Massachusetts Preforeclosure Trends: 2025 Update

Massachusetts is seeing a 30% rise in foreclosure filings in 2025, largely due to high interest rates (6.65% for 30-year fixed mortgages) and a backlog of pandemic-delayed cases. Despite this, the housing market remains strong, with median home prices climbing 4% year-over-year to $750,143.

Key Takeaways:

• Foreclosure Rate: 1 in every 5,677 housing units (May 2025).
• Home Values: Average home price is $658,559, up 2.7% in the past year.
• Investment Opportunities: Preforeclosure properties offer discounts, with motivated sellers often willing to negotiate.
• Zombie Properties: Vacant homes in foreclosure dropped 48.7% from 2024, improving neighborhood stability.

For investors, the combination of rising preforeclosure activity and strong property values presents unique opportunities. Focus on areas like Worcester, Springfield, and Pittsfield for high cap rates and low vacancy rates.

IS THE REAL ESTATE MARKET CRASHING AGAIN?

Massachusetts Preforeclosure Activity Data

In December 2024, Massachusetts recorded 487 foreclosure filings, which equates to about 1 filing per 6,159 housing units[5]. This figure offers a clear snapshot of the current state of the housing market.

2025 Preforeclosure Numbers by County

Middlesex County reported the highest number of foreclosure filings in December 2024, with 132 cases. Worcester County followed with 116 filings, while Essex County recorded 94 filings during the same period[5].

When looking at foreclosure rates, Hampden County stood out with the highest rate - 2.40 foreclosure petitions per 1,000 owner households, well above the statewide average of 1.26[6]. Additionally, Plymouth and Franklin counties frequently appeared among those with elevated foreclosure rates. For example, in May 2025, Plymouth, Hampden, and Franklin counties led in foreclosure rates[2]. These localized trends can guide investors in assessing risk more effectively.

Filing Trends: Quarterly and Annual Changes

Foreclosure petitions in Massachusetts have been on a downward trajectory since March 2023, following nearly two years of increases[6]. However, after the Homeownership Assistance Fund (HAF) program ended in July 2023, there was a slight rise in petitions. Even so, the numbers remain below pre-pandemic levels[6]. Foreclosure deeds, meanwhile, have stayed consistently low since spring 2020, with only minor fluctuations[6].

In 2025, monthly foreclosure rates showed some variation. In January, Massachusetts reported one foreclosure for every 5,888 housing units. By April, this figure shifted slightly to one in every 5,442 housing units[7][1]. These trends provide valuable insights when comparing Massachusetts' preforeclosure activity to national patterns.

Massachusetts vs. National Preforeclosure Data

Analyzing county-level and quarterly data helps position Massachusetts within the broader national context. On a national scale, Massachusetts ranks in the middle tier for foreclosure activity. In 2025, the state ranked 24th in January, 28th in April, and 31st in May for foreclosure filings[7][1][2]. This indicates that while local filings have increased, other states have experienced more dramatic surges.

Massachusetts saw a 45.6% increase in foreclosure filings from 2023, with 3,411 properties entering foreclosure, placing the state 12th nationally[8]. In contrast, national foreclosure filings dropped by 7% year-over-year in January 2025[7]. While Massachusetts' foreclosure rate stood at one in every 5,888 housing units, states like Delaware (one in 1,839) and Illinois (one in 2,756) reported much higher activity. Vermont, on the other hand, had the lowest rate, at one in every 30,467 housing units[7][8]. For context, the national average foreclosure rate in Q1 2024 was one in every 1,478 housing units[8].

Rob Barber, CEO of ATTOM, highlighted the national trends:

"April's foreclosure activity continued its gradual climb, with both starts and completions up annually. While volumes remain below historical norms, the year-over-year increases may suggest that some homeowners are beginning to feel the effects of persistent economic pressures."[9]

Chris Doherty provided insight into Massachusetts' situation:

"The increase is also driven by a backlog from foreclosure delays implemented during the pandemic by the Biden administration. Much of that delayed activity is now catching up, leading to more filings."[3]

Market Changes and What Causes Them

Understanding the key drivers shaping the real estate market in 2025 can help investors fine-tune their strategies. In Massachusetts, economic factors this year have created both hurdles and openings for real estate professionals. These developments build on earlier trends, offering a clearer picture of current market behaviors.

What Drives Preforeclosure Market Changes in 2025

In 2025, a combination of 6.5% average interest rates and the resolution of pandemic-era delays has led to a 30% spike in foreclosure filings[15][3]. This shift is stark compared to the historically low rates of 2020–2021, when many homeowners secured mortgages with rates under 3%.

Adding to the pressure, rising living expenses and increased housing costs are straining homeowners financially. In Massachusetts, a streamlined non-judicial foreclosure process has further compounded these challenges[12]. While the state still enjoys relatively strong employment, the median home price has climbed to $750,143 - a 4.0% increase from the previous year - making it even harder for distressed homeowners to find affordable options[15].

Rob Barber commented on the broader economic factors influencing these trends:

"However, other external factors may be at play such as rising interest rates, inflation, and shifting employment and other market dynamics. We remain vigilant in monitoring these trends to understand their full impact on foreclosure activity."[16]

These market pressures are significant, but the role of home equity in foreclosure outcomes provides an additional layer of complexity.

How Home Equity and Fixed Mortgages Affect the Market

Despite the rise in foreclosure filings, the overall distress level remains relatively contained, thanks to strong home equity positions. Homeowners who bought or refinanced during the low-rate period of 2020–2021 continue to benefit from fixed rates below 4% and significant equity gains. This has acted as a safety net, reducing the likelihood of foreclosure for many[10].

Market data underscores this trend: short sale units dropped 41.7% in 2025, from 24 units in 2024 to just 14 units so far this year. Similarly, lender-owned units sold have decreased by 35.3%, from 170 in 2024 to 110 in 2025[14]. Homeowners with low fixed rates are holding onto their mortgages, which has tightened inventory, even as preforeclosure opportunities arise.

Ali Haralson, President of Auction.com, highlighted the impact of home equity:

"While the number of distressed homeowners has returned to pre-pandemic levels, many are avoiding foreclosure thanks to ample home equity that allows them to sell through a pre-foreclosure sale."

For investors, this creates a unique scenario. Properties entering preforeclosure often involve homeowners with insufficient equity or limited time to sell traditionally. Single-family homes now have a median price of $650,000, reflecting a 4.2% increase year-over-year, which underscores the strength of the market's pricing power[14].

Rob Barber also pointed out the stabilizing effect of home equity:

"While levels remain below historical averages, the quarterly growth suggests that some homeowners may be starting to feel the pressure of ongoing economic challenges. However, strong home equity positions in many markets continue to help buffer against a more significant spike in distress."[13]

Additionally, the number of zombie homes - properties left vacant during foreclosure - has dropped by 48.7% compared to last year[11]. For investors eyeing preforeclosure opportunities, understanding equity dynamics is essential. Homes with limited equity may offer better negotiation opportunities, while those with high equity often transition quickly to traditional sales. This requires investors to act swiftly and make competitive offers, balancing equity considerations with broader market trends to refine their strategies.

Vacant Properties and Empty Homes in Massachusetts

As foreclosure trends continue to evolve, managing vacant properties remains a key focus for preforeclosure investors. In 2025, Massachusetts made strides in addressing zombie properties. Strong buyer activity and quick market absorption have helped maintain stability in neighborhoods across the state.

Vacant Property Numbers: Year-Over-Year Changes

Massachusetts recorded the largest annual drop in zombie homes among states with 50 or more cases, with a notable 48.7% decrease in Q2 2025. The number of zombie properties fell from 76 in 2024 to just 39 in 2025 [17][19]. Nationally, 3.3% of preforeclosure properties were classified as zombie homes in Q2 2025, up slightly from 2.9% during the same period in 2024 [17][20].

Barnstable, Massachusetts, stood out with a 0% zombie foreclosure rate - the lowest in the nation - indicating that none of its preforeclosure properties remained vacant during the foreclosure process [17][18]. Meanwhile, states like North Carolina, Iowa, and Texas saw increases in zombie properties, highlighting the success of Massachusetts' foreclosure management approach.

Rob Barber, CEO of ATTOM, commented on these trends:

"Thankfully, we're not seeing a lot of homes sitting vacant due to pending foreclosures, which is good for families, neighborhoods and the market." [11]

These improvements in vacancy rates have significant implications for investment risks, as outlined below.

How Low Vacancy Rates Affect Investment Risk

The declining number of vacant properties in Massachusetts has created a safer investment environment. With a statewide vacancy rate of just 2.5%, well below the national average of 6% [23], investors face fewer risks tied to property neglect or deterioration.

Vacant homes often fall into disrepair without proper maintenance, becoming targets for vandalism and reducing neighborhood safety. However, Massachusetts' ability to quickly absorb distressed properties ensures they don't remain empty long enough to cause such problems. This helps preserve property values in surrounding areas [21][22].

Rob Barber highlighted the importance of these trends:

"Investors and residents reject a return to the 2008 crisis of vacant, blighted homes." [11]

These conditions not only protect neighborhoods but also enhance investment opportunities. Low vacancy rates contribute to stronger pricing power and simplify the due diligence process for investors. Massachusetts' tight housing market and strong rental demand mean properties are quickly sold or rented. With a median Greater Boston rent of $3,100, rental income is both reliable and competitive. Additionally, the scarcity of zombie properties supports long-term property values, making the state particularly appealing for investment strategies like DSCR loans, which focus on property cash flow rather than personal income [23].

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Investment Strategies and Opportunities

Massachusetts' preforeclosure market offers promising opportunities for savvy investors who know how to use data and focus on the right locations. With foreclosure notices up by 30% in both Massachusetts and New Hampshire, those employing strategic methods can pinpoint high-potential deals while keeping risks in check [3]. A data-driven mindset naturally leads investors to prioritize areas with steady occupancy rates.

Using Data to Manage Investment Risk

In 2025, leveraging current data and AI insights is a must for successful preforeclosure investing. AI tools now provide more precise market predictions, helping investors determine the best times to buy or sell [24]. These tools analyze real-time trends, neighborhood growth, and specific property features to deliver accurate pricing estimates [24].

Reducing risk starts with understanding distress scores and digging into property-specific data before making any commitments. Massachusetts ranks #12 in the nation for foreclosure rates, with one foreclosure for every 3,870 housing units [25]. Despite this, foreclosed properties often sell for about 15% below market value, presenting a strong opportunity for well-prepared investors [25].

Focusing on preforeclosure properties is key, as homeowners in this stage are often eager to negotiate quickly to avoid full foreclosure. That said, thorough due diligence is essential. Investors need to account for potential repair costs and ensure inspections and contingencies are included in purchase agreements. These steps provide the flexibility to back out if title issues or inspection problems arise [4].

Targeting Areas with Low Vacancy Rates

Worcester stands out as a prime investment spot with a 0.0% rental vacancy rate among major metropolitan areas [26]. This unparalleled occupancy rate, paired with a multifamily cap rate of 6.7%, makes it particularly appealing for preforeclosure investments [27]. Additionally, Worcester's median home price has climbed 7.8% to $443,717, underscoring its strong market conditions [15].

For those seeking more affordable options with higher cap rates, Springfield and Pittsfield are excellent alternatives. Springfield boasts a 2.4% multifamily vacancy rate and an 8.2% cap rate, while Pittsfield offers a 4.0% vacancy rate and an impressive 8.9% cap rate [27]. Both cities provide a mix of rent growth, rising home values, and lower entry costs compared to Boston.

Here's a breakdown of key investment metrics for Massachusetts' top preforeclosure markets:

When choosing preforeclosure investments, focus on locations with robust job markets and access to public transit. Massachusetts continues to experience strong migration trends, particularly from states like New York, Connecticut, and California, which helps sustain rental demand across these markets [15].

How LeadList.Pro Helps Investors

To complement data analysis and targeted strategies, LeadList.Pro offers tools designed to simplify decision-making in Massachusetts' competitive preforeclosure market. This service provides weekly preforeclosure leads enhanced with AI insights and manual verification, including distress scores to help investors assess opportunities quickly.

The leads include up-to-date information pulled directly from local court filings across all Massachusetts counties. Each lead package contains complete property and contact details in an organized CSV format, making it easy for investors to analyze and follow up. The AI Street View Analysis feature adds another layer of insight, offering property visuals without requiring in-person visits.

LeadList.Pro also allows investors to target specific counties. For high-demand areas like Worcester County, Essex County, and Middlesex County, comprehensive lead packages are available for $249 per month. Smaller counties, such as Franklin, Hampshire, and Nantucket, are offered at $99 per month, making the service accessible for investors of all scales.

The manual verification process ensures property ownership details are accurate, saving investors time by filtering out invalid leads. Each lead package also includes attorney information, giving investors a clear understanding of the legal status of preforeclosure cases and enabling more informed homeowner outreach.

With no minimum commitment, investors can experiment with different counties or shift focus as market conditions evolve. This flexibility is particularly valuable in 2025's dynamic preforeclosure landscape, where elevated interest rates and lingering pandemic-related delays have driven an uptick in foreclosure activity [3].

Summary: Massachusetts Preforeclosure Market Findings

Main 2025 Preforeclosure Findings

The preforeclosure market in Massachusetts during 2025 presents both challenges and opportunities. The state saw a 30% increase in foreclosure filings compared to the previous year [3]. In the first quarter alone, 1,370 properties entered foreclosure, translating to one foreclosure for every 2,200 housing units [13]. These numbers provide insight into the shifting dynamics of the market.

One positive development is the state's progress in reducing "zombie" properties - vacant homes stuck in preforeclosure. Massachusetts led the nation among states with at least 50 such properties, achieving a 48.7% year-over-year drop in zombie homes [11].

"Thankfully, we're not seeing a lot of homes sitting vacant due to pending foreclosures, which is good for families, neighborhoods and the market." – Rob Barber, CEO of ATTOM [11]

The increase in foreclosure activity is largely tied to higher interest rates and lingering delays from the pandemic [3]. However, the impact remains limited due to a strong seller's market and low housing inventory. Home values continue to climb, with the statewide median price reaching $750,143, up 4.0% year-over-year [15]. Key cities like Worcester and Boston are also seeing growth. Worcester's median home price rose by 7.8% to $443,717, while Boston's values increased by 4.4%, reaching $739,121 [15].

Next Steps for Investors

Given these trends, Massachusetts' preforeclosure market in 2025 demands strategic, data-driven decisions. With 2,882 properties currently in foreclosure and 539 heading to auction [28], investors need access to accurate and timely information. Traditional court filings can be slow and incomplete, making reliable data essential.

Platforms like LeadList.Pro offer a competitive edge by providing weekly preforeclosure leads with AI-enhanced distress scores and detailed property information in CSV format. Investors can target specific counties with plans ranging from $99 to $249 per month, with no long-term commitment required. This flexibility allows investors to adapt as market conditions change.

The combination of rising foreclosure filings and fewer zombie properties points to a more efficient market where distressed properties are moving faster. Those who utilize real-time data will be better positioned to seize opportunities in Massachusetts' evolving preforeclosure landscape.

FAQs

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What impact are rising interest rates and pandemic-related delays having on Massachusetts foreclosure trends in 2025?

Foreclosures on the Rise in Massachusetts in 2025

Massachusetts is seeing a surge in foreclosures this year, driven by rising interest rates and the lingering effects of pandemic-related delays. With mortgage rates climbing, many homeowners are feeling the squeeze. At the same time, delays in foreclosure processing during the pandemic have created a backlog, which is now contributing to a sharp increase in filings.

The numbers tell the story: foreclosure filings have jumped 30% in 2025, with FHA loans being hit particularly hard. Month-over-month, foreclosure starts have edged up by 0.8%, while year-over-year figures show a significant 16.1% increase. This volatile preforeclosure market is creating both hurdles and opportunities for investors.

For those looking to navigate this complex landscape, having access to accurate, real-time data is crucial. Tools like LeadList.Pro offer a competitive edge by delivering verified, up-to-date preforeclosure leads specifically tailored for Massachusetts, helping investors stay ahead in this shifting market. :::

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What are the best investment opportunities in Massachusetts' preforeclosure market, and which areas should investors prioritize in 2025?

Massachusetts' Preforeclosure Market in 2025

The preforeclosure market in Massachusetts is shaping up to be a promising area for investment, with foreclosure filings climbing by 30%. Cities like Boston, Cambridge, and Worcester are seeing increased activity, positioning them as key spots for investors to consider.

For those looking to make the most of this opportunity, targeting neighborhoods with higher foreclosure rates and steady market growth is a smart move. Preforeclosure properties, which are typically in this stage for 90 to 150 days, often come with price tags below market value. Additionally, areas struggling with FHA loan challenges or experiencing a surge in foreclosure notices could offer an advantage for investors aiming to acquire properties at more competitive prices.

Keeping a close eye on the latest foreclosure data and market trends is crucial. Staying informed ensures you can spot opportunities early and make well-thought-out investment decisions. :::

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How does the decline in zombie properties impact neighborhood stability and investment opportunities in Massachusetts?

The 13% drop in zombie properties across Massachusetts points to encouraging progress for neighborhoods and the real estate market. With fewer abandoned homes, communities benefit from higher property values, lower crime rates, and an enhanced sense of safety and stability.

For real estate investors, this shift is a sign of a more stable market with reduced risks. Although some zombie properties remain and may pose challenges, the overall decline suggests market recovery and growing confidence among investors in Massachusetts. :::