Md. Leads Nation in New Foreclosure Filings

National settlement prompted a flood of new cases

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    NEWSLETTERS

    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.