The Realities of Foreclosure Numbers

foreclosure numbers

There is more to the realities of foreclosure homes numbers than is apparent. In this age of the Internet it is not difficult to collect and manage huge data. It can be arranged to suit myriad viewpoints.

It is a common practice to first formulate a theory and then go ahead to find out data that will fit in snugly with it. But to find out truth it is better to start in reverse gear and make the beginning with cold hard facts and then allow it to guide us like the needle of a compass. Truth seekers will hunt for the realities of real estate. Personal opinion should never be allowed to overtake the naked truth. If allowed it will not allow for proper introduction of remedial measures.

On 31st May one headline in the Capital shouted “County Foreclosures Triple in April.” It is a clear hint that Anne Arundel County is gasping in the jaws of housing problems and about to breathe its last. The writer of the news column adds, “…homeowners continue to be forced out of their homes at a rapid rate” and “…… the foreclosure crisis was most prevalent in Glen Burnie.”

The conclusions have been drawn from severely flawed data. When placed in proper order and not out of context the question of crisis does not arise.

For instance the chart showed a sudden fall in foreclosure numbers to 70 in April 2008. It was found on investigation that on 4th April a new foreclosure related law went into force in Maryland. This law stated that lenders would have to wait for 90 days from the defaulting date of the loan and then dispatch a Notice of Intent to foreclose. The actual foreclosing would start 45 days afterwards. Naturally the number of foreclosures fell with this legal imposition of 90 days moratorium. In consequence it seemed that compared to April 2008 the foreclosure numbers in April 2009 had tripled. But basically this comparison is faulty.

From January to March 2008 the total foreclosures were 658. In 2009 there was a drop with the numbers going down to 652. The truth that surfaces is that despite a turbulent real estate market and harsh economic days the number of foreclosed homes in Anne Arundel County is approximately the same as it was one year previously. Thus instead of crying wolf about a crisis it can be said that the numbers point to the inherent strength and stamina of the economy of the county.