Hamilton and Wenham Foreclosure Rates Lower Than Most of State

After a steady decline since August 2010, foreclosures rose 42 percent in June across Massachusetts, according to a press released by The Warren Group, which publishes real estate data and financial information.

Despite the 42 percent rise statewide, Hamilton and Wenham have only had one home foreclosed upon in June. 

The home was located in Hamilton.

In the first half of last year, nine homes in Hamilton were foreclosed, while in 2011, only two have fallen to foreclosure. For Wenham, two homes were lost in 2010, compared to one home this year.

In a continually downtrodden economy, these two towns have faired particularly well, according to realtors.

"It's possible that properties in Hamilton and Wenham are more salable than some properties in less affluent communities," said Timothy Warren, CEO of the Warren Group. "Foreclosures have been hitting all sort of economic strata. It's not something that the affluent towns are completely immune from."

Local Realtor Jay Burnham said he believes Hamilton and Wenham have been lucky to have such few homes foreclosed upon.

"Because of strong sense of community, people live there for the rest of their lives," said Jay Burnham about the two communities. "In that sense, people have paid off their mortgage and people work really hard to stay where they are."

Just this morning, Burnham, a resident of Hamilton, said he was at the local coffee shop with a group of friends. "Nobody could think of any home that had been foreclosed upon in Hamilton or Wenham," Burnham said. 

Burnham believes a reason these two towns have such a low number of forecloses is because banks would rather short-sell the property than have it foreclosed upon. 

"It's a step before foreclosure," Burnham said of short-selling. When the lender, usually a bank, agrees to the terms of a short-sale, they are accepting less money than is owed on the property. 

Agreeing to a short-sale is better for the owner because it doesn't hurt their credit, according to Burnham. 

"With a foreclosed property, there is a certain stigma," Burnham said. "Nobody likes to see them." 

Eric Erickson, a realtor with Keller Williams Realty, said he thinks the reason Hamilton and Wenham do not have many foreclosed properties is because of their size. 

"Wenham's total population is estimated at 4,778 and Hamilton's is 8,251, so in relation to other North Shore communities they are small in comparison," Erickson said. 

Regardless, Burnham and Warren believe that things will get worse before they get better. 

"I'm afraid it's going to get worse," Burnham said. "I hate to say that, as a realtor, but I am going to be honest. I think we have hit rock-bottom; we have been bouncing around in the bottom for a year."

Warren said he expects foreclosure rates to increase in the second half of this year. 

"I think things were worse a while ago," Warren said, "From where we are now, we'll probably see more foreclosures at the end of the year."