In a recent report conducted by Karma Credit, Maryland came in third among states with the highest amount of mortgage debt in the country. Ironically, like many other states with large mortgage debt, Maryland is also among the lowest in foreclosure rates nationwide.

In Maryland, homes lost between 7 and 10 percent of their value during the recession. Compared to states like California, where homes lost nearly 30 percent of their value, this statistic may seem fairly good. However, the average per-person mortgage debt is still over $40,000 greater in Maryland. With that said, debt relief options, including Chapter 13 bankruptcy, can help homeowners avoid foreclosure.

One of the reasons for the high amount of mortgage debt in Maryland is attributable to the state's having the fifth-highest median home value in the country. The high rate of the initial mortgages taken out in Maryland virtually guaranteed residents a place in the top 10.

How have states with so much mortgage debt avoided high foreclosure rates? The answer is that many of the states with the highest amounts of mortgage debt also have the highest median incomes. Maryland, for example, has the highest median income in the country.

While the debt is certainly cumbersome, many residents in the Baltimore area are able to manage the decline in home value. Unfortunately, this is not true for everyone. Despite even the positive conclusions of the Karma Credit report, there are many Maryland residents who need help.

For homeowners who are unable to manage the dramatic drop in home values, bankruptcy may be the only available means of protection. Chapter 13 bankruptcy can be a solid step in the right direction for people who can no longer afford their mortgage payments, but because of the complex nature of bankruptcy, it is always a good idea to discuss the matter with a qualified professional.

Source: msnbc.com, "States where citizens carry the most mortgage debt," Michael B. Sauter, Jan. 30, 2012