The escalating situation for Maryland foreclosures has caught the attention of local lawmakers, who recently vowed to take steps to combat the surge in Maryland foreclosure homes after 7000 residents lost their homes to mortgage debt during the third quarter of 2007.

Many around the state are clamoring that the only way to stop the situation is to overhaul the laws regarding defaults on mortgages, payment schedules and foreclosure prevention. Maryland was hit hard by the adjustable rate mortgage crisis, and with more ARMs set to adjust in the new year, many see no end in sight to the problems with foreclosed homes the state faces.

Baltimore foreclosures are especially prevalent, as the state recently sued Wells Fargo bank on the claim that its lending policies were discriminatory to African-American borrowers.

Investing in foreclosure houses in Maryland at this point seems to have drawbacks and advantages. The advantages are that the foreclosure inventory is very high, which is driving down prices dramatically. Buyers are finding that homes available in populated areas such as Gaithersburg foreclosures, Fredericksburg foreclosures and Upper Marlboro foreclosures are carrying very low prices these days. Popular areas such as these also have the best chance to for the market to turn around and property values to once again rise. The same goes for Hagerstown foreclosures, which are also reaching very high levels.

Buying foreclosure real estate in Baltimore will provide very low prices, but will also carry the risk that things may get worse in the real estate market in this city before they get better. Judge carefully when buying foreclosed homes anywhere, but pay special attention to location and neighborhood desirability. These are key indicators of whether or not your purchase has the potential for higher value in the future.