The Mortgage Bankers Association released a report last week that suggests an improvement in the mortgage crisis. In the first quarter of 2011, the number of Maryland homeowners in foreclosure or at least 30 days late in mortgage payments dropped nine percent from last year’s first quarter. In addition, the number of delinquent or foreclosed-upon loans has been shrinking over the last three quarters.
More good news from the report is that new Maryland foreclosure cases in the first quarter dropped 27 percent from 2010. A spokesperson for the Maryland Department of Housing and Community Development (DHCD) said the drop in foreclosure cases is the result of lenders willing to do loan modifications and payment plans with homeowners. The DHCD helps homeowners find housing counselors and administers the Emergency Mortgage Assistance Program, which provides two-year loans to homeowners out of work or burdened with high medical costs.
Despite the positive news, the report also showed that nationwide 4.8 million borrowers were at risk of losing their homes to foreclosure. In Maryland, 1 in 10 borrowers were 60 days late on loans in the first quarter of 2011. Compared with the first quarter of 2003 when only 1 in 30 Maryland homeowners were behind on mortgage payments.
If you are risking home foreclosure, contact a Maryland lawyer for bankruptcy information. An experienced Maryland bankruptcy attorney can tell you how the Chapter 13 or Chapter 7 process can help you get a fresh financial start.