Maryland Foreclosures Continued to Plummet in 2011
State‘s Foreclosure Rate Now Ranks in the Bottom Tier in the Country

By PRESS OFFICER
DHCD

Maryland foreclosures last year hit the lowest level since the collapse of the national housing market in 2007, according to year-end data from RealtyTrac, and the state‘s foreclosure rate now ranks in the bottom tier in the country.

See the fourth quarter report.

There were 14,421 foreclosure events in Maryland last year, the California-based real estate monitoring firm reported. That’s compared to 42,446 events in 2010; 43,248 events in 2009; 32,338 events in 2008; and 18,879 events in 2007. In 2006, the last full year before the crisis struck, Maryland had 3,094 events. “Events” include notices of default, foreclosure sales and lender purchases, but individual households are not counted more than once in the data.

A significant factor in the fall in foreclosures has been the reforms enacted in Maryland under the leadership of Governor Martin O’Malley and Lt. Governor Anthony Brown. Before those reforms, foreclosures sped through the courts, sometimes taking as little as 15 days. Families found they had lost their home before they fully realized what was going on.

Today, the process takes an average of 634 days, one of the longest in the nation. New York ranks first with an average 1,019 days. The extra time gives financially beleaguered homeowners additional time to consult with foreclosure prevention counselor and attorneys to learn more about their options. Some analysts warn however that there may be a future upsurge as pent-up foreclosures work their way through the system.

On Jan. 12, the Maryland Foreclosure Task Force issued its final report recommending additional reforms, including tax incentives and the creation of a statewide registry that would help move foreclosed and vacant properties back onto the market quicker. The panel also urged lenders to adopt industry best practices, including greater use of loan modifications.

Visit DHCD’s MDHOPE website to learn more about the resources available to homeowners through programs such as foreclosure mediation and the HOPE Counseling Network. Since 2007, the network has helped more than 70,000 homeowners, achieving positive results in 92 percent of the cases completed.

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