Foreclosures Reach For The Sky
In Maryland the number of properties ready to go in for foreclosure auction is three times that of what it was last year during the same month. House owners are in a sorry plight – unable to bear the burden of additional mortgage repayments and unable to raise funds by selling the property because of a falling market. Last month 1,730 foreclosure auction notices were issued. Last year the number was 550.
The foreclosure auctions are not bearing fruit either. Many are going back to the lenders. It was ten times more then last year. Except for few commercial units most of the houses are residential properties.
Foreclosures are raging right across the country with Maryland being worst hit. The numbers waiting to be auctioned off rose by 70% across the nation. Maryland is in the red with foreclosures on the rise in each and every corner of the state, opined Thomas E. Perez who is the secretary of labor, licensing and regulation of the state. With many other mortgages ready to reset for the higher notch, he is apprehensive that a further wave of foreclosures is waiting to hit the shores. No respite seems to be in sight.
The foreclosure crisis was triggered of by the housing boom being followed by sub-prime mortgage bonanza with teaser rates. It is having a snow balling effect with one thing leading to another. Lenders sitting on so many foreclosures are tightening credit belts and refinancing is not easy to avail. Borrowers are also to blame for eating more than they could chew. From the start they should not gone for unaffordable loans.
The foreclosure problem is the most acute in the regions where the housing boom was at its best – Nevada and Florida. Those witnessing an economic slump like Michigan and Ohio are also badly affected. The situation has made communities across the country come together to find a remedy.
Maryland has set up a task force and mulling over new laws to tackling the rising foreclosure menace. Unfortunately the housing aid centers are getting frustrated. Calls are piling up but there is very little they can effectively do. Loan terms cannot be easily altered. The Bush government has announced the formation of a coalition amongst the lending companies.
Foreclosures recorded a slight fall last month but most probably it is but the lull before another storm. Nobody is sure.
