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Foreclosure Rate Drops in Maryland Suburbs

Housing officials attribute change to new state law

Wednesday, Jul 29, 2009 | Updated 9:36 AM EDT

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Foreclosure Rate Drops in Maryland Suburbs

AP Photo/Rich Pedroncelli

Foreclosures are down in Maryland's D.C. suburbs.

The number of foreclosures in Maryland's Washington suburbs has declined, and it's likely because of a new state law, officials said.

Lenders now have to wait 90 days after a homeowner initially defaults before foreclosure proceedings can begin. That time period used to be only two weeks. Since the new law took effect, the foreclosure rate has substantially dropped, housing officials said.

In Prince George's County, the number of foreclosures dropped 13.8 percent from the first quarter of 2008 to the second quarter, according to the Washington Examiner. Meanwhile, Montgomery County saw a 20 percent decline.