Although statistics suggest that worst of the foreclosure crisis has hit its peak, there exist certain trends that show other distresses will persist for years. In the State of Maryland in 2009, one in every 54 homes were in some stage of foreclosure totaling 43,248 units. In 2008 a little less, 32,347 home were on the bloc. Although this represents a significant 33.7 % spike in totals, the rate of increase is actually slowing, according to the Daily Record Business Writer. Maryland followed the national trends with a vast majority of foreclosure sales hitting the market in 2007 and 2008.
More alarmingly, however, month-to-month increase in foreclosures, 6,370 in November to 6,768 in December, reveal a trend that these defaults reflect households where breadwinners have lost their jobs. These defaults have already jumped by one third!
These trends are alarming because the loans now in default are A paper loans, typically with fixed interest rates, being paid by responsible borrowers whom have unfortunately lost employment.
Unless employment improves soon, the housing market recovery will be short to take a very long while.
As more and more foreclosed homes hit the market, this will inevitably drive up supply, thus decreasing home values further.
If you find yourself in a foreclosure situation and have exhausted every other remedy available, do not forget that filing a Chapter 13 Bankruptcy can provide you with an opportunity to help you keep your home.