Yea for Maryland!

While the federal government continues to “discuss” how to effectively deal with the foreclosure epidemic across the nation, the state of Maryland has taken matters into their own hands.

Legislation went through this month to combat the housing crisis in Maryland and was not only accepted quickly but went into effect immediately. The Maryland bill takes the following steps to assist homeowners in crisis:

1. Extends the foreclosure timetable from 15 days to 150 days.

2. Bans “foreclosure rescue transactions” and sentences violators to prison.

3. Includes a bill requiring that people seeking subprime loans receive independent credit counseling before accepting risky loans.

There are several other states who are reviewing legislative measures against foreclosure, including:

Connecticut: Establish emergency mortgage assistance payment program for at-risk homeowners; authorize tenants of a foreclosed property to continue to occupy the property.

Delaware: Strengthen regulations on foreclosure consultants and foreclosure reconveyances to protect homeowners from mortgage rescue schemes that deplete their equity.

District of Columbia: Prohibit equity-stripping through unethical property transactions and protect financially distressed homeowners.

Florida: Prohibit "foreclosure-rescue consultants" from engaging in certain acts or failing to perform contracted services; extend the foreclosure timetable to 110 days.

Massachusetts: Create a Massachusetts Homeownership Protection Program and a foreclosure prevention fund; subject mortgage fraud to criminal prosecution.

Michigan: Create a foreclosure prevention fund; provide assistance to distressed homeowners; prohibit foreclosure actions against active military personnel.

New York: Authorize state loans to homeowners facing foreclosure; provide free legal counsel to those undergoing foreclosure; strengthen regulations on businesses engaging in activities relating to home loan defaults and foreclosures.

Ohio: Prohibit foreclosure actions against active military personnel or veterans less than 18 months removed from service.

Virginia: Require people who advertise services to help owners avoid foreclosure to disclose the nature of their services and the owners' right to rescind a contract entered into with such persons.

We will see over the coming months how effective these measures are, but it’s a start! Yea for Maryland!