Photo by Bill Green Auctioneer Michael D'Onofrio, with Alex Cooper Auctioneers, calls out bids for one of 10 foreclosure house sales on the auction block recently at the Frederick County Courthouse. None of the homes were sold.
	SUBPRIME LENDING & FORECLOSURES Homeowners around the nation are struggling to make mortgage payments, and Frederick County is no exception. The map below show the area with the lowest and highest concentration of subprime mortgage loans. Click the map for a larger image. SEARCHABLE DATABASE Search the list of foreclosures filed in Frederick County Circuit Court from Jan. 1 to March 18, 2008. BIZ BLOG Business editor Cliff Cumber blogs about the project. Click here to check out his blog. THE ECONOMY & ME This new online-only section houses all sorts of stories that come our way on the economy, as well as tips consumers can use to stretch their dollar a little bit further. Click the graphic to go to the section. RELATED STORIES Foreclosure: A far-reaching problem Published on May 04, 2008 Ellen Scrivens reminisces about the house that she lost due to foreclosure last August that is located off Burning Bush Drive.more » Getting hit from all sides Published on May 04, 2008 In 2006, 455 foreclosures were filed in Frederick County Circuit Court. In 2007, that number more than doubled to 1,025. more » Officials seek to help foreclosure victims Published on May 04, 2008 People facing foreclosure, or who know someone who is, will have the opportunity Monday night to hear from someone who can help. more » Comptroller: state efforts to stem Published on May 04, 2008 The effect of the foreclosure crisis will hit hardest at local budgets, according to the state's chief tax official. more » Borrowers' euphoria clouded subprime risks Published on May 04, 2008 People were so happy to be in a home that the risks of the subprime loans they signed up for went right over their heads. more » Budgeting measures may protect county from foreclosure trouble Published on May 04, 2008 With conservative budgeting, Frederick County is prepared financially for effect from the local economy caused by the foreclosure crisis. more » Signs of trouble Auctioneers saw dangers of subprime loans coming Published on May 04, 2008 Auctioneers saw it coming. They knew the subprime loan frenzy would cause many homeowners to mortgage their futures. more » Commercial real estate market ‘cautious’ Deputies notice rise in evictions and foreclosures Published on May 05, 2008 Deputies notice rise in evictions and foreclosures Frederick County Sheriff's Deputy First Class Kevin Eyler posts a final eviction notice on a residence door shortly before the door is opened and the contents are carried to the street. more » Commercial real estate market ‘cautious’ Minimal subprime impact expected Published on May 05, 2008 Frederick County's commercial real estate market remains strong, but cautious, and experts predict that the foreclosure crisis rocking residential real estate will have a limited impact. more » Foreclosure: Taking a wider look Published on May 05, 2008 The foreclosure problem is having an impact on the Frederick community -- to what extent, and what may lie ahead for Frederick County, is still up in the air. more » Bargain bus offers tours of foreclosed homes Published on May 05, 2008 Anyone interested in buying a home facing foreclosure can save time and gas by boarding the Bargain Bus. more » Tips on buying a new or foreclosed home Published on May 05, 2008 Tips for buying a new home: be approved by a reliable lender; make sure you get enough of a price cut to cover unnoticed damage or deferred maintenance and repairs; look for the homes on the market the longest (90 to 120 days) for the best deals; pay for your own inspection and, real estate agents advise, be patient. more » How and where to get help Published on May 05, 2008 HUD foreclosure prevention. more »

Wayne Six, an appraiser with Six and Associates, is considered by colleagues in the real estate field a straight talker when it comes to the industry.

Six says foreclosures negatively affect the local real estate market in two ways: increasing the volume of inventory, and foreclosed-on homes selling below market value that tend to pull down the market.

Most real estate transactions involve an informed purchaser and an informed seller, Six said. Both are acting in their own best interest and under no duress.

The bank, or trustee sale is not typical. Banks want a fast transaction to avoid additional carrying costs and are willing to "quick sale" the property just to get rid of it, Six said.

But that sale may not be so quick, according to Stephen "Buzz" Mackintosh of Mackintosh Inc. Realtors.

"Most people don't realize the time involved," in a foreclosure sale, he said. Mackintosh has had foreclosure sales that took six months to complete.

"Agents get frustrated, the buyer gets frustrated," he said.

His office has had a lot of calls about foreclosures, Mackintosh said, much of it from investors who want to buy the properties to rent or hold for future sale when the market turns around.

Inventory overload

With the extensive inventory of homes already in Frederick , many agents are finding themselves overloaded with listings, taking longer to get back to an interested client.

And it can affect entire neighborhoods.

"Although foreclosures have an impact on the market, in most neighborhoods it is only a temporary impact as long as the foreclosures do not predominate the neighborhood," said Six, the appraiser.

If there are a significant number of foreclosures in a neighborhood, they can control the market because of the lower sale prices.

"Newer tract subdivisions where homes are three years old or less are typically the worst case scenario. This is because our local market peaked in June 2005," Six said.

A recent Associated Press story reported that in some cases delinquent mortgagees are being paid by banks or lenders to vacate houses to avoid them taking revenge and destroying the property.

Foreclosed sales are typically done on an as-is basis, meaning the buyer takes the house whatever its condition as part of the deal.

In the few years before June 2005, buyers were lining up to pay soaring prices for properties, many valuing at 20 percent or more per year. When the market stalled, sales and prices fell.

Some homeowners with those newer homes are finding themselves what Six calls "upside down" -- paying a mortgage on a house worth less on the market than what they paid for it.

Six does see some light at the end of the real estate tunnel with local inventory of homes shrinking. But that could increase if more people decide to put homes on the market in the spring-summer selling season, or if foreclosures continue to increase.

The spring market, he said, "is actually looking pretty good," but noted that for many homeowners, their property taxes have doubled in just four years.

Six said increases in property taxes is "a much larger, permanent negative influence on our local market."

Builders stop construction

"It is certainly a tragedy for those families," said Brian Patchan of the Frederick County Builders Association. "They should have had more education on the impact of those loans."

With inventory rising and costs soaring, many builders have stopped construction plans.

While that may help real estate agents to sell existing homes, including some foreclosed upon, it impacts the county's economy because of a domino effect from construction layoffs, no purchases of building materials and less money flowing around the county for business or community needs.

"You see the TV ads, the vultures are out there," Patchan said of those who look for foreclosed homes to buy cheaply.

Buyers are cautious now, he said.

"Every time you see a foreclosure, that is a family that has been uprooted," Patchan said. "It takes away from the community. It is not an encouraging sign."

Even officials impacted

Even elected officials can find themselves in the middle of a foreclosure.

Delegate Rick Weldon and his wife Amy found themselves facing a sale of their home in Brunswick .

"We were caught in the adjustable rate," Weldon said. "We were facing a sale of the home."

A foreclosure notice on the property was published.

"But we were able to restructure our payments. We worked with the bank," Weldon said.

"There are options out there. People need to work with their lender, contact the Community Action Agency, there is help out there."

But according to the law firm and auction firm handling the Weldon foreclosure, until they received official notice from the lender, Indy Mac Bank, the foreclosure was still on.

Some helped by programs

Maryland's More House 4 Less program has helped buyers find homes for sale, including those that went back to lenders. Through its Community Development Association, the state also offers programs for employees assisted by employers to buy homes.

Bob Doll, chief investment officer for BlackRock Inc., said he looks for interest rates to go up, which would impact anyone buying a home, whether it was a foreclosure property or not.

For information on state housing assistance programs, visit at www.morehouse4less.com.