Hub foreclosures go 'through roof'

Bay State homeowners are beginning to feel a hangover from the long-running real estate party, with foreclosures doubling in Boston and parts of the North Shore.

"It's through the roof at this point," said Jeremy Shapiro, president of ForeclosuresMass.com, which yesterday reported that foreclosure filings rose 95 percent in Suffolk County, which includes Boston, and 107 percent in Essex County in August.

ForeclosuresMass.com tracks year-over-year increases in "notices of default," the first step banks take in seizing homes for mortgage nonpayment.

Generally, banks file these notices when homeowners fall about three months behind on loans.

ForeclosuresMass.com's latest figures show filings rose the most in Western Massachusetts, soaring 275 percent in Franklin County and 212.5 percent in Berkshire County.

This Article is an excerpt from the 16 Page Print Edition!

Are YOU getting the print edition of ForeclosuresMass Monthly?

Get a FREE copy* of this month's newsletter (worth $49.97!) when you pickup your Real Estate Investors ONLY Free Gift (worth over $267.97!)

First Name:

Email Address:

* Next 37 17 investors only!

But Shapiro said the small number of cases in those areas – only about two dozen in each county – make those gains less statistically significant.

Statewide, default filings rose 66 percent from August 2004 levels to reach 1,128. For the entire January-August period, total Bay State defaults are running 33 percent ahead of year-ago levels.

Shapiro blames much of the problem on higher mortgage rates, a slower real estate market and so-called "cash-out" refinancings. That's where homeowners replace an old mortgage with a new, larger one and receive the difference in cash.

Add in a job loss, medical emergency, divorce or death in the family and many homeowners find themselves in trouble.

"A lot of people pulled out equity with a refinancing, (but) if they suddenly run into hardship, there's no money left," Shapiro said. "That equity is gone."

Want to avoid foreclosure?

Shapiro recommends that all homeowners build up enough emergency savings to last several months.

"One question I always ask folks is: 'How many paychecks away from foreclosure are you?' " he said.

Did you like this article? You May Also Like:

	Feature Article: Appraising a Property Without Stepping Foot on the Premises Steve Krasnow, Certified Residential Appraiser Determining a property's value in order to make the right offer or bid takes practice and experience. Knowing how to evaluate a property when you dare not step foot past the boundary line is another whole kettle of fish. In this article, Steve Krasnow gives four strategies for determining value - without having to tour the property.
	Legal Corner: Banks are willing to work with investors to find equitable solution Bob Tenney, Cunningham Machanic Bob Tenney, attorney at Cunningham Machanic in Natick, is on the frontline of the foreclosure process. Tenney and his firm review claims by lenders to review properties for foreclosure. If proper conditions are not met, they are also the folks who send out demand letters—the step that begins the foreclosure process for the homeowner. "We send the demand letter and give the homeowner time to reinstate their loans. If that doesn't happen we proceed with the foreclosure," says Tenney...
	Interview With The Expert: Richard Cohen Richard Cohen, Negotiation Coach and Consultant For any real estate investor, negotiation is a part of everyday life. Whether with tenants, contractors or homeowners, any time you are trying to influence someone else, you are negotiating. This month we speak with Richard Cohen, a negotiation coach, consultant and real estate investor, to understand more about this critical skill...
	Feature Article: Conventional Financing for Less Than Stellar Credit Jeffrey Chalmers, Real Solutions LLC Have a so-so credit score and need financing but aren't ready to go the private money route just yet? You can still get conventional financing - if you use a combination of lender and seller monies. Mortgage expert Jeffrey Chalmers explains the lending process and what banks look at when determining your loan amount and how you can work with motivated sellers to help finance that next deal.
	Feature Article: Use Exit Strategies to Reach Your Investing Goals Joseph A. Roche Planning your exit strategies will help you anticipate potential opportunities and problems and how you'll deal with them - as well as ensuring that you don't lose money on a deal. Real estate investor Joseph Roche discusses the six most common exit strategies, including wholesaling and lease options, and how and when to use each one to reach your investing goals.
	Feature Article: Getting Clear For a Great Next Year Sharon Teitelbaum, MA, PCC Lots of people set goals, but as experienced career coach Sharon Teitelbaum explains, that alone is not enough. Read on as Sharon offers five specific recommendations - recommendations which go beyond simply setting goals - to help you start or grow your real estate investment business in the coming year.
	Feature Article: Using Direct Mail Lists to Reach Potential Home Buyers Lois K. Geller Rookie real estate marketers spend 90% of their time on creative when putting together a direct mail campaign. Lois Geller explains why this is a backwards approach - and why you should focus on building a targeted list instead.
	Success Story: One Deal, $90,000... Dominic Kirchner II, Exit Realty Center Full-time realtor and professional investor, Dominic Kirchner II, received his Foreclosures Mass email one Friday afternoon. After reviewing the stats, he quickly downloaded the data and sent out inquiry letters to the people who had received foreclosure notices...
	Interview with the Expert: Incorporate Real Estate Into Your Financial Plan Judy Carryl-Young, Ameriprise Financial Services, Inc. Financial planners often see clients who want to put everything they own into real estate . . . sometimes with disastrous results. In this interview, licensed financial planner Judy Carryl-Young explains why single asset allocation may not be the best choice for you and how you can maintain your financial security by keeping a diversified portfolio.
	Feature Article: How to Become Financially Literate - Without Getting a Degree in Finance Ann Bellamy Think you need a finance degree to understand the real estate "numbers" game? Think again. Ann Bellamy, real estate investor and hard money broker, gives you seven tips on how you can become financially literate and comfortable with real estate investing. (Hint: Don't be afraid to take chances.)