New Initiative in Maryland Seeks to Stop More Foreclosures

By: Salina Greene, Outreach Coordinator, NHS of Baltimore

There is some uplifting news during the current foreclosure crisis- Governor, Martin O’Malley’s administration is working on a new game plan that encourages mediation between homeowners facing foreclosure and their lenders. Assigning mandatory, independent mediators to oversee each foreclosure case will ensure fair negotiations between the lender and the homeowner. A number of states have already implemented this program with promising results. If the program passes in the state legislature, it will hopefully sway homeowners to seek additional help when they are faced with a foreclosure. Many do not seem to know about all the help available to them right in their backyards.

Foreclosures continue to rise in Maryland at a rate that far outpaces the national average. According to RealtyTrac, there is one foreclosure filing per every 157 households in Maryland; a rate that has jumped by 85.6% since this time last year. Market stabilization continues to be difficult and encouraging lenders to work with more homeowners to modify their loans is key. The greater concern is who would pick up the costs associated with hiring and retaining mediators from reputable organizations, for potentially large case loads. This is where the new grants come in. Enforcing stricter programs and laws that push lenders to explore a loan modification and prevent a foreclosure is the goal of the new federal initiatives.