Find a foreclosed house for sale in Prince George’s County where 33 percent of foreclosures in Maryland in November occurred.
Despite comprising only ten percent of the total housing stock in Maryland, Prince George’s suffered more foreclosures than other Maryland counties like Baltimore and Montgomery because of the higher level of speculative investments and toxic residential mortgage loans in Prince George’s, based on statements from James Keary, spokesperson for Prince George’s County Housing and Community Development Department.
Keary explained that economic growth has been faster in Prince George’s than any other county in the Washington region, so the bad effects of fast growth were also more pronounced in Prince George’s.
Another factor for the higher foreclosure rate in Prince George’s is the predomination of exotic loans in the area, according to Keary. These loans had initial interest rates that were unrealistically low, enabling borrowers to pay only small amounts at the beginning and making them ignore the fact that their monthly payments would balloon sooner than they expect.
According to Jim Griffin, chief operating officer for HomeFree USA, the type of housing unit most likely to become a foreclosed house for sale is the one that was bought with a mortgage that adjusted every 6 months. With just two readjustments, the monthly home loan payment becomes completely out of reach for homeowners.
Real estate speculation also rose to record levels in Prince George’s County as home prices in the area doubled during the boom, prompting investors to buy properties and expect high returns from resales. During the boom, Prince George’s was second in level of home sales throughout Maryland.
In November, the pace of foreclosure in Maryland surged by nearly 84 percent from last year to one foreclosure for every 364 residential units, putting Maryland ninth in a ranking of U.S. states based on foreclosure activity.
A total of 6,370 households in the state were hit with notices of default and foreclosure, including 2,342 units that received lis pendens notices and 3,317 units that were hit with notices of trustee sale. More than 700 units were repossessed by lenders.
To prevent further increases in foreclosures, state legislators, nonprofits and government agencies launched programs to help homeowners. One of these is the expansion of the Mortgage Fraud Task Force, which was created to prevent deceptive loan marketing and predatory lending practices that contributed to the fast growth of foreclosed house for sale listings.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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