Colleen Sullivan a Banker & Tradesman staff writer wrote an interesting article today, asking the question: Will the W Boston Residences need to go into a foreclosure auction?

The following are a few excerpts from the article:

Buyers Balk At W Bankruptcy

Though sales have been slow since the beginning, the fact that the W’s developers, SW Boston Ventures, declared Chapter 11 Bankruptcy in April isn’t helping matters. In early May, bankruptcy court filings by the developer listed 12 units as having signed purchase and sale agreements and awaiting closing. Only four of the units named have closed since then – though one buyer did back out of their original agreement in order to purchase a larger unit within the building.

While it’s normally difficult to extricate oneself from a purchase and sale agreement, the uncertainties created by the developer’s bankruptcy may provide an avenue for buyers to get out of their contracts, observers said. Additionally, lenders are scrutinizing the overall fiscal condition of condo buildings much more closely than in the past, according to Richard Vetstein, a real estate lawyer and founder of the Vetstein Law Group in Framingham.

“Anytime there’s financial distress and chaos, it might be time to renegotiate the deal,” Vetstein said.

Post-bankruptcy, two large units – one on the 27th floor and one in the penthouse – have sold for $2.2 million and $4.1 million, respectively. But in the sub-million-dollar price range, post-bankruptcy prices for the sales that have occurred have been considerably less than pre-bankruptcy prices.

Three units sold in December of last year – pre-bankruptcy – for $710,000, $750,000 and $850,000. Similarly-sized units sold in May – post-bankruptcy – went for $600,000, $635,000, and $655,000. It is not clear based on available data whether and how interior fixtures may differ among the units. All units examined were on comparable floors.

If it was left to the lender’s hands, the properties might already be on the block. Prudential Insurance Co. of America, which owns the senior debt on the property, has already filed a motion in court seeking the right to foreclose, arguing the developer’s lack of sales means a timely exit from bankruptcy is unlikely.

The property’s fate may be decided as early as next month, when the bankruptcy court is scheduled to hold hearings on Prudential’s petition to foreclose. Prudential did not return calls seeking comment.

Court filings reveal that the original loan agreement between SW Boston Ventures and Prudential required units be sold for certain minimum sales prices. While in bankruptcy, developers must seek Prudential’s permission to discount the units, which the insurance giant has granted to allow some of the post-Chapter 11 sales to go through.

A Little Leery

But it’s not clear whether the already steep cuts are deep enough, given the current environment. Recent luxury auctions have seen units go for an average of 70 percent below the original asking price.

The following excerpts are from a Banker & Tradesman article, headlined Bay State Foreclosure Petitions Drop In January:

The number of foreclosures started by lenders in Massachusetts during the month of January dropped to the lowest level in more than a year, according to a new report by The Warren Group, publisher of Banker & Tradesman.

Lenders filed 1,874 petitions to foreclose – which mark the first step in the foreclosure process in Massachusetts – in January, a 9 percent decrease from 2,060 in December and 4.4 percent drop from a year earlier. Foreclosure petitions exceeded 2,000 for most months in 2009, falling below that number only in January and November.

File Under: One good report after another.

Here’s an interesting piece from Banker & Tradesman, headlined Boston’s hardest hit neighborhoods finally hitting bottom:

… Sure, condo prices and sales finally slowed in downtown Boston, but Dorchester, Roxbury, East Boston, Mattapan and Hyde Park saw thousands of homeowners fall behind on their mortgages over the past few years, many losing it all.

The number of sales and open houses in Dorchester is on the rise after years of decline, the Dorchester Reporter notes.

I’ll take open houses over foreclosures any day.

First, the somewhat good news: Foreclosure filings were down slightly in September.

Second, the bad news: Foreclosure filings hit a record high in the third quarter as Massachusetts’ quarterly foreclosure rate continues to rise.

Third, the ugly news: Massachusetts’ jobless rate jumped to 9.3 percent in September, the highest level since 1976.

Gulp.

More than 100 housing-related bills are expected to be heard this week on Beacon Hill. One of them calls for a 180-day moratorium on foreclosures of buildings that house four separate households.

Another bill is called the “Act to Sustain Community Preservation.” It calls for the current $20 registry fee to be “adjusted” (i.e. increased) to ensure a steady stream of state funds for local preservation projects.

Some of these bills may indeed be worthy. But what’s the old line about no free man being safe when the Legislature is in session?

File under: Watch your wallet.