Massachusetts Foreclosures Rate: Record High in 2006
In 1991, there was a recorded 17,000 Massachusetts foreclosure filings, setting a record high for the state. But as 2006 ended, a new record was set. About 19,487 foreclosure cases were filed by lenders against homeowners who failed to fulfill mortgage payment obligations. A research conducted by the Federal Reserve Bank of Boston showed that the increase in Massachusetts foreclosures rate can be blamed to bad credit mortgage loans or subprime loans.
The housing boom that lasted until 2005 created for the perfect opportunity for predatory lenders to take advantage of buyers with bad credit ratings. By relaxing underwriting approval guidelines, these buyers became homeowners of properties they could not afford in the first place. These homeowners agreed to take out mortgage loans with higher and variable interest rates. As interest rates soar and these adjustable rate mortgages re-set, many of these homeowners find them selves unable to make mortgage payments and lose their homes to foreclosure.
Many investors hunt for these Massachusetts foreclosures, hoping to purchase them for a fraction of their average market prices. If they are lucky, they could find homes being sold at half of its appraisal values. One of the best ways to find these Massachusetts foreclosures is by subscribing to reliable foreclosure listings from realtors like ForeclosureConnections. You can conveniently access hundreds of foreclosed houses for sale all over the nation. Compared to bidding at foreclosure auctions or hunting for “distressed properties”, foreclosure listings will provide you with an easier way to look for one of these Massachusetts foreclosures.
Massachusetts foreclosures offer investors with great return potential. Their very low prices automatically translate to instant equity. Some buyers convert foreclosure properties to rental homes while others simply renovate them and then sell them for a quick profit.
