Maryland State is in the mid-Atlantic region of USA. This was a section of the Chesapeake Colonies where tobacco cultivation dominated the scene. Maryland has the highest average household income of $68,080 according to survey undertaken in 2007. Yet into this rich state Maryland foreclosure homes are causing concern as these are gnawing into the socio-economic health of the state.
Maryland is hub for biotechnology firms and prestigious institutions like Johns Hopkins University, Human Genome Sciences and National Institute of Standards and Technology among many others. But microscopes and laboratories are failing to pinpoint the logistics of increase of Maryland foreclosure homes in this region of prosperity. This poses the question whether this very success story attracted a splurge in building activity that ended up with Maryland foreclosure homes?
Maryland is nicknamed ‘America in Miniature.’ Here there are sandy dunes with seagrass, marshlands wriggling with water snakes and huge bald cypress trees. Rolling hills and oak forests too make Maryland a picturesque haven. Into this variety has stepped in Maryland foreclosure homes dotting the scenery. The residential concentration is in the cities and its suburbs with the focus being on Washington DC and Baltimore. In 2000 there were about 67% Whites and 29% Blacks. The increase by 2005 has been 3.06% Whites and 9.89% Blacks.
While hunting for causes for increase in Maryland foreclosure homes, average income figures and demographics play an important part. From 2007 there has been a sharp increase in Maryland foreclosure homes, although the rate is less than the rest of the country. Maryland foreclosure homes have caused the market to be flooded with more supply than demand. This has led to a fall in price of houses. Many houses are worth less than the loan amount. As a result of this the owners of Maryland foreclosure homes are leaving the property and just walking away.
Maryland foreclosure homes have raised the foreclosure rate of the state and have risen by 150% from what it was a year ago as reported in April 2008 by the Mortgage Bankers Association. In June 2008 it is reported by RealtyTrac that the trend of increasing Maryland foreclosure homes had reversed. In April Maryland foreclosure homes had made it the 6th worst affected state in the country. In May the number of Maryland foreclosure homes dropped by 61% causing Maryland to improve in rankings and be placed 22nd. This fall has most probably been due to a new law enacted in Maryland that came into force in April allowing more breathing time to borrowers.