Dismayed by the delay in federal programs that really help homeowners avoid foreclosures, about 15 real estate brokers and financial professionals in Maryland participated in a meeting held by the North Anne Arundel County Chamber of Commerce to call on state and local officials to give more attention to the worsening problem of foreclosure homes.
In October this year, Maryland foreclosures increased by 32 percent compared to the previous month, based on findings by RealtyTrac Inc. With one unit of every 774 households foreclosed, the total number of foreclosure properties in the state in October was 2,973.
According to Lucinda Jones, civil records supervisor at the Anne Arundel County Circuit Court, foreclosures in the county soared to 240 units in October from 161 units in September. She said that if Maryland foreclosure rates are not changed by intervention programs, county foreclosures could reach 270 in November.
Lee Spencer, manager of the Pasadena branch of First Metropolitan Mortgage, complained that the federal bailout programs are sloped towards the welfare of the banks and not to the homeowners hardest hit by the economic downturn.
He called on state legislators to work with accountants and lawyers so that what they will come up with to solve Maryland foreclosures will really be realistic and beneficial for homeowners.
In November, the state has received commitment from six mortgage firms to help troubled borrowers avoid foreclosure. The mortgage firms committed to delay foreclosure proceedings for 60 days and to cancel all fees and penalties accruing during the 60-day period. It is expected that the agreement will benefit about 25 percent of home loans across Maryland.
In addition to the state program, Anne Arundel County Executive John R. Leopold has allocated $350,000 to provide mortgage counseling to borrowers trying to refinance. The semi-private county agency Community Development Services Inc. has been also helping borrowers negotiate with mortgage lenders and has been requesting for a federal grant to acquire foreclosed properties for affordable housing redevelopment.
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