Maryland is one of the wealthiest states in the union. Its close proximity to the nation’s capital, D.C. was once a part of Maryland, puts the state in the direct line of billions of dollars the federal government spends every year. Maryland was even recently named the U.S. state with the most millionaires per capita, beating out states like Connecticut and New Jersey. It may seem strange, then, that Maryland is currently undergoing a historic rate of property foreclosures. In fact, recent statistics peg Maryland as number 3 in the top 10 states for foreclosures for 2013.
While most of the country saw a decreasing number of foreclosures in 2013 when compared with 2012, Maryland was in the midst of a 117 percent increase. The jump was the result of 17 months of steady increases in foreclosures in the state. Much of the foreclosure activity is being attributed to the end of a temporary moratorium on foreclosures in the state, which served to delay the foreclosure tidal wave that Maryland is seeing now. The foreclosure activity has had a real effect in the state. Homeowners and foreclosure auctioneers alike lament that the increased foreclosures negatively affect home values, partially because foreclosures are frequently left in disrepair when the previous owners finally move.
Though the flood of foreclosed properties may be bad for some, it is creating a major investment opportunity for those looking to purchase properties under market value. Though many of the properties require repairs, the level of investment required to prepare a home for sale or move-in may be as little as easily manageable cosmetic updates. With mortgage rates still at historic lows, and no shortage of cheap properties from which to choose, the state of Maryland can only hope that the foreclosures are rapidly purchased, repaired, and occupied in the shortest time possible.
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