill, Jr. Federal Building
10 Causeway Street, 3rd Floor
Boston, MA 02222-1092

Home ownership is very important and I believe that no person should allow their ego to get in the way of doing the right thing and contacting their bank.



Related article:
Boston Globe