Maryland Foreclosure Assistance Efforts

For 2009, Maryland ranked 13th among all states in foreclosure rate, an increase of 33.74% from the year before. Nationally, 2009 was the worse year for foreclosures in US history, with 2.8 million property owners receiving a foreclosure notice.

The rate has slowed after intensive negotiations last year with the top six mortgage servicers in the state: HSBC, Ocwen, GMAC ResCap, Litton Loan Servicing, AmeriNational Community Services and Citi Mortgage. These institutions agreed to take the following steps:

• Provide an answer to homeowners within 75 days for those who submit a loss mitigation package
• During that time the foreclosure process would be halted
• Servicers agreed to provide staff incentives for preventing foreclosure
• Servicers withdrew any staff incentives encouraging foreclosure

These six servicers handle nearly one out of four home loans in the state.

Additionally, the state changed its laws to include the following:

• Lengthen the foreclosure process to 150 days providing longer time for notices
• Increase the liabilities for mortgage fraud, unleashing the Department of Labor, Licensing and Regulation to investigate more aggressively
• Require lenders to verify a borrower’s ability to repay a mortgage
• Ban prepayment penalties on home loans
• Require the licensing of all mortgage professionals, through the SAFE Act, which took effect July 1, 2009

Maryland also established the Bridge to HOPE (Home Owners Preserving Equity) Loan Program to provide small zero interest gap loans for home owners in trouble.

The state officially urges that homeowners facing home loan repayment difficulty, act immediately to forestall foreclosure, because options diminish with the passage of time. To get the word out, the state launched the “Mortgage Late? Don’t Wait!” advertising campaign.

The foreclosure process in Maryland is outlined here. More information is available through The Maryland Department of Housing and Community Development.

Maryland residents facing foreclosure should visit www.MDHOPE.org or call toll free 1-877-462-7555, 8 AM to 8 PM Eastern Time, 7 days a week for help.

Click here for a list of Maryland state approved counselors or call the Consumer Protection Division of the Office of the Attorney General of Maryland at 1-888-743-0023.

The state has established a network of lawyers involved in preventing foreclosures through the following pro bono services:

• Brief advice and counsel
• Direct representation in foreclosure defense
• Legal counseling through non-profit housing agencies

Legal help can be obtained by contacting:

Pro Bono Resource Center of Maryland
520 W. Fayette Street
Baltimore, MD 21201
foreclosure@probonomd.org
http://probonomd.org

Mortgage fraud complaints may be filed by calling the Commissioner of Financial Regulation Complaint Hotline 1-888-784-0136.

If you are unable to reach your servicer or local state program, or if you would like additional assistance in this process contact Mortgage Outreach at 1-866-408-0420. Mortgage Outreach works directly with many servicers to help find solutions for borrowers that are struggling to keep up with their payments.