Over the past year, the number of foreclosed homes in MD (Maryland) has grown exponentially. According to BankRate, Maryland has the fourth highest foreclosure rate in the country. On average for the state, one in every 609 homes received a foreclosure filing. Nationally, this number is one in every 1,019 homes.
Foreclosed Homes in MD – the Good and the Bad
Good: The foreclosure numbers in Maryland are a bit out of proportion to the rest of the country. This is because of regulations passed by the state of Maryland in 2010 that delayed the foreclosure process. The new laws are designed to help banks could work out agreements with borrowers to help them get back on track with their mortgages.
While the numbers are bad, the Maryland real estate market is still coming back from the housing market recession that started in 2008.
Bad: The state has now created a logjam. Since the bank was forced to push many foreclosures off to a later date, Maryland is now facing a rush of foreclosures as the rest of the nation’s foreclosure rate declines. The challenge is that the state allows foreclosures to last longer, which means a slower recovery period.
What Does This Mean for Buyers and Sellers?
Buyers will find that the increased number of foreclosed properties coming on the market will increase their ability to purchase properties at reasonable rates. Instead of worrying about dramatically rising prices, they can still buy bargain basement foreclosures.
Sellers are a little different in this respect, because there are two different types of sellers. First, you have the foreclosed homeowners who are forced to either sell their property, or let the bank take it back from them. Second, you have homeowners who want to sell their home for traditional reasons.
Foreclosed homeowners will want to get out of their homes without a foreclosure suit. To do that, they need options like cash buyers from Express Homebuyers. These cash buyers provide an alternative to going through the foreclosure process. A way out of what is turning into a 600 day, 3 year march to foreclosure. Otherwise, owning foreclosed homes in MD can be a bit daunting, when you consider how long a homeowner will be put through the wringer.