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