In 2008, the state of Maryland passed a law that lengthened the amount of time a bank had to wait before initiating foreclosure proceedings. The purpose of this legislation was to give homeowners more time to save their homes by seeking counseling, attempting a short sale, getting a loan modification, etc.
The law caused foreclosure proceedings to move at a crawl in a state where such proceedings were already slower than the national average, due to the fact that Maryland is a judicial state. Lenders were required to wait 90 days after default before filing the foreclosure action, and to send a Uniform Notice of Intent to Foreclose to the homeowner 45 days prior to filing an action. Such mandates caused foreclosure activity to fall by 16 percent in the first three months alone.
As a result of this 2008 legislation, Maryland’s current foreclosure inventory accounts for 4.1 percent of all mortgaged homes in the state. This reflects a 1.8 percent increase in the past 12 months.
Banks are now gearing up to begin releasing these “frozen foreclosures” which have been frustrating real estate investors in Maryland for quite some time. With inventory at a record low, the market is primed for some supply to quench buyers’ demand. Investors account for the purchase of about 20 percent of all existing homes. Needless to say, they are extremely anxious for some new inventory to hit the market.
If you would like to be the first to hear about these foreclosures in Montgomery County, MD as soon as they become available, contact Emcee Arah of DeeCee Real Estate online or call 301.452.5252. Emcee is both a Certified Investor Agent Specialist (CIAS) and a Certified Distressed Property Expert (CDPE).
A CIAS is uniquely qualified to find, create, and close with residential real estate investors using the knowledge and innovative tools earned through comprehensive education and experience. CIAS-designated agents can streamline the process of real estate investment to increase returns for investor clients by helping real estate investors navigate:
- Investment Strategies
- Self-directed IRAs
- 1031 Exchange
- Leverage Options
- Key Calculations
- Return-on-Investment
- Capitalization Rate
- Average Returns
- Cash Flow
- And much more
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