According to the Baltimore Business Journal, Maryland ranked fourth in the nation in the rate of home foreclosures in August, with a 24 percent rise in new filings from August 2012. For more than a year now, foreclosure rate numbers in Maryland have been in the top 10 in the nation.
The BBJ reported that the foreclosures are not a sign of a downward economy in the state; rather, many of the homes entered the foreclosure process several years ago but were delayed due to Maryland entering a court settlement with mortgage lenders.
In July, the Baltimore Sun reported that more than $15 million in payouts were sent to Maryland residents who submitted a valid claim through the National Mortgage Settlement after 49 state attorneys general entered into a settlement with lenders Wells Fargo, Bank of America, Citigroup, JPMorgan Chase and Ally Financial last year. The settlement stemmed from allegations of abusive servicing and illegal document signings.
“The elevated level of foreclosure activity is due to severely delinquent loans which had been held back primarily because of servicer processing issues and have been moving through the foreclosure process at an increasing pace since the beginning of 2013,” the Maryland Department of Housing and Community Development said in a statement.
The BBJ said that while foreclosure rate numbers are rising, so are home prices, which are at their highest level in five years with a median home price of $252,000. It also reported that the foreclosure rate did improve slightly from 16.7 foreclosures per 10,000 homes in July, to 16.4 per 10,000 homes in August. In July, Maryland had the second highest foreclosure rate in the country.
If you are facing the threat of foreclosure, you should be aware that reorganizing your debt by filing for bankruptcy could help you save your home. During a Chapter 13 bankruptcy, a person can enter into a repayment plan lasting between three to five years. If you have a mortgage, this can give you time to pay off your debt, as an automatic stay goes into effect that prevents a lender from taking actions against you to collect debts.
Another positive thing about Chapter 13 bankruptcy is that it can provide debtors a chance at a lien strip, which eliminates “junior mortgages”—these are second or third mortgages that can be discharged through your case. It also gives people an opportunity to catch up on past due property taxes.
If you are struggling with debts and facing the threat of foreclosure, you can contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation. Our attorney wants to help you save your home.
Law Firm of Kevin D. Judd– Maryland and Washington DC bankruptcy attorney
Judd’s Judgment: Nevada currently has the highest foreclosure rate in the country.