Foreclosures in Essex County rise faster than state average
Home foreclosures in Essex County soared 133 percent in May, surpassing the statewide average 107 percent increase in the number of foreclosure deeds compared with May 2007, according to The Warren Group, a Boston-based publisher of real estate data.
Lynn, the largest city in the county, had 45 homes foreclosed upon in May compared with 21 in May 2007. Haverhill had 21 foreclosures for the month, compared with 13 a year ago. Peabody had eight homes foreclosed upon, compared with just one in May 2007. Salem also had eight home foreclosures, up from three for the same month last year, the data show.
Cities in Suffolk and Middlesex counties also continue to struggle. Chelsea had 10 homes foreclosed in May, compared with four in the same month last year. Revere had 28 foreclosures, up from 11 in May 2007. Everett's foreclosures jumped to 12 in May, compared with five a year ago. Malden had a moderate increase, with foreclosures jumping to 15 in May from 11 in May 2007.
Timothy Warren, chief executive officer of The Warren Group, said the high foreclosure rates reflect weakness in the overall real estate market.
"Because houses are moving so slowly, and there are so few sales, prices are starting to drop," he said. "That is not going to help anybody threatened with foreclosure. Falling prices will make it all the more difficult. . . . I think we'll see a lot more foreclosures, at least through the end of the year."
Foreclosure deeds reflect the actual number of homes that hit the auction block in a community. Foreclosure petitions - the first step in the long process - reflect the numbers of homes that are headed for trouble.
A new state law, which took effect May 1, requires lenders to wait 90 days before starting foreclosure procedures against a borrower. Prior to the law, a lender could start to foreclose 30 days after a loan was in default. The law resulted in a sharp decline in the number of foreclosure petitions filed statewide. In Essex County, for example, 55 petitions were filed, compared with 252 in May 2007.
Warren said he thinks the reprieve may only be temporary.
"The law slows things down, " he said. "But whether anyone is able to catch a break, sell their house, or refinance won't be known until August. That's when any foreclosures [scheduled for] May can be filed."
Toll collections fell 3.8 percent across the state from July 3-6 this year, compared with the same four-day period last year, according to figures from the New Hampshire Department of Transportation.
Overall, 1.2 million vehicles passed through the toll booths on the holiday weekend, down from 1.3 million last year, the figures show.
The Hampton toll booth, which also draws traffic from people headed to Maine, posted a 5.9 percent increase for the weekend. But the nearby Hampton Ramp toll, which leads to inland areas of New Hampshire, declined by 5.9 percent for the same period.
A state spokesman links the drop to high gas prices that now top $4 per gallon. But the cloudy skies and cool weather on the Fourth of July weekend may also have been a factor.
"I think it's a reflection of that," said Bill Boynton, spokesman for the transportation department. "If you get a sunny 85-degree day, you're going to get a bump in traffic. But that wasn't the case this year."
This year's winners are: Lindsey Andon, Chelsey Bergsten, Kara Manton, Masconomet Regional High School in Topsfield; Melanie Carr, St. Mary Jr.-Sr. High School in Lynn; Rahul Desai, Lynnfield High School; Stephen Gutz, Danvers High School; Susan Livermore, Wilmington High School; Sinead Persaud, Marblehead High School; Jessica Pultz, Needham High School; Peter Rock Jr., Triton Regional High School in Newbury; Ken Schumacher, Andover High School; Muna Sheikh, North Andover High School; Hilary Strong, Weston High School; Lauren Ward, Peabody Veterans Memorial High School.
Kathy McCabe can be reached at kmccabe@globe.com
