Local foreclosures up in 2008

SPRINGFIELD, Mass. (WWLP) - New numbers reveal that foreclosures are up across Western Massachusetts. The state's foreclosure rate has surged to 62.4%

The Register of Deeds, Donald Ashe, tells 22 News that the problem started when banks began issuing adjustable mortgage rates. When the rates increased, many families could not afford the higher monthly payments. Then, unemployment rose, pushing the country even further into a recession.

According to the Warren Group, the number of foreclosures in Hampden County rose 42.72%. In Hampshire County, they were up 36.84%. The highest percentage of foreclosures in Western Massachusetts was in Franklin County which saw the rate of foreclosure climb to 45.90%.

In addition to foreclosures, the amount of money spent on real estate in Hampden County declined 33%.

Ashe blames this housing crisis on the lack of consumer confidence and unemployment.