Residential Foreclosures: Quarter Decline, Yearly Increase

October 20th, 2009 by Autor

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There are fewer residential foreclosures in Nashua, New Hampshire from July to September. However, the foreclosure numbers this year were already way pass the figures posted in the entire years of 2007 and 2008.

The drop in the number of foreclosure houses in the third quarter may be taken as a positive sign that the housing market is on its way to recovery. However, industry experts cautioned that the market is still too soft and vulnerable to external and internal changes that the foreclosure problem will continue to wreak havoc on the lives of many homeowners in the coming months.

Meanwhile, the easing in the number of residential foreclosures in Nashua in the third quarter was not duplicated in other areas of the state. In Hillsborough County, the number of foreclosure properties continued to soar last quarter. In Manchester, the number of distressed properties was 2 and ½ times greater than the level in the third quarter of 2007.

Similarly, in Nashua region, communities continue to see a rise in foreclosures. Badly hit by the foreclosure crisis in the region are Milford with a 50 percent increase in the number of foreclosed houses, and Hudson where foreclosures rose by three-quarters.

The foreclosure trend in the county in the third quarter is reflected nationwide. According to market data, the number of homeowners who received at least one foreclosure filing from July to September this year rose by 23 percent compared with the same period a year ago. Furthermore, the number of actual foreclosures for the quarter jumped by 21 percent.

According to industry experts, the continuing spread of foreclosures across the country showed that despite the waning effects of subprime loan collapse, recession and unemployment are major factors that make it difficult for many homeowners to pay their mortgage loans.

They also said that the increase in foreclosure numbers was due partly to the moratoriums and the delays adopted by lenders while waiting for the Obama Administration’s foreclosure prevention program.

Also, the rising unemployment rate is hindering many federal programs from achieving their goals of reducing the number of residential foreclosures.