For the first time since the collapse of the real estate market eight years ago, Massachusetts foreclosure starts fell below 250.
According to the Warren Group, a total of 248 foreclosure petitions were filed statewide in May compared to 1,779 starts a year ago, an 86% decrease. In April, 370 foreclosure starts occurred.
Through May, 2,698 petitions to foreclose have been filed in Massachusetts, a 66% drop-off from the same five-month period last year.
The Warren Group’s May figure is the lowest recorded since the Boston-based firm started compiling foreclosure data in 2006. Previously, the low was 350 in June 2008.
“This month’s data further supports our argument that the foreclosure crisis is behind us. The combination of a recovering housing market and banks’ willingness to allow for loan modifications has helped suppress foreclosure levels,” said Timothy M. Warren Jr., CEO of The Warren Group.
Meanwhile, foreclosure deeds—or completed foreclosure—were down 68% on a yearly basis to 251 in May 2013. A total of 1,246 foreclosure deeds have been recorded in the first five months of the year, a 69% decrease from last year.
Also, the number of advertised auction notices also fell in May as there were 447 announcements. This is down 69% from 1,446 a year ago.
“Legislation passed last year that forced lenders to consider alternatives to foreclosure is also contributing to the decrease as lenders revamp their foreclosure procedures to comply,” Warren added.
