Archive for 'Maryland'

Governor O’Malley has extended a foreclosure program he launched in June 2007 to help homeowners keep their homes and control the soaring number of foreclosed properties across the state.

He announced that he has received commitment from at least six large mortgage companies to work with the Department of Labor, Licensing and Regulation to modify the terms of troubled mortgage loans in order to prevent foreclosures or to prevent spectacular increases in monthly amortizations.

According to the governor’s spokesman Shaun Adamec, the six mortgage companies, including GMAC, represent about 23 percent of the mortgage sector in Maryland.

Adamec applauded the six companies for their good will and expressed hope that other mortgage companies will follow their example. He said that mortgage companies do not gain anything from foreclosed homes, and neither do the homeowners and their families who, more than any other party, are the ones who immediately suffer from foreclosures.

Adamec also mentioned that the agreement is a much better option than measures such as imposition of sanctions and introduction of regulations that force mortgage companies to renegotiate with troubled homeowners and defaulting borrowers.

The agreement with the mortgage companies is an extension of the task force launched by Governor O’Malley in June 2007. Back then, the task force was mandated to combat predatory subprime lending and prevent home foreclosures.

Among the members of the task force is Thomas Shaner, head of the Maryland Association of Mortgage Brokers. Shaner said he took part in studying Maryland’s foreclosure crisis and establishing initiatives to solve the problem.

He however clarified that his organization is not involved in mortgage modifications, stating that mortgage brokers’ main task is to assist in the writing of mortgages. He says that his group supports whatever the governor introduces to protect homeowners from being forced out of their homes.

Search for Foreclosed Homes by Maryland Top Cities:

• Baltimore Foreclosed Homes
• Upper Marlboro Foreclosed Homes
• Bowie Foreclosed Homes
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Across the nation, millions of homeowners are struggling with their mortgage debts and a significant percentage of them are losing the battle. In Maryland, the continued rise in the number of foreclosure homes has even prompted a Courts of Appeal chief judge to urge non profit organizations, local officials and individuals to help these troubled borrowers.

Fortunately, the plea of the chief judge did not fall on deaf ears. A new program named Foreclosure Prevention Pro Bono Project has been launched to address the current problems in the housing crisis. The project aims to train local lawyers so that they could advice distressed homeowners and assist in foreclosure counseling. The said training program will last the entire summer.

In Maryland, there are about 33,000 licensed lawyers who received a letter from Chief Judge Robert Bell, urging to participate in the program and volunteer some of their time as well as make monetary donations.

The action of the chief judge and the subsequent formation of the project came at a time when the foreclosure problem in the state has become more pronounced. The entire state is feeling the negative impact of the rising foreclosure rate, declining home prices and sluggish home sales.

According to the Mortgage Banker’s Association, during the first quarter of the year, the number of Maryland homeowners who were late in their mortgage payments reached a staggering 70,000.

There are various reasons why these homeowners are having difficulties paying their mortgage debts. Many are suffering from financial problems brought about by unemployment, illness or marriage troubles. Others, on the other hand, simply could no longer afford their mortgage dues especially after the interest rates have reset.

Other cities and states could definitely benefit from the example set by Maryland when it comes to providing assistance to troubled borrowers.

In reaction to the rising foreclosure rate of foreclosure all over the state, Maryland Governor Mike O’Malley announced a new emergency order Tuesday requiring mortgage lenders to notify the state ahead of the homeowner when a default is going to be issued on a delinquent mortgage. The legislation is intended to give local authorities a chance to offer help and assistance to the homeowner before the process begins, so that they will be better prepared and more equipped to avoid an eventual foreclosure.

In a speech accompanying the announcement, O’Malley blamed the mortgage industry for the recent foreclosure crisis that has swept the nation, citing their lack of responsibility in assisting homeowners in trouble with their mortgage payments. He was careful to point out that while many companies are quick to draw homebuyers into mortgage loans that may be dangerous for them, they fail in the realm of customer service and providing information to homeowners on what to do when they cannot meet their required payments. The governor plans to meet with major mortgage brokerage executives later in the week, and will also move to consider revoking the licenses of some firms that have drawn considerable heat from the public regarding alleged unethical lending standards.

Maryland foreclosures have shot up in recent times, with suburbs of Washington D.C. like Bethesda and Silver Spring being some of the hardest hit areas. Montgomery county and Prince George county have also been especially affected by the trend, as rates in those areas nearly doubled from the end of 2006 to the end of 2007.

Maryland is the second state to issue this kind of emergency rule, as California recently required lenders to provide information on homeowners with Adjustable Rate Mortgages that are about to reset. The wide proliferation of ARMs is blamed for a good portion of the foreclosure surge, as homeowners are unable to keep up with the varying monthly payments required by them.

Moves like these suggest that local governments are starting to take the foreclosure trend very seriously, especially in the wake of many experts predicting that 2008 may be the worst year yet. The housing market slump has had a huge effect on the overall economy, and with economists predicting an imminent recession, states are doing all they can to buck the trend. O’Malley’s administration is in the process of pushing bills through the state legislature which would lengthen the time required by law between a default and a foreclosure and increase the penalties for mortgage fraud.

The wheels of legislation are in motion in several other states as well, and it will be interesting to see whether or not new laws can ultimately affect the health of the foreclosure and housing market.

Related Links:

• Baltimore Foreclosure Homes
• Upper Marlboro Foreclosure Homes
• Maryland Foreclosure Homes
• Foreclosures

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.

As the nation breathes a sigh of relief due to the 1 percent foreclosures rate dip in April, the number of Maryland foreclosure homes recorded for this month reached 1,045, a 9 percent increase from last March’s figures. The US state holds the 28^th spot for the highest foreclosures rate, with one foreclosure filing for every 2,050 homes. There are actually 487 Notice of Defaults, 503 Notice of Trustee Sale and 55 REOs.

Whenever the real estate market conditions favor the buyers, you can be sure that potential bargains are just around the corner. These Maryland foreclosure homes are usually priced based on the existing mortgage debt plus the other fees incurred by the mortgagor during foreclosure proceedings. Because of this, buyers can easily own homes and at the same time gain instant equity because of the very affordable prices.

The numerous Maryland foreclosure homes for sale are the result of the high levels of delinquencies, mainly from the subprime mortgage loan sectors. A couple of years back, during the infamous housing boom, buyers were enticed by aggressive lenders to purchase homes they could not afford in the first place. Worse, some of these owners actually have less than desirable credit records, making them a bad choice for mortgage loans. As these mortgage loans, primarily with adjustable interest rates, began resetting, many of these subprime borrowers ended up with not enough money to pay their mortgage dues.

Many buyers are on the lookout for owners of these foreclosure homes in Maryland since they offer the best bargains. If you are unfamiliar with an area, simply work with foreclosure experts like Foreclosure Deals. These real estate brokers will not only offer you a wide selection of amazing foreclosure homes but also expert and professional assistance.