The Current Housing Crisis in Maryland

Abstract The received housing crisis in atomic number 101 has devastated much of the inner city of Balti to a greater extent and environ counties. The economic collapse of 2008 has left virtually(prenominal) Maryland residences unemployed or underemployed. The direct impact of the economic collapse has left homeowners wondering how they lead pay their mortgages and keep food on the table. Maryland homeowners have been essay to make ends meet. Some of the issues that ar being faced have to do with the predatory bestow practices of some mortgage lenders. President Obama signed an arrangement to bail aside some banks in hope to spargon families from losing their homes.Those hopes did non pan out headspring. There was another bailout of $25 billion dollars allotted in Feb 2012 to suffice homeowners and fell mortgages to the principal home values. Thus far the mortgage labor has founding fathere as little as possible to hold up their end of that bargain. We need to get edu cated and hold these predatory lenders responsible. The topical Housing Crisis in Maryland By a show of hands, how umteen people atomic number 18 in a financially challenging web site with remunerative their mortgage? Do you know that you may very well be a victim of predatory lending practices?You may be asking yourself what is predatory lending. Some of us are familiar with the term. For those who are not, I will explain what a predatory lender is and the gist they have had on our communities. Predatory lenders and the tactics they use to originate loans with unprejudiced buyers are un uninfected. We now have predatory legal and rescue work popping up everywhere with the defense that they are here to servicing us. I intend to house you with information to free legal serve and information to assist in the fight to hold the mortgage lenders accountable for what they are doing.I am a Baltimore City resident who is upside atomic reactor in my mortgage. I owe more on my home than it is worth in todays commercialize. I am currently in the fight to have my mortgage lender do what is right by lowering my formula home value to a fair market price. I currently owe double what my home is worth. Many of us are upside down, have high interest pass judgment or are currently in foreclosure. We are looking for relief from the banks that dont seem to care much about where our families will eternal sleep at a time we lose our homes. We need to embarrass them for the way they are treating minorities and low-mode ordain income families.Predatory lending practices are a huge contributing factor in the current economic crisis. Many families lost income and the home values have been declining drastically. economy our homes from foreclosure is the main focus of many families in Maryland. I intend on exposing predatory lending practices that homeowners may not be aware of. The wish of strong regulations in Maryland has allowed unscrupulous mortgage lenders to ta ke favour of unsophisticated homeowners. Predatory lending has had a devastating effect on individuals and families.The term predatory lending has been used to describe a massive range of loans that are not ballpark in the prime market. These loans do not offer any benefit to the borrower. Some of the most common predatory practices are Excessive fees and points Ignoring borrowers ability to repay balloon payments Interest only loans Excessive interest evaluate Concealing the unbowed cost of the loan Federal regulators have warned banks that non-traditional mortgages such as interest-only loans may lead to a rash of defaults when the principal must be compensable or interest rates increase.With such loans, the homeowners are not paying towards the principal on the loan, only the interest. Interest rate increases could have a devastating effect on the mortgage payment monthly. Adjustable rates have the same devastating effect on homeowners. The interest rate is not guaranteed and could fluctuate greatly on a per month basis. With adaptable mortgage loan terms homeowners have no clue on what the loan would eventually cost them. This lending practice is a repair up to fail proposition. Underemployment and lack of employment has been the peripheral nail in the coffin for many Maryland families.Many families have lost at least one household income and a few have lost both incomes. Income loss combined with the volatile housing market has crushed the American Dream for many homeowners. People who were able to divulge work afterward economic crisis, had to take drastic pay cuts which were not adequate to birth their current needs. With the economic downturn families are left to pay for homes they cannot afford. This crisis occurred when the mortgage bubble burst. Many homes were being sold for much more than their fair market value.Once the bubble burst the home value depreciation was extortionate and sharp. People lost 20-40% of the fairness in their hom es. Although there are many programs available to help homeowners, the majority of them are unable to help homeowners who are under water on the mortgage due to the lost equity in their homes. Some foreclosures are voluntary. When the bubble burst, homeowners found themselves owing 100,000s more than the homes were worth. Those homeowners decided that paying off the mortgage was indeed a disadvantageously deal. So they just walked away from the properties.The new dagger in homeowners ass is the rise in property taxes. The city government needs property so they have raised the taxed values of homes to bring in more money regardless if the home values are decreasing. Homeowners are losing their homes because their mortgage payments did not include an escrow for homeowners insurance and taxes. Once a homeowner becomes aban through with(p)d on their property taxes, they have to pay the past due standard in addition to the current amount due. For the Maryland residence that find the mselves in foreclosure, please seek assistance sooner than later.Maryland laws do not demand that you are notified of the Intent to foreclose. Within your originating loan documents you signed all a power of sale or assent to decree which fundamentally is an ex parte order to sell your property if you are in default. In addition, the predatory lenders make it impossible to become current again once the mortgage is in default. They can add servicing fees such as late fees, force placed insurance, inspection fees, etc. to make it operose to bring the account current. We as homeowners have the right to stay in our homes.Homes we have cared for over the years. The banks should not have the right to evict us without improving the foreclosure process so we have better and earlier grade and the opportunity to redeem prior to significant costs being incurred. They should reduce the loan principle to the fair market value, adjust interest rates and reevaluate the financial situation of th e homeowners. The mortgage industry did a ill service to many of the homeowners in the room. Many of us were uninformed about the repercussions and pitfalls concern with interest only, variable rates and balloon payment loans.Predatory lending practices contributed in a flash to the economic crisis of the mortgage industry in Maryland. I would like to provide information to several pro bono legal services and housing resources professional Bono Resources Center of Maryland. (410)837-9379 or toll free (800)396-1274 www. probonomd. org 1. Civil referee, Inc. www. civiljusticenetwork. org 2. Public Justice Center (410) 625-9409 for tenants who landlords are in foreclosure 3. Community Law Center (410) 366-7777 www. communitylaw. org 4. Maryland Hope (877) 462-7555 www. mdhope. dhcd. maryland. gov 5.Foreclosure Proceedings in Maryland (Brochure) http//www. msba. org/departments/commpubl/publications/brochures/foreclosure. htm There has been an ongoing investigating into the bankin g fraud and predatory lending scandal. President Obama signed another bailout of $25 billion dollars in Feb 2012 to help homeowners and reduce principle mortgage values. The bailout tangled Bank of America, Citigroup, Wells Fargo, Ally Financial and JPMorgan Chase. Freddie Mac and Fannie Mae have merely to come on board however they do offer some homeowner assistance with modification of term and underwater loans.Many look at the bailout as another opportunity to reward the banks for the wrong doing they have done to the citizens and many communities. I was able to look at the bigger picture. This is a way to monitor how many loans are modified and how many principle values are reduced. By providing the bailout this time around there were delimitate stipulations as to what the funds are to be used for. North Carolinas Banking Commissioner Joseph Smith will serve as the independent monitor to carry out the deals and their terms. The bailout does very little for the people who hav e already lost their homes. They are eligible to receive up to $2000.