It has been a hard few years for many Maryland residents. After the housing bubble burst in 2008, many residents found themselves with mortgage payments that were way more than they could afford. However, they were no longer able to sell their houses for more than they owed, since home values plummeted at the time too. In many cases, banks started foreclosure proceedings and took possession of the house. As a result, many Maryland families lost their homes.
While the economy has turned around slightly since 2008, the foreclosure rate in Maryland is still quite high at 1.57 percent in 2013. In fact, this makes Maryland fourth in the nation for the number of foreclosures. In 2013, judicial backlogs in foreclosures were finally addressed, which led to a huge increase in the number of foreclosures within the state. According to a recent report, the number of foreclosures jumped by 117 percent last year.
These are difficult statistics for many Maryland families to read, especially those who are having mortgage issues. However, those people who are having a difficult time paying their mortgage should know that they have legal options that can help them stop a foreclosure.
In some cases, a short sale can help families sell their house when it is underwater. In other cases, a personal bankruptcy might be the best option. A bankruptcy can allow families to get rid of other debt and free up money to pay the mortgage. The right answer for each family will depend on the facts in each case. However, everyone should know that they do not have to lose their family home without a fight. Speak to a Gaithersburg Maryland Bankruptcy Court Lawyer to find out your options to avoid foreclosure.
Source: Baltimore Business Journal, “Maryland foreclosures surged 117 percent in 2013,” Kevin Litten, Jan. 16, 2014