by Dan Krell © 2010
Foreclosures continue to be a national issue; however, a tiny glimpse of li
ght from the end of the tunnel may be peering through for the local market. According to the April 2010 report Property Foreclosures In Maryland First Quarter 2010 by the Maryland Department of Housing and Community Development (which can be viewed on mdhope.org), the number of national foreclosure filings (which includes notices of default, notices of foreclosure sales and lender purchases of foreclosed properties) increased the first quarter of 2010 (7.2% compared to the fourth quarter of 2009 and 16% compared to the first quarter of 2009). It is estimated that 1 in 138 households in the United Sates received a foreclosure filing during the first quarter of this year.
The news for Maryland, however, seems somewhat better. The report indicated a reduction of foreclosure filings in the first quarter of 2010 compared to the fourth quarter of 2009 (-11.5%) but increased compared to the first quarter of 2009 (+59.9%). Montgomery County fared much better such that the total number of foreclosure filings decreased in the first quarter of 2010 compared to the fourth quarter of 2009 (-24.2%) and the first quarter of 2009 (-14%).
Along with the ongoing problem of foreclosure come the continued attempts from home owners to save their homes. As the real estate market deteriorated, many home owners found themselves in a negative equity situation and unable to refinance their mortgages. Mortgage modification became the prevalent means of foreclosure relief as home values decreased during the market decline; home owners facing financial challenges seek to modify their mortgage terms to make their mortgage payments more affordable.
Since the beginning of the foreclosure crisis, foreclosure rescue scams have taken advantage of d
esperate home owners trying to save their homes. As the prevalence of mortgage modifications grew, so did mortgage modification scams. Although legitimate mortgage modification information is readily available from HUD, Fannie Mae, Freddie Mac, federal and local governments, non-profit organizations, etc. home owners continue to fall prey to scam artists.
Because scammers continue to confuse home owners searching for assistance by evolving their techniques to appear to be legitimate, the Loan Modification Scam Prevention Network was founded as a project of The Lawyers’ Committee for Civil Rights Under Law. The Loan Modification Scam Prevention Network (preventloanscams.org) is a coalition effort created to bolster ongoing government, law enforcement, and public education efforts to fight the scammers who are intent on defrauding distressed home owners.
To assist home owners, the preventloanscams.org website contains extensive information such as (but not limited to) housing counseling, tips for avoiding scams, state and local foreclosure resources, the means to report suspected scams, and a list of alleged scam artists! Additionally, the site lists state and local laws regulating businesses involved in foreclosure relief, as well as a statement about attorneys providing loan modifications.
If you are seeking a mortgage modification, the Loan Modification Prevention Network is one of the many resources available to you; the website has a comprehensive database. Additional resources are available through HUD certified counseling programs and the Maryland Hope Hotline (1-877-462-7555). Maryland home owners facing foreclosure have protections under the Protection of Homeowners in Foreclosure Act, such as prohibiting foreclosure consultants from collecting upfront fees. If you suspect you are being scammed, contact a local consumer protection agency and/or law enforcement.
This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of April 26, 2010. Using this article without permission is a violation of copyright laws. Copyright © 2010 Dan Krell
Why so many foreclosures