The New York Post. "The number of New Yorkers forced into foreclosure is skyrocketing, especially in Nassau County, where foreclosures have jumped a stunning 82 percent in the past year. According to RealtyTrac, the number of city foreclosures went up 15 percent in 2006 from the year before, while Long Island jumped 55 percent. The national rate surged by 42 percent."

"'People in general are living outside of their means,' said wealth manager J.J. Burns. 'This generation wants everything now. People are not saving for the rainy day.'"

"In the city, Staten Island led the pack with a 47 percent rise in foreclosures, usually initiated by banks when homeowners can't pay their mortgages. Foreclosures in Brooklyn and The Bronx rose about 25 percent each and Manhattan saw a 4 percent increase."

"Foreclosure increases are higher in the suburbs - Westchester jumped 44 percent, Suffolk County shot up 32 percent and Nassau County rose a shocking 82 percent."

The Boston Globe. "Petitions to foreclose on Massachusetts homeowners rose nearly 70 percent in 2006, and the number of distressed properties that went to auction increased 46 percent, a report said today."

"In Suffolk County, which includes Boston, petitions to foreclose jumped 79 percent in 2006, the report said. In 2006, mortgage lenders filed 18,926 petitions to foreclose, compared with 11,155 in 2005, the Warren Group said; lenders announced 6,729 foreclosure auctions in 2006, versus 4,620 in 2005."

"'As housing prices decline, people who had borrowed 90, 95, or even 100 percent of the value of their home now find themselves owing more than their homes are worth,' the Warren Group's chief executive, Timothy Warren Jr., said."

The Boston Herald. "Banks auctioned off nearly twice as many Boston homes for mortgage nonpayment during 2006 as they did in 2005, new figures show. The Warren Group reported yesterday that lenders advertised 1,007 foreclosure auctions in 2006 for Suffolk County, which primarily consists of Boston. That’s up from just 521 auctions in 2005. 'This certainly indicates a lot of pain for (Boston) residents,' Warren Group CEO Tim Warren said."

"Warren attributed the increased auction activity to 2006’s chilly housing market. He said that during the recent housing boom, people who got into financial trouble could easily refinance or sell properties and avoid foreclosure. But no more."

"'You can’t take out another home-equity loan when prices are falling, because there isn’t enough equity left to solve your problems,' Warren said."

"Advertised foreclosure auctions also rose sharply in other Eastern Massachusetts locales during 2006. Warren reported big gains for Middlesex County (up 58.2 percent), Bristol County (54.3 percent), Worcester County (53.8 percent) and Essex County (52.2 percent)."

The Telegram. "The decline in housing sales and prices followed a red-hot housing market in Massachusetts, when the median price of single-family homes had increased for 12 consecutive years. The booming housing market, combined with low interest rates, enticed many people to buy homes through attractive loan offers."

"When the housing market fell and interest rates went up, many homeowners were caught in the middle, said Barry Bluestone, dean of Northeastern University’s School of Social Science, Urban Affairs and Public Policy. 'There were significant numbers of people who were able to get mortgages who wouldn’t have qualified before,' said Bluestone."

The Standard Times from Massachusetts. "In New Bedford, there were 422 foreclosure petitions in 2006, a 128 percent increase from 2005, when there were 185."

"In explaining why more people are in danger of losing their homes, analysts and mortgage brokers pointed to a complex 'perfect storm' of factors. They cited rising interest rates that keep new lenders from entering the market and make it harder for current homeowners to sell. Meanwhile, home values and sales have been depreciating since 2005, leaving homeowners who signed adjustable rate mortgage agreements two years ago paying higher rates and stuck with houses they now cannot afford."

"Paul Matos, owner of SouthCoast Mortgage, said many homeowners who purchased houses from 2003 to 2005 expected to turn around and sell their houses for big profits. 'Everybody was thinking easy money,' he said. 'Everybody was buying houses. It was absolutely crazy. People were buying houses that were worth $35,000 (more) a year later, and all they did was mow the lawn.'"

"But when the housing market ground to a halt in late 2005, Mr. Matos said many homeowners were stuck with houses they obtained through adjustable-rate mortgage agreements that now have higher monthly payments. 'It happens when people get into adjustable rates,' he said. 'The market corrects, and you no longer have the equity.'"

"Eric Gedstad, a spokesman for a statewide affordable housing bank, pointed to what he labeled 'exotic' mortgage packages popular during the housing bubble. 'Several years ago when the housing market was strong, these products were more manageable. People could refinance them and get a new loan,' Mr. Gedstad said."

"'Now, we've got this perfect storm that is brewing in the mortgage industry and with home prices falling, people who took out these riskier mortgage loans can't escape them the way they used to,' Mr. Gedstad said."

"He noted one particular example — known as 'negative amortization,' that has come back to haunt thousands of homeowners. 'With a lot of these types of loans, a lot of people didn't know what they were getting into,' Mr. Gedstad said. "The mortgage loan process is very confusing. There is a lot of paperwork, and frankly, a lot of people don't read the fine print.'"

"Jeremy Shapiro, president of ForeclosuresMass.com, said many homeowners overextended themselves during the housing bubble. 'Homeowners looked at their options, and said, 'Heck, if I go for the adjustable rate, I'll have a bigger home,' Mr. Shapiro said."

The Eagle Tribune from Massachusetts. "Police Chief John Romero has launched an investigation into mortgage broker scams, focusing on the involvement of local lawyers who he says took 'under-the-table money' from home buyers who got duped into taking out loans they couldn't afford."

"'We are looking into a situation brought to us by members of the legal profession, which involves a few unscrupulous lawyers who were just out to make a quick buck,' Romero said."

"The 'kickbacks' Romero was referring to were checks totaling up to $20,000 written by the lender to the home buyer, which were immediately cashed and turned over to the broker and lawyer involved in the suspected scam. Those brokers and lawyers, police say, charged the fee to assist loan applicants with fudging financial information, like monthly income and expenses, so poor people could qualify for home loans."

"'These unscrupulous lawyers and mortgage brokers are finding people who in some cases are desperate to get a loan,' said police Detective Michael Simard. 'They switch them to a high-interest, hard-money loan. They claim it's only going to be for a short time, and it's not going to cost them a lot of money, when in reality, it does. When the loan is applied for through the lender, the mortgage broker and lawyer will overstate the needed amount. That's where their cash profit comes in.'"

"'Something that can only be described as a cash kickback is certainly severe and would raise eyebrows. You hear whispers about things like this, but it's a very hard thing to prove,' said Boston lawyer David L. Yas, publisher of Massachusetts Lawyers Weekly. 'For a lawyer to be collecting a kickback like this, it boggles the mind to think that's happening. As long as there is a nefarious sect of the bar of lawyers - which is a very small minority - there will be practices like this.'"

"'With all of the foreclosures going on in Lawrence right now, we're concerned about the potential for arson,' police Capt. Michael Driscoll said. 'A lot of the arson in the '90s was attributed to people who could no longer afford their properties and were looking for a way out. We don't want to return to that kind of situation.'"