Data just released by a collection of city and state agencies and reported by The Warren Group shows that many of those facing trouble paying their home mortgage loans have had their loans for very short periods of time. Many were unable to pay, from the very beginning.

Number-crunchers from Boston’s Department of Neighborhood Development, the Federal Reserve Bank of Boston and the state Division of Banks have identified some surprising facts about foreclosures ..

… Among the more troubling aspects of the current situation is the number of borrowers experiencing problems with their mortgages soon after receiving them and well before those with adjustable loans are scheduled to see their interest rates reset to higher levels.

More than half the Boston homeowners facing foreclosure this year have had their loans for less than two years, said Department of Neighborhood Development Deputy Director for Home Buyers Assistance Bill Cotter.

While resetting adjustable-rate loans have been cited as a major cause for the current foreclosure problems, Cotter said that many of the borrowers experiencing difficulty have actually had their mortgages for too short a time to see rate resets occur.

A separate analysis by The Warren Group showed almost a third of homebuyers facing foreclosure had owned their homes for less than two years.

This is something I’ve suspected ever since I started reporting foreclosures information from the Suffolk County Registry of Deeds. I’d say around 66% of the loans going into foreclosure were written in 2006. This is unexpected, as many of these are fixed rate, meaning the monthly payments never increased, and many of the rest were 2/28 loans, and monthly payments had not yet increased, at all.

To a certain extent, the new data only supports what many suspected, all along.

The problem of foreclosures is not primarily due to resetting loan rates, regardless of what the media tells you.

It’s a problem of the wrong people given the wrong loans. Or loans at all.

Fingers are being pointed at the lenders much more than at the borrowers.

I think you know how I feel about that!

More: Scope of Foreclosure Crisis Measured – By Amy Wyeth, Banker & Tradesman

Contact me to find out more about Boston condos for sale or to set up an appointment call/text 617-595-3712.

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Updated:  1st Q 2018

Author Profile

John Ford
John Ford

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs

In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.


For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.


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John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.

John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114



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