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Massachusetts Foreclosures Down, Petitions Up

Massachusetts foreclosures are at a six year low, reports The Boston Globe.

According to The Globe, October's numbers were 52 percent lower than October 2011. Only 371 Massachusetts homes foreclosed in October.

That's great news for many. To starter, it signals the positive economic recovery in and around the Boston area. A large part of the economic downfall centered around the housing bubble and the subsequent housing market crash. Less foreclosures are certainly indicative on many levels of growth in the housing market.

Couple this with the fact that housing sales and commercial real estate sales are up and we have a very positive outlook for the housing market. Keep in mind that those numbers only indicate the number of homes that were lost to foreclosure. It doesn’t take into account houses still in the foreclosure process or houses where the foreclosure notices have recently been posted.

In fact, if we’re to consider those numbers, then data indicates that those numbers actually increased 22 percent from last October, as many more lenders sent foreclosure petitions to homes this October.

What’s interesting is that a foreclosure petition doesn’t always end in a foreclosure. In many events, the foreclosure petition is sent out but the house ends up on the market in a short sale.

What’s the difference? A foreclosure has a slightly higher impact on a credit rating. Secondly, it can be a more harrowing experience, where the lender eventually comes in and changes the locks.

A short sale is more complicated, but if done right, it not only provides less of a credit score hit, but also allows the homeowner to leave the house in a less stressful manner. It’s like a regular sale but with the bank forgiving a large part of the debt, after negotiations.

With the rising foreclosure petitions but lower foreclosed homes in general, one can only assume that it’s a good time to short sell a home, as banks might be approving more and more short sales.

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