According to the Baltimore Sun, civil rights groups from across Maryland are lobbying lawmakers in Annapolis to impose a six-month moratorium on home foreclosures because of the high number of cases in the state.
The paper reported that banker organizations are against the effort, saying that there are already plenty of options for struggling homeowners, and that the housing market will not rebound until delinquent mortgages are cleared up.
According to the group, RealtyTrac, Maryland had the third-highest foreclosure rate in the country in February 2014. Leaders with the state’s NAACP and CASA de Maryland have made the moratorium one of their top legislative priorities this year, according to the Sun.
Potential legislation is scheduled to be heard by a House committee about foreclosures soon. “We’re finding that a lot of folks are ‘under water,'” said Bob Ross, an NAACP spokesman, according to the Sun. This refers to homeowners who owe more on their mortgages than their house is worth.
Ross said that many complaints about mortgages include lost paperwork and moves by lenders to foreclose on homes even though the homeowners are in the process of modifying payments.
“Many African-American and Latino homeowners are in danger of being homeless,” said Susana Flores, spokeswoman for CASA, the state’s largest immigrant rights group, according to the Sun.
Kathleen Murphy, the Maryland Bankers Association’s president and CEO, said that reforms have slowed foreclosures, more than doubling the time it takes for a mortgage lender to take action against a delinquent borrower from 217 days before the recession to 575 days now, according to the Sun .
Can I Save My Maryland Home From Foreclosure?
You should be aware that reorganizing your debt by filing for bankruptcy could help you save your home from foreclosure.
During a Chapter 13 bankruptcy, a person can enter into a repayment plan lasting between three to five years. If you have a mortgage, this can give you time to pay off your debt, as an automatic stay goes into effect that prevents a lender from taking actions against you to collect debts.
A bankruptcy can also provide you with a shot at a lien strip, eliminating “junior mortgages” or second or third mortgages. It also gives people an opportunity to catch up on past due property taxes.
If you are facing the threat of foreclosure, you can contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.
You can also visit our Facebook page, our LinkedIn page, our Google+ page and our Twitter page for more information about our services. We are located near the Navy Memorial/Metro Station.
Law Firm of Kevin D. Judd– Maryland and Washington DC bankruptcy attorney
Judd’s Judgment: Last fall, Maryland received about $88 million from a $2.1 billion national foreclosure settlement against a loan servicer.
Source: http://articles.baltimoresun.com/2014-02-24/news/bs-md-foreclosure-bills-20140224_1_moratorium-homeowners-realtytrac
