There were more than twice as many foreclosures in Prince George’s County — 4,187 — during the first nine months of 2007 as in any other Maryland county.
As the trend accelerated through October and November, there was little sign of a quick turnaround. The county has been touting its soaring property values, up 51.6 percent in the most recent assessment. According to data compiled by Irvine, Calif.-based RealtyTrac., neighboring Montgomery County saw 1,971 foreclosures; the city of Baltimore saw 1,966. In October and November, Prince George’s added 1,817 more foreclosures, bringing its total to 6,004 for the first 11 months of 2007, or about 3 percent of the county’s approximately 185,000 mortgaged homes.
The county isn’t alone in its troubles: Nationwide, foreclosures continue to rise as low “teaser” rates reset at higher market rates, pushing many buyers into financial crisis.
Despite the high number, county officials remain optimistic, focusing on the majority of residents making their mortgage payments and benefitting from climbing property values.
“Think about the number of homes mortgaged over the past 10 years, and these foreclosures are small in comparison,” said James Keary, spokesman for County Executive Jack Johnson.
Prince George’s treasury chief Stan Willis believes the county’s relatively modest housing prices are an asset when it comes to dealing with the foreclosure boom. “Most of the home prices in Prince George’s were not overinflated.”
John Finnessy, a vice president of Baltimore’s Great Oaks Lending Partners, expressed optimism for potential homebuyers in search of a deal, but worried many of Prince George’s properties are listed above the $417,650 limit under which persons with poor credit can find favorable financing opportunities.
“My concern with Prince George’s is that with so many homes above the [limit], not only do you have strain from the market, but you have a market that doesn’t have appropriate financial tools available to make [home buying] happen.”
