How does that saying go, again? The one Mark Twain attributed to Disraeli? Oh, yes, that’s it:
“There are three kinds of lies: lies, damned lies and statistics.”
The state of Maryland has a bone to pick over the third kind, specifically statistics from RealtyTrac about the state’s foreclosure activity. The real estate market analysis company publishes foreclosure data every month, and state officials are tired of having Maryland’s numbers misconstrued.
RealtyTrac recently reported that the number of foreclosures in the state increased 10 percent in October. That moved Maryland from fourth to third place — on the list of the worst states for foreclosures. What officials want RealtyTrac and everyone else to understand is that the numbers are just a part of the story.
First, it is important to remember that the robosigning scandal and other mortgage lender misdeeds prompted the courts to reject thousands of foreclosure filings. What RealtyTrac is reporting as an increase in foreclosures is actually new filings on old foreclosures. It is good news that the numbers are up, because that means the state is clearing the backlog.
Second, the data is overlooking the fact that nearby Virginia has had almost twice as many foreclosures as Maryland, even though it has just 25 percent more active mortgages. Third, the report does not talk about the success of state programs that have kept many people in their homes.
Moreover, home prices in Maryland have increased for 21 consecutive months. In October, prices were up 15.2 percent, putting the state ahead of neighboring states.
All of this and more was laid out in a four-page missive to RealtyTrac from the Maryland Secretary of Housing and Community Development and the commissioner of the Office of Financial Regulation. This is not the first time the state has tried to correct the record with RealtyTrac, but it is the first time two state officials have signed such a long defense of our housing market.
In truth, there are also new filings on new foreclosures, though perhaps not as many as there have been. Homeowners should remember that there are ways, including state programs and bankruptcy protection, to save their homes.
Source: Baltimore Business Journal, “Officials launch offensive to debunk foreclosure data that ranks Maryland third-worst in U.S.,” Kevin Litten, Nov. 14, 2013