Regardless of the area of Massachusetts the state from Boston to Cambridge, Framingham to Nashua, from Newton to Peabody, or Quincy to Waltham, or any town or city in between The Bay State has been affected negatively by the global economic meltdown caused in large part by the mortgage meltdown that preceded it.
MA foreclosure listings are in no short supply as the state ranks in the Top 20 in this dubious honor. The higher than average number of foreclosures is in large part due to its incredible success of decades as a manufacturing and agricultural state followed by its transference to a services, high technology and educational economy. This transition has created a density of population that ranks #3 of all states with the vast majority of the entire population living in the urban and suburban communities of the states metro areas.
Regardless of the causes of the migration to the cities and suburbs the facts are that foreclosures in Massachusetts are on the rise and should be for the near future. Most experts agree that the foreclosure epidemic in the state was caused almost exclusively by the sub-prime mortgage market collapsing under its own weight and the repercussions will be felt through the next several years. Foreclosures will continue until the remaining subprime mortgages have been purged from the system. Until such time look for foreclosures to remain fairly stable as banks and mortgage institutions attempt to allow foreclosures on to the market in a controlled release. By controlling the release the bottom of the real estate market will be reached slower and more gradually, thus negatively impacting mortgages they are currently servicing less and stabilizing the market. At least that is the plan.
As the 44th largest state and the state with the 3rd highest population density, Massachusetts has nothing if not opportunity. Combined with the fact that the unemployment rate in Massachusetts provides the 3rd highest per capita income and the unemployment rate is lower than the national average, Massachusetts is poised for a speedy recovery from the economic doldrums that have impacted the entire country.
The real estate investment environment is unlike anything the residents in Massachusetts have ever seen before and should not be overlooked by both professional investors and investors new to the industry.
Massachusetts gross state product is roughly equivalent to the entire country of Saudi Arabia and Venezuela at over $365 Billion. An economy in such as small state combined with an incredibly high per capita income and a lower than average unemployment figure will likely lead to a return to prosperity at record levels.
As the real estate market continues to reset itself and prices continue to adjust and mortgages also continue to adjust, more and more residents of Massachusetts will lose their homes by merely walking away from what appears to be an untenable financial position. If the average home in Massachusetts has lost 10 to 15% of its value than the average mortgage will take 5 additional years before it starts to build its first dollar of equity.
This is negative equity position that so many home owners find themselves in, sometimes referred to as "Being underwater" or "Upside down" on a mortgage is motivating more and more Bay Staters to stop paying their mortgage as the insult is exacerbated by injury when the mortgage rate is adjusted upwards and quickly becomes unaffordable on its altogether.
You should be buying homes that have gone to foreclosure. Buying as many homes below market as your credit can withstand. Why buy in a down market? Buying in a down market and not trying to time the market to purchase on the exact day that the market sees its lowest point will allow the smart investor to buy more foreclosed homes and rent them out before buying additional homes and repeating the process. Remember all of those people that lost their homes will still need a home to live in and provide their family shelter. This is where the greatest boom in recent history for the state of Massachusetts will come from. If you are not in the game, get in the game.
Foreclosure buying opportunities will continue as interest rates adjust on thousands of subprime mortgages that were taken on homes while downward pricing pressure eliminates the possibility of refinancing. Experts agree that this perfect storm of foreclosures will increase over the next several years. So what do you do to take advantage of the current real estate market regarding foreclosure? Buy foreclosure homes now!
Read more about how to buy foreclosures and educate yourself on the communities you are most interested in buying a foreclosure and start shopping here for the foreclosure home that meets your needs. If you are facing a pending foreclosure call a local real estate professional and determine what types of options you have. Your options will depend on your particular situation. Variables that are particular to Massachusetts include where a home is located, density of that areas population, which can vary greatly in Connecticut, how much is owed on the home and how much the particular home is worth in today's market.
Q. Does the higher number of foreclosures mean that there are too many homes already for the population?
A. No, Massachusetts has been and will continue to be The destination for high tech, higher learning and innovations yet to be seen. Massachusetts has a very strong economic base. Residence will always need homes and a good investment today in a down market will result in a better upswing in the future.
Q. Has the average home in Massachusetts lost more of its value than in other places?
A. No, the entire housing market has seen a down turn in prices and Massachusetts is no different from every other state in that regard. The one difference is that Massachusetts is more diverse, is more educated and has a highly skilled workforce. This is all good news for the Foreclosure investor in the Bay State!