Melrose Foreclosure Starts Down, Auctions Up in May Compared to Last Year

Melrose saw fewer foreclosure proceedings start in May compared to the same month last year and the number of foreclosure auctions increase, but overall foreclosure activity is drastically lower so far this year, according to the lastest figures from The Warren Group, publisher of Banker & Tradesman.

However, Vincent Valvo, group publisher and editor-in-chief of Banker & Tradesman warned in a press release that the figures may paint a rosier picture than is true.

“Delayed foreclosures are masking the reality of the market,” Valvo said in the press release. “Lenders are continuing to be cautious with the legal process, which is causing a drop off in foreclosure starts and deeds.”

Four foreclosure petitions—the first step in the foreclosure process—were filed against Melrose properties in May, compared to six petitions in May 2010. Statewide foreclosure petitions dropped almost 67 percent year-over-year to 699, from 2,110 in May 2010.

Both Melrose and Massachusetts as a whole have seen far fewer foreclosure petitions filed this year compared to last year-to-date. Only nine petitions have been filed in Melrose so far in 2011, compared to 24 through May last year, a drop of more than 62 percent. Statewide foreclosure activity through May is down 60 percent compared to the same period last year.

One foreclosure deed, which represents a completed foreclosure, was filed against a Melrose property in May, the same number as in May 2010. That's only the second foreclosure deed filed so far this year in the city, compared to 10 deeds filed year-to-date through May in 2010.

Statewide foreclosure deeds posted the lowest monthly number so far this year, according to The Warren Group, decreasing almost 65 percent to 454 in May from 1,294 in May 2010. A total of 2,566 foreclosure deeds have been recorded in the first five months of the year, down 58 percent from 6,118 a year earlier.

The one area where Melrose saw an increase in foreclosure activitiy was in advertised auctions, with five in May, compared to two in May 2010. Year-to-date auctions are still down more than 26 percent, however, with 19 auctions so far in 2011, compared to 26 through May 2010.

Statewide, the number of advertised auction notices dropped in May, with 1,832 auction announcements, a decrease of 36 percent from 2,860 a year ago. Year-to-date auction notices in Massachusettes decreased 53 percent to 6,507 from 13,974 last year.