Why Massachusetts and New Hampshire Foreclosures Are on the Rise in 2025

By Chris Doherty

Christian Doherty lists and sells more homes than any other agent in the Greater Lowell, Massachusetts market with over 300 homes sold in the past 12 months. Chris is ranked in the top 1% of all agents in the United States.

Are foreclosures on the rise? Foreclosures are increasing in Massachusetts and New Hampshire, with filings of foreclosure notices up by 30%. There are noticeable challenges with FHA (Federal Housing Administration) loans, where foreclosure notices are rising. However, not many of these properties or bank loans are actually hitting the market.

Understanding the process. If you’re an investor, an owner struggling with payments, or a homeowner wondering how this impacts you, here’s what you need to know: when a mortgage payment is late for a period of time, the bank files a public notice. This filing becomes public information and signals a pre-foreclosure stage. However, it still takes time before an actual foreclosure occurs. The rise in early notices is largely due to high interest rates and general financial struggles people face.

Backlog and delays. 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.

If you search multiple listings in Massachusetts and northern New Hampshire, you’ll find very few short sales and only a small number of bank-owned loans. This is because the foreclosure process takes time, and homeowners often have a chance to cure the situation before losing the property.

Advice for struggling homeowners. If you’re having trouble making payments, do not hide from the situation. Contact your bank to renegotiate loan terms; banks often want to help keep homeowners in their homes. You can also reach out to a real estate agent, as the increased equity in homes today may allow you to sell your property without issue.

Opportunities for investors. Investors can explore opportunities by approaching homeowners in pre-foreclosure to discuss possible deals before the auction. There’s potential to structure agreements before the auction process. But remember, participating in auctions requires cash and the ability to close within 30 days. Additionally, investors usually must accept existing tenants.

Current market outlook. For homeowners worried about the foreclosure news, the current impact in Massachusetts and New Hampshire is limited. Inventory remains low, and it’s still a seller’s market. A significant increase in bank-owned properties hitting the market would be needed to change.

The market shows signs of strength, but it’s important to stay informed, especially about foreclosures. If you have any questions, don’t hesitate to call me at 978-746-0124 or send an email to chris@dohertyproperties.com. I’m happy to help.