Maryland Foreclosure Trend Reverses

One month hardly makes a trend reversal. (A single month drop could have been caused by something as simple as a key employee in one of the top six lenders being out on medical leave for two weeks.)

The new laws are not that clearly written. I suspect lenders are simply delaying filings in MD while their corporate attorneys make sure they do everything properly... (or ask the MD Attorney General what the legislature really meant by some sections!)

I've not heard of any lenders in Maryland foreclosing before 90 days, that would be pretty rare--why would they want to start the process early on upside down loans?

The previous notice period was 22 days, so homeowners only get three more weeks to figure something else out... Not much time if they haven't already thought about their options.

Lets wait to see what June and July numbers look like. Then we can talk about trend reversals!

PS: There's still a lot of outstanding 3 year ARMS from 2005-2006 (even 2007)... I expect those to fuel foreclosures through 2009, unfortunately, unless the lenders do some massive loan modifications in bulk. Those holding 5 year ARMs will hopefully be lucky enough to be able to refi at a breakeven price in 2010-2012, once market prices have stabilized...

GP of MD 3:36AM June 28, 2008