There's good news for Marylanders struggling to pay their mortgages. Six of the nation's largest loan servicers have struck a deal with the state to provide more foreclosure relief. Cecelia Smith knows what it means to live paycheck to paycheck. "It's like one day at a time. I have to pull all my resources to make sure my mortgage is paid."
Cecelia is not alone. In Maryland, the foreclosure crisis has hit families hard. In an effort to stem the tide of rising foreclosures, the governor announced Friday an agreement with 6 mortgage servicing companies to give homeowners facing foreclosure the answers they need in a timely manner.
The 6 participating companies are HSBC, Ocwen, GMAC ResCap, Litton Loan Servicing, AmeriNational Community Services, and Citi. They service about a quarter of home loans in Maryland. Under the agreement, loan servicers will give homeowners a cooling off period of about 2 months, allowing them time to work out their problems. During that time, the servicer will not levy penalties or take any further action on a foreclosure.
Tom Perez, Secretary of Maryland’s Department of Labor, Licensing & Regulation says, "If you buy people time, you purchase the ability to work things out." The servicer will also assign a direct point of contact for homeowners. Governor O’Malley says, "So rather than calling some faceless robo call system... these companies will actually assign someone who understands Maryland."
The companies will also work with homeowners to modify their subprime or adjustable rate mortgages. Governor O'Malley says the state is working to get more loan servicing companies on board and vows to call out those who've left struggling homeowners in the dark.
Maryland has a "Bridge to Hope" loan program to help homeowners facing foreclosure. That number is 1-877-462-7555.
