Maryland Has Highest Foreclosure Rate in Nation
BALTIMORE (AP) - The rate of new foreclosure filings in Maryland topped that of any other state this spring.
The Baltimore Sun reports that the spike can be attributed in large part to a national settlement with the country's five largest mortgage servicers that led to a flood of new cases.
The settlement dealt with "robo-signing," with governments alleging that mortgage servicers had carelessly and illegally prepared foreclosure paperwork. Banks eased up on foreclosures while the case was pending, creating a logjam - especially in states like Maryland where foreclosure is a judicial matter.
The Washington-based Mortgage Bankers Association reported Thursday that almost 20 in every 1,000 home loans in Maryland went into foreclosure during April, May and June. That's twice the national average.