Foreclosures drop in Wellesley, statewide

By Erica Noonan, Globe Staff

Foreclosure activity in Massachusetts has dropped significantly this year compared to 2008, and analysts say they hope things will continue to improve in 2009.

Wellesley homeowners seem to be tolerating the crisis better as well.

By this time last year, three local homes had gone into the final stages of foreclosure. This year, there have been none, according to The Warren Group, publishers of Banker & Tradesman.

Statewide, the number of foreclosure deeds fell from 4,171 in the first four months of last year, to 3,510 year-to-date in 2009, a nearly 16 percent drop.

Foreclosure petitions, the first step of lengthy and reversable foreclosure actions taken by lenders, also plummeted by 30 percent across Massachusetts, to 8,649 between January and April 2009, from 12,336 during the same period last year.

The situation seems to be improving even more as the year wears on, the analysts said.

A total of 755 foreclosure deeds were recorded last month in Massachusetts, compared to 1,344 in April 2008, a nearly 44 percent drop.

Foreclosure auctions also took a steep dive, with announcements of auctions dropping by nearly 46 percent in comparisons between April 2008 and last month. In Wellesley, only four auction proceedings have been announced this year, as compared to nine by this time in 2008.

Wellesley's neighbors also generally saw drops in forelosure activity.

Needham has seen no foreclosure deeds issued so far this year, compared to two last year Waltham has had three deeds issued so far in 2009, as compared to four by the same time in 2008.

Foreclosure activity in Newton, a much larger housing market, has dropped overall by more than 35 percent. But the number of foreclosure deeds issued ticked upwards to six so far in 2009, compared to just four homes between January and April of last year.

While foreclosure rates look to be stabilizing, experts warned that the mortgage crisis that has plagued many Boston-area communities is not over for good.

"I'm a little cautious about being overly optimistic with this latest report because the employment picture hasn't changed much and mortgage loan delinquincies have been trending up," said Timothy M. Warren, The Warren Group's CEO, in a statement released yesterday.