Jan. foreclosures near record high

In terms of home foreclosures, Scrooge took a holiday in December, but in January, he came back strong.

The state saw 352 foreclosure deeds in January, a record for that month and the second most ever, just seven behind the 359 of last October, according to statistics compiled by the New Hampshire Housing Finance Authority.

“This level of foreclosure activity may reflect the possible deferral by lenders of foreclosure proceedings during the holiday period, and it certainly offers evidence of the continued economic distress of many New Hampshire home owners,” according to the authority’s report, released Wednesday.

Banks frequently hold off on foreclosing homes until after the Christmas holiday season for logistical reasons as much as human kindness and decency, it seems.

Banks will hold off on foreclosing in December for two reasons: They’re hesitant to foreclose during the holidays, and December can be a tough month for scheduling, said Jane Law, director of communications for the New Hampshire Housing Finance Authority.

“That has happened in the past, particularly by some of the larger lenders,” Law said.

Hillsborough led New Hampshire counties, with nearly a third of all foreclosures statewide, according to the NHHFA.

Nashua recorded 25 foreclosures in January, second to Manchester’s 31, for the county, according to the Hillsborough County Registry of Deeds.

Locally, Merrimack and Milford had seven foreclosures each, Hudson six, Litchfield, Mont Vernon and New Ipswich two each, and Amherst, Greenville, Hollis, Lyndeborough and Wilton one each, according to the registry.

Statewide, foreclosures began skyrocketing in 2006 – the 79 recorded in January 2006 represented an increase of 295 percent over the previous January, according to NHHFA statistics.

That was because of the sub-prime lending crisis, which precipitated the 2007 recession, Law noted.

Sub-prime lending is a thing of the past, and “now it’s likely to be more economic issues that factor into foreclosures,” she said.

Not only layoffs, but a reduction in work hours can be enough to cause a family to fall behind on mortgage payments, Law said.

“If you’re just squeaking by, and you have your hours reduced, that can be enough to fall behind,” she said.

Nashua Realtor Paul LaFlamme said he handled two foreclosures in January, which he called a “heavy” number for one month.

And there might be more coming, said LaFlamme, whose business real-estate business includes short sales, a program to avoid foreclosure.

Some banks have approached LaFlamme to get his opinion on the market value of properties, an indication that the lenders might be preparing to take ownership of the properties, he said.

Patrick Meighan can be reached at 594-6518 or pmeighan@nashuatelegraph.com.