In Maryland, where the foreclosure rates rank among the highest in the nation, homeowners facing the threat of losing their homes can find significant support through various programs. Notably, BlueHub SUN offers a lifeline with its nonprofit refinancing solutions that aim to sustain homeownership.
Maryland homeowners can also turn to housing counseling agencies for guidance and support. These agencies provide services from financial counseling to negotiating with lenders, ensuring that homeowners have the best possible chances to retain and regain homeownership. This comprehensive support network is designed to provide relief and practical solutions for those in need.
Smith emphasizes that homeowners should know immediate steps are available to help protect their homes from foreclosure. Ignoring phone calls, emails, and letters from lenders will only make it harder to change course before the situation becomes unmanageable. The first step should be reaching out to the lender before a payment is missed. At that point, or if already behind on a payment, the best move is to have an honest conversation with the lender and develop a plan to get back on track.
Foreclosures are expensive, and lenders often end up losing money through the process. Therefore, it’s in the lender’s best interest to keep making money through mortgage and interest payments. Possible options include loan modification or a change in the payment schedule. Documenting income through bank statements and pay stubs is crucial to avoiding foreclosure because the lender needs to fully understand the homeowner’s financial situation.
Although the Maryland Homeowner Assistance Fund stopped taking applications in September, homeowners can still get help through one of the 40 housing counseling agencies approved by the Maryland Department of Housing and Community Development. These counselors are a valuable free or low-cost resource that can help figure out financial situations and Maryland’s foreclosure laws. They can even negotiate with lenders on the homeowner’s behalf.
When Smith faced foreclosure, he used a foreclosure relief program called BlueHub SUN to get a new affordable mortgage and maintain homeownership. This nonprofit organization refinances or buys homes in foreclosure and sells them back to their original homeowners with new, affordable mortgages. In Smith's case, they were able to buy his home from his lender at a reduced price and sell it back to him with a new, affordable mortgage.
States including New Jersey are supporting homeowners facing foreclosure by enacting community wealth preservation programs. A New Jersey law gives homeowners the right of first refusal to repurchase their foreclosed home at the county sheriff’s auction. This kind of foreclosure protection law prevents investment companies from profiting off foreclosed homes and allows people to stay in their homes and communities.
We need to remove the shame and stigma associated with foreclosure by creating greater opportunities for homeowners to ask for help and by making more resources available to Marylanders.
For a full exploration of these issues and more detailed advice, read the full story at The Baltimore Banner.