Jump to Navigation

Good or bad news? Experts debate foreclosure rate drop

Rates of foreclosure in the Washington, D.C., and Maryland areas have dropped precipitously in recent months. Experts in the area report a marked decline in the number of foreclosure filings and sales, which they attribute to the Saving D.C. Homes from Foreclosure Act. Many real estate professionals are concerned about this particular piece of legislation, though, because they think it is slowing the housing market's already sluggish recovery.

The law essentially puts restrictions on foreclosures that are designed to allow homeowners to continue living in properties with past-due mortgages. However, many of those homeowners are not catching up on their payments, and real estate experts say the act may have simply delayed the inevitable instead of fixing the root problem.

Experts say that foreclosed homes harm the housing market because they provide an influx of extraordinarily inexpensive homes in desirable neighborhoods. As a result, nearby property values drop. Although delaying foreclosures may have helped some families, others are now suffering because the value of their property has rapidly dropped.

Other gurus say the foreclosure slow-down is an excellent opportunity for young families and real estate investors. With home prices at an unprecedented low in some areas, buyers may be able to snatch up marketable properties, providing a dynamic and exciting real estate market. Indeed, this appears to be a buyers' market, with foreclosures dropping 21 percent since December 2011 in the region.

It is important to examine all of your options before you enter a foreclosure proceeding. Consider a short sale, which could allow you to sell your home back to the bank with minimal losses. This process is faster and more beneficial for homeowners and lenders alike, according to industry experts. Foreclosure is a nerve-wracking and unpleasant process, but recent regional numbers show that you do not have to fall victim to eviction from your home.

Source: The Washington Times, "Foreclosure delays: D.C., Maryland keeping homes but losing value," Tim Devaney, Feb. 18, 2013.

No Comments

Leave a comment
Comment Information
Start Right Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Visit Our Bankruptcy Law Website Subscribe to This Blog's Feed
Office Locations

1115 Massachusetts Ave NW,
Washington, DC 20005
Phone: 202-559-1428

10512 Pohick Court,
Fairfax Station, VA 22039
Phone: 703-550-7030

6926 Seven Locks Road,
Cabin John, MD 20818
Phone: 301-890-4500

Toll-Free: 877-441-4076
Fax: 202-638-5858

Twitter link