Frederick Foreclosures Continue Unabated - I

May 26th, 2008

The year 2006 witnessed about 455 foreclosures being filed in Frederick County Circuit Court. The number has however reached twice that of what it was in the current year. April has seen that the number has already reached 485 and financial experts predict a much higher rise in the months to come. At this rate, foreclosure numbers are going to double very soon!

The foreclosures this year have in fact included a $219,000 townhouse in Hillcrest Orchards and $650,000 in single-family homes all across the quarter-acre lots in Villages of Urbana. The foreclosure problem, it seems, has come to affect people all across the nation in all layers of economic growth. The entire spectrum of housing work from construction workers to white collar employees, all seem to have been suffering the tolling affect of foreclosures.

The situation has also brought about loss of jobs and predatory lending work. According to Joe Baldi, a former mortgage agent and also an alderman of Frederick, there are just too many causes for the high rate of foreclosures, but the solutions are really not being paid attention to by the government. Joe now works as a housing counselor within the Frederick Community Action Agency. As an effect of the high rise in foreclosures, many people are being caught within a triple whammy by not being able to pay their mortgage in time, not being able to sell even parts of their property, and also with the passage of time, their homes are becoming worth less than the original price it was purchased at. In certain parts of the County, the high-interest loans have made up for over one-third of the initial mortgages on single family homes, all of which were issued in 2006. This report has been prepared by the Home Mortgage Disclosure Act Data.

The high interest rate loans are defined as those having an annual percentage rate of 3% or higher than the rate on Treasury bonds of such comparable maturity rates. Areas having the greatest concentric circles of those loans are those that have both sides of the Golden Mile in the City of Frederick and also the western part of U.S.

These areas have been predicted to reach the highest number of foreclosures in 2008. Some of these types of adjustable rate loans arrive with a two to three year period rates reset. People with these loan rates are just starting to come up with their kinds of readjustments. In some of these cases the mortgage rates have really been like a rip off to the loaners pushing them to near breaking points.