Second Wave of Foreclosures in Maryland

By
Real Estate Agent with Realty Group Referrals 16766
https://activerain.com/droplet/Zxp

Second Wave of Foreclosures in Maryland

 

The long expected second wave of real estate foreclosures has begun to arrive in Maryland.  Many lenders were forced to delay foreclosure proceedings since 2010 while documentation errors were corrected. That backlog is now increasing the foreclosure filings. Maryland is one of the states that require court approval for foreclosures and the process led to long delays.

Even though mortgage delinquency rates are still higher than normal in Maryland, it appears that the surge in foreclosures volume relates more to long delayed actions than to current filings. Although the markets in some communities are negatively impacted by vacant and neglected foreclosures, real estate investors are anxious to take advantage of investment opportunities in the inventory of lender owned foreclosures. Long delays will be obvious in the poor physical condition of many of the properties coming to the market.

In Montgomery County, there is a shortage of available listings and prices have been rising.  Home buyers and real estate investors need to be well prepared for the current market conditions, many real estate professionals are confident that available foreclosures will be quickly absorbed.

Some of the other counties in Maryland will be more severely impacted by this new wave of foreclosures. Smart buyers will want to have the advice of a local real estate professional that really known the market.

Please contact us for information on available foreclosures in communities of interest. Home buyers that are interested in fix-up properties should make sure that purchase funds will be available in cash or by renovation financing.  In Montgomery County, the FHA 203(k) renovation financing is a popular option that allows the cost of the repairs and improvements to be included in the mortgage.

 

 

Kentlands, Flowers IMG_9313

Photograph by Roy Kelley using a Canon PowerShot G11 camera. 

Roy and Dolores Kelley Photographs

Posted by

Roy and Dolores Kelley Photographs

Roy Kelley and Associates

 

Roy Kelley, Associate Broker

Realty Group Referrals (Retired from RE/MAX Realty Group)

6 Montgomery Village Ave., Suite 200

Gaithersburg, MD 20879

Main Office:  301-258-7757 (You will not reach me at this number)

Send an email message if you need my phone numbers. I will be happy to recommend a real estate professional if you are moving to the area.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Industry
Location:
Maryland Montgomery County Gaithersburg Kentlands
Groups:
EXPRESS WITH PHOTOGRAPHS AT ACTIVERAIN
Photos
Tags:
foreclosures
roy and dolores kelley photographs

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,496,407
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Same here: foreclosed properties are few and between. I see a lot of repossessed properties, but they are just there...it is weird, since it is almost the end of the summer and they don't release them. 

Aug 11, 2013 08:20 AM #14
Ambassador
2,302,371
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Hi Roy, Great feature.  This is very helpful information for folks wondering about foreclosures.

Aug 11, 2013 08:44 AM #15
Rainmaker
426,839
Mitch Muller - Charlotte NC Real Estate
ProStead Realty Charlotte, NC CRS SRES mitch@prostead.com - Charlotte, NC
Certified Residential Specialist

Roy, Ive been hearing about this shadow inventory for about 5 years now, but haven't seen it yet here.

Aug 11, 2013 09:14 AM #16
Rainmaker
922,313
Ginger Harper
Coldwell Banker Sea Coast Advantage - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

I have not seen the increase here yet..Still waiting..

Aug 11, 2013 09:17 AM #17
Rainmaker
5,428,664
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

We have a very low inventory of lender owned foreclosures in Montgomery County, Maryland. They tend to sell quickly. I will post some market reports during this week.

Some parts of Maryland are seeing foreclosure hot spots. Unfortunately, there are some economically depressed areas in the state. 

 

Kentlands, Flowers IMG_9306

Photograph by Roy Kelley using a Canon PowerShot G11 camera.

Roy and Dolores Kelley Photographs

Aug 11, 2013 10:14 AM #18
Rainmaker
977,118
Aaron Hofmann
Atlanta Communities - Smyrna, GA
aka Mr. Smyrna Vinings
Interesting. It's so easy to foreclose in Georgia there definitely wasn't a backlog. With that said we've always been a leader in foreclosures even before the downturn. Certainly when it's harder, the lenders are incentivized to work with the owners a bit more.
Aug 11, 2013 10:51 AM #19
Rainmaker
843,553
Barbara Altieri
Kinard Realty Group - RealtyQuest Team, Fairfield and New Haven County CT Real Estate - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale
Roy -- Good point on the 203k financing as these homes have been siting and there's plenty of deferred maintenance to deal with.
Aug 11, 2013 11:10 AM #20
Rainmaker
542,771
Brian Sharkey
SharkeyRE LLC - Port St Lucie, FL
SharkeyRE - #SouthFloridaBroker

As always I stop by to stop and smell the roses.

Aug 11, 2013 11:47 AM #21
Rainer
68,243
Allen Lomax
Steed Talker Realty is with two hours of Tryon International Equestrian Center and we offer the best properties in th... - Sylva, NC
WNC Mountain Homes & Horse Farms Specialists

The foreclosures in our area are still being auctioned at above market prices.  Still little to no interest in foreclosure auctions but lenders keep hoping as they bring their REOs on to the market at above market prices.  The REOs eventually sell but they usually linger  on the market for several months until the lender has dropped the price sufficiently low enough to attract a buyer. 

Aug 11, 2013 12:03 PM #22
Rainer
317,244
Jimmy Faulkner
Florida. Homes Realty & Mortgage - Wantagh, NY
The Best Of St. Augustine

Roy, we have been waiting for the increase in forclosures in New York and Florida. I think that it is more than coincedence. Something is wrongs with the system being run by the government. When the  Government runs things you can only get the worst.  I quess that is what America wants.

Aug 11, 2013 12:36 PM #23
Rainmaker
1,502,305
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Roy, foreclosure listings don't represent the large portion of the market in FL, some are waiting for those to hit the market, we shall see! When and if they do come on the market, I personally don't expect list prices to be dramatically below fair market value.

Aug 11, 2013 02:57 PM #24
Rainmaker
375,566
Lloyd Binen
Certified Realty Services - Saratoga, CA
Silicon Valley Realtor since 1976; 408-373-4411

Roy, working with a knowledgeable local agent to purchase homes in the second wave of REOs is vital to a buyer's success.  CA has non-judicial foreclosures, we have Trustee Sales, so no backlog or second wave of REOs is expected.  

Aug 11, 2013 03:26 PM #25
Rainmaker
1,081,875
Gary Frimann, CRS, GRI
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

We have not seen foreclosures making a comeback.  It appears all the toxic stuff has worked its way through the system, at least in the SF Bay Area.

Aug 11, 2013 05:34 PM #26
Rainmaker
1,839,385
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

We still have far too many Short Sales and foreclosure filings have slightly increased .

Aug 11, 2013 09:14 PM #27
Rainmaker
1,238,046
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Foreclosures in our area that have been snapped up by flippers are now going on the market - except for apt-to-condo conversions where there is still an OVER abundance of units available

Aug 11, 2013 09:38 PM #28
Rainer
5,470
Donna Chorey
Re/Max Performance, Inc - Woodland Park, CO
Donna Chorey

 I have heard the same about the foreclosures coming back big-time.  However, they have eased off here in New Mexico.  But, I am informed by CDPE and other informed persons that there are millions of foreclosures out there and the lenders have been holding them back so as to not have a glut on the market.  I think we are still in for a big wave as you say.

 I am specializing in short sales and have closed 5 this year and have two more approved for closing. 

 

It is amazing to me that the homeowner just doesn't care and sits back and does nothing about getting out of the foreclosure situation.  Some even have equity and don't know what to do. 

What burns me the most is an investor who has collected the rent for two years without making his mortgage payments. The tenant doesn't have a clue that they are in foreclosure and the property management companies just keep sending the investor/homeowner the rent checks.  I had one incident where the homeowner came to the house and told the renter he was removing all the appliances.  The renter had just received notification from FreddieMAc that they now owned the house and was smart enough to tell the now foreclosed homeowner to get lost. 

Just do not understand why the lenders do not exercise the clause in the mortgage or deed of trust regarding rents. All they need is to pay attention to where the insurance premium is being mailed to and they know the property is not owner occupied.  Then contact the tenant and ask some questions about making payments to the lender instead of homeowner or property management company. 

Aug 11, 2013 11:07 PM #29
Rainmaker
750,320
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

I'm glad to to see this happening, I think too many people were ignoring this coming to market backlog of foreclosures, and prices were being artificially driven above market value due to limited inventory in some areas. We have a huge amount of vacant homes in VA as well that are just sitting and deteriorating while waiting to make to foreclosure and get put on the market.

Aug 11, 2013 11:08 PM #30
Ambassador
1,613,740
Harry F. D'Elia
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

I would start marketing to investors to start buying up foreclosures.

Aug 11, 2013 11:15 PM #31
Rainmaker
2,465,199
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Sounds like the long awaited death throe of foreclosures....let them pass quickly is all I can say

Aug 11, 2013 11:56 PM #32
Rainmaker
5,428,664
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

It is always good to receive your comments. Investors in our area are anxious for the opportunities to purchase properties to add to rental portfolios. 

 

Kentlands, Flowers IMG_9301

Photograph by Roy Kelley using a Canon PowerShot G11 camera.

 

Roy and Dolores Kelley Photographs

Aug 11, 2013 11:57 PM #33
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
5,428,664

Roy Kelley

Ask me a question
*
*
*
*
Spam prevention