There has been recent news that the rate of foreclosures has slowed and has leveled off. However, according to RealtyTrac, states like Maryland, Oregon, and New Jersey saw new foreclosure filings climb substantially. While at the same time, the number of U.S. properties with foreclosure filings declined 32% in July from a year earlier.
RealtyTrac believes that the reason there is a discrepancy is these states took aggressive measures to halt foreclosures when the housing crisis first struck. For example, Maryland’s government put forward an aggressive effort to make sure foreclosures were all handled properly during the crisis. As a result, it saved a lot of people’s homes but it also postponed a lot of inevitable foreclosures. It appears that now the Banks are slowly still getting the foreclosures. In contrast, Virginia’s government did not try to stop much of the foreclosure process. In 2008, Virginia had the 10th highest foreclosure rate in the nation, but now the market is back on its feet.
The level of foreclosure filings in Pennsylvania approached pre-housing crisis levels. California, Illinois, and Georgia had similar results, according to RealtyTrac.
The question is whether it was better to stop the foreclosures in 2008 or to get the market up and running sooner?
Julie D. Goldstein is an attorney with the law firm Fox Rothschild LLP. Julie practices in Fox Rothschild’s Warrington, PA office. You can reach Julie at 215-918-3558 or firstname.lastname@example.org