Drop in Foreclosure Rate Attributed to Economic Growth

For the first time all year, foreclosure petitions for the month of June have fallen below 1,300 in the state of Massachusetts, but overall still remain above last year's numbers.

"A total of 1,254 petitions were recorded in June—a 29.5 percent decrease from May. Year-over-year foreclosure petitions, however, rose almost 27 percent in June, from 990 in June 2011. From January through June, 9,131 petitions to foreclose have been filed statewide, up 68.6 percent from 5,415 during the same period in 2011," a release from The Warren Group said.

CEO of the Warren Group, Timothy M. Warren Jr., attributed this month’s drop to an uptick in the economy.

“It’s pretty significant to see foreclosure petitions drop by almost 30 percent from just a month ago,” Warren said. “I believe that an improving economy, more jobs and an active real estate market are having an impact and giving us a moderating trend in foreclosures.”

In Natick, foreclosures have remained low over the past few years.

"Foreclosures aren’t really an issue in Natick," Kevin Wiggin of said. "There are a few but not enough to have any impact on the market.” 

Do you think a month-over-month drop in foreclosure filings means the economy is improving? What do you think in the increase over this time last year? Sound off in the comments.