After a state law was enacted, and only for a few months, Maryland’s foreclosure numbers looked a little healthier.
But at the cusp of what economists expect to be another tough year, local Realtors said foreclosures were on the rise once again.
“There was a lull … between July and late October, early November. We didn’t see as many coming into the pipeline, and we’re feeling that now,” said David McIlvaine, a Realtor with Keller Williams Realty in Ellicott City who specializes in foreclosure sales.
That “lull” was caused at least in part by a state law that went into effect earlier this year lengthening the foreclosure process from 15 days to approximately 150 days. McIlvaine said that increase roughly tracks with the dip in foreclosures.
According to data gathered by online foreclosure marketplace RealtyTrac — the same numbers state officials use to track the trend — foreclosure events statewide were up 10 percent in November from a year ago, compared with a 343 percent year-over-year increase in March. The data include default notices, auction notices and bank repossessions.
At a presentation of Maryland foreclosure data earlier this month, Deputy Commissioner of Financial Regulation Mark Kaufman said the decline might be “temporary,” but that extra time could be a key factor to keeping borrowers in their homes.
McIlvaine said he expected a mild uptick in foreclosures through the first half of next year and a slow recovery for residential housing.
“The hidden factor … is what kind of role will the government play, what kind of card will they play,” he said. “If [mortgage] rates drop between 4.5 and 5 percent, things will pick up.”
