Melrose Foreclosures, Like Mass., Continue to Rise

Like the rest of Massachusetts, Melrose saw foreclosure activity in 2012 remain at higher levels in April, according to the latest figures from The Warren Group.

The Warren Group said in a press release that foreclosure petitions, which mark the first step in the foreclosure process, posted the highest number in nearly two years this past April.

Four foreclosure petitions were filed against Melrose properties in April, compared to none in the same month last year. Statewide petitions rose almost 47 percent year-over-year to 1,750 from 1,191 in April 2011. This was the highest level of petitions since September 2010, when there were 2,358 starts, The Warren Group said in the press release.

So far in 2012 there have been 16 petitions filed in Melrose, compared to five filed in the first four months of 2011, a 220 percent increase. Statewide, 6,098 petitions have been filed, up 64 percent from 3,726 during the same period in 2011.

Cory S. Hopkins, editorial director of The Warren Group, noted in the press release that foreclosure activity "was so low last year" that Massachusetts is seeing an inevitable rise in foreclosures across the state.

"It's necessary for a wave of foreclosures to work through the system this year, but it shouldn't cause panic," Hopkins cautioned. "In order to return to a healthier market, the backlog of distressed properties needs to be cleared from banks' books."

Completed Foreclosures Also Rise

In April, there were two foreclosure deeds, which represented completed foreclosures, filed against Melrose properties, compared to none in the same month last year. Statewide foreclosure deeds increased more than 19 percent to 714 in April from 598 in April 2011.

So far in 2012, there have been eight completed foreclosures in Melrose, compared to one in the first four months of last year. Statewide, a total of 2,968 foreclosure deeds have been recorded in the first four months of the year, up 30.5 percent from 2,275 a year earlier.

Advertised auction notices also increased in Melrose in April, although statewide numbers dropped. There were eight auction announcements in Melrose, compared to two in the same month last year, while statewide there were 1,354 auction announcements in April, down 2 percent from 1,382 a year ago.

Year-to-date, there have been 17 auction announcements in Melrose, compared to 14 in the first four months of last year. Statewide year-to-date auction notices are up 18 percent to 5,528 from 4,675 last year.