Massachusetts Multifamily Homes Fall Victim to Foreclosure in Feb.
- Mar 31, 2008
Boston–Foreclosures of two- and three-family homes last month outpaced foreclosures of other property types, including single-family homes and condominiums, according to Boston-based real estate data firm the Warren Group.Buildings that house three families–called three-deckers–have been an affordable housing option for working-class and immigrant families and have achieved an iconic significance in Massachusetts, the Boston Globe said Monday. The Warren Group doesn’t have a reason for the high foreclosure trend but said it might involve ownership. Many two- and three-family homes are owned by investors who are abandoning the properties as the market continues to decline.”Maybe it’s that many owners of small multifamilies are very dependent on rents and are more likely to default if they can’t fill their apartments every month,” Warren Group chief executive Timothy Warren Jr. said in a statement.Petitions to foreclose–the first step in the foreclosure process–showed a 27 percent increase in February from February 2007.Despite the fact two- and three-family structures comprise just 11 percent of the state’s housing inventory, 23 percent of the total foreclosure petitions were filed against multifamily homeowners, the Warren Group said.For every two-and three-family home sale transaction in February 2008, 1.8 petitions to foreclose were filed.