According to the Associated Press, the number of U.S. homes entering the foreclosure process fell in January to a level not seen since the peak of the housing boom.
The number of homes entering into the foreclosure process declined 28 percent nationally last month from January 2012.
The last time fewer homes entered the foreclosure process in a single month was June 2006, the AP reported. The decline has been attributed to various state laws that have been passed nationally that help stave off or delay the foreclosure process.
The good news may not last for long though—some industry experts are predicting a “boomerang effect”.
“Unfortunately, down the road, we usually see a boomerang effect as some of those delayed foreclosures come back and actually end up being foreclosed-upon,” Daren Blomquist of RealtyTrac told the AP.
Blomquist predicted that another dip could happen at the end of the year or early 2014.
The positive news did not cross over into Maryland. More than 17,126 Maryland housing units had foreclosure filings during 2012, an 18.7 percent increase from 2011, according to the Baltimore Business Journal (BBJ).
Homeowners should know that they could save their property through Chapter 13 bankruptcy, which generates an automatic stay that will stop foreclosure.
A Chapter 13 bankruptcy also affords homeowners the opportunity catch up on past due property taxes and mortgage payments, as you enter into a repayment plan that can last anywhere from three to five years
Law Firm of Kevin D. Judd