Foreclosure Numbers Fall But Mortgage Troubles Persist

Filed under: Foreclosure | 19th September

The paradox is that although foreclosure numbers are falling the mortgage troubles are persisting. During the second quarter foreclosures fell by 10% in Charles County. But according to Maryland Department of Housing and Community Development, the residents continue to be troubled by a lot of mortgage related problems.

Foreclosures in Maryland The fall of Charles foreclosures in the second quarter from the first one of this current year mimes a trend elsewhere. This is mainly due to changes in state law. The grace period has been extended allowing for time before the foreclosure comes into effect. Nevertheless in comparison to the figures of the second quarter of 2007 this year the numbers had increased by a double jump.

Charles County was responsible for 4% of all the foreclosures in the state during the second quarter of 2008. The population ratio is 2.5%. In the county most of the foreclosures are concentrated in the Waldorf region.

La-Ronda Johnson of Southern Maryland Tri-County Community Action Committee comments that there may be a tiny decline in the number of people seeking help but it is hardly noticeable and from it one cannot say that ‘the problem is getting fixed.’ Most of her clients are from the counties of Calvert and St. Mary’s. In the worst affected regions of Waldorf in Charles County the rate is as bad as 1:77. The Southern Maryland Tri-County Action Committee is the only of its kind in the region that is non-governmental. It handles about 40 foreclosure advice seekers per week with two counselors. With work pressure increasing it is hiring another staff.

Many pundits offer many theories as to why Charles County has been one of the focus areas of foreclosure operations. Some say that outside investors coming from Washington have invested here by taking on mortgages disproportionate to their capabilities and need. Johnson said ‘some people are trying to keep up with the Joneses, and they get into trouble.’

In Prince George’s County 32% of all the foreclosure postings are from Maryland. There were a good number of foreclosure listings also from Montgomery and Baltimore Counties. In St. Mary’s and Calvert Counties the foreclosure numbers are in proportion to the number of residents although here too a significant jump is noticeable.

Rising foreclosures means less taxes for the authorities and this is amounting to serious administrative problems due to lack of funds.