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Maryland Governor Expands Foreclosure Initiative

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By : Cassiano Travareli    99 or more times read
Governor O’Malley has extended a foreclosure program he launched in June 2007 to help homeowners keep their homes and control the soaring number of foreclosed properties across the state.

He announced that he has received commitment from at least six large mortgage companies to work with the Department of Labor, Licensing and Regulation to modify the terms of troubled mortgage loans in order to prevent foreclosures or to prevent spectacular increases in monthly amortizations.

According to the governor’s spokesman Shaun Adamec, the six mortgage companies, including GMAC, represent about 23 percent of the mortgage sector in Maryland.

Adamec applauded the six companies for their good will and expressed hope that other mortgage companies will follow their example. He said that mortgage companies do not gain anything from foreclosed homes, and neither do the homeowners and their families who, more than any other party, are the ones who immediately suffer from foreclosures.

Adamec also mentioned that the agreement is a much better option than measures such as imposition of sanctions and introduction of regulations that force mortgage companies to renegotiate with troubled homeowners and defaulting borrowers.

The agreement with the mortgage companies is an extension of the task force launched by Governor O’Malley in June 2007. Back then, the task force was mandated to combat predatory subprime lending and prevent home foreclosures.

Among the members of the task force is Thomas Shaner, head of the Maryland Association of Mortgage Brokers. Shaner said he took part in studying Maryland’s foreclosure crisis and establishing initiatives to solve the problem.

He however clarified that his organization is not involved in mortgage modifications, stating that mortgage brokers’ main task is to assist in the writing of mortgages. He says that his group supports whatever the governor introduces to protect homeowners from being forced out of their homes.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.

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