Maryland Unemployment & Foreclosures

The upset Maryland homeowners are facing a huge number of foreclosures in nearly a year and a half as state officials and observers worry that a new wave of foreclosures is about to slam the state’s already-struggling economy, mainly due to the increasing unemployment.

According to the state’s statistics, August 2009 foreclosure filings in the state were up nearly 70 percent over August 2008, and up 6.6 percent compared July 2009, as released by Irvine, Calif, a RealtyTrac Inc. company that tracks foreclosure filings nationwide. It is the fifth consecutive monthly increase in the year-over-year foreclosure rate. In August there were 5,491 Maryland homes in some stage of the foreclosure process, the most since April 2008, when there were 6,011.

Back then, the state’s housing market was so slammed with delinquent mortgages and distressed homeowners that lawmakers rushed through an emergency statute to delay the foreclosure process and allow homeowners to renegotiate the terms of their loans.

Loan modification has not been fully obtained in the state, and it may sound one big reason for the whole situation.

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