The number of foreclosures in Maryland’s D.C. suburbs declined for the first time in almost two years between April and June 2008, but housing officials say the decrease stems from new state policies rather than market changes.
In Prince George’s County, the number of foreclosures dropped 13.8 percent, going from 3,310 to 2,853 from the first quarter of 2008 to the second quarter. Meanwhile, Montgomery County saw a 20 percent decline, going from 1644 to 1314 in the same time period.
State and local housing officials alike attribute the drop-off to changes made to state law: Lenders now have to wait 90 days after a homeowner initially defaults on a loan before foreclosure proceedings can begin. The homeowner gets another 45 days after the foreclosure begins before their home can be sold. The foreclosure period had been two weeks.
Montgomery County Council members are considering whether the county should require property owners or banks to notify renters within a certain timeline if a building is set to enter foreclosure.
“We need to do what we can as quickly as we can to make sure renters aren’t subject to things beyond their control,” Knapp said. “There are stories locally and nationally where people who’ve been paying their rent on time don’t even know their place is in foreclosure until they get an eviction notice.”
Montgomery housing officials told council members Monday that only one multiunit local building had entered the foreclosure process thus far, saying the Takoma Park property had four units, but only one renter had to be evicted.
Despite the decline from the first quarter, foreclosures in both counties are still far higher than during the same time period in 2007. Montgomery County had 117.2 percent more homes in foreclosure between April and June 2008, compared with the same three months in 2007. Prince George’s had 139.3 percent more.
