Maryland faces growing foreclosures, bankruptcies
Maryland, like most other states in the country, saw record numbers of personal bankruptcy filings in 2005 prior to the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Action. While this law saved a good many homes then, it’s created a new problem now. One that many didn’t see coming.
The housing and mortgage crisis has hit Maryland with a vengeance. Foreclosures have risen 150% in the past year. Thousands have found themselves in a position where, because of their 2005 bankruptcy filing, they are unable to refinance their adjustable rate mortgage. When the rate resets they are now unable to pay their mortgage payments and are now facing foreclosure.
The Maryland state senate passed a bill which eliminated fast-track foreclosures, requiring upfront disclosure from lenders and lengthening the foreclosure period from 15 days to 90 days. But even these measures, most experts agree, won’t be enough to help the thousands of Maryland residents losing their homes.
Is it just about foreclosure?
After the 2005 bankruptcy law changes, Maryland saw bankruptcy filings spike then drop to all new lows. However, with foreclosures and housing spiraling out of control, bankruptcies are on the rise once more. Nor are mortgages a sole cause for financial worry. Many people find themselves facing financial disaster through no fault of their own, such as a job loss, sudden illness, or unexpected death. Medical expenses continue to rank as a top financial concern nationwide.
What can you do to stop foreclosure?
Whatever the cause, Maryland residents find themselves facing foreclosure and bankruptcy. Anyone considering bankruptcy as an option, or is facing foreclosure, should consult a qualified Maryland bankruptcy lawyer. Bankruptcy attorneys know the state and federal laws that govern exemptions and filings and help protect your home.
. 03 Jun 08 | Bankruptcy Articles
