While it has definitely been taking alot longer to sell homes in Maryland, with our proximity to DC we have been spared alot of the pain in the housing market. But like many areas we have plenty of subprime loans. WMAR, the abc affiliate here in Baltimore has been doing alot of research and reporting on the issue. They have even been mapping the foreclosure hotspots and studying the demographics of the issue. It is not pretty.
Consumer advocates say Maryland is on the brink of a foreclosure "tsunami" that’s headed our way because as many as 1 out of 5 homes will go into foreclosure next year. (I think they mean to say 1 in 5 suprime loans. Take that stat as written with a grain of salt.)
The ABC2 News Investigators spent two months creating a map that not only lets you see if your neighborhood was targeted, but also if you now live in a foreclosure "hotspot."
We teamed up with Investigative Reporters & Editors, Inc., a non-profit organization of reporters, to make a map that’s the first of its kind. When you look at it, you’ll see red spots – neighborhoods hit hardest by subprime loans.
"The problem is the tsunami is going to happen," says Phillip Robinson, the Executive Director of Baltimore’s Civil Justice Network. "One in five subprime loans will go to go in foreclosure."
Which means places like:
The corner of Perring Parkway and E Northern Parkway in northeast Baltimore City, where subprime loans make up four out of five loans...
The neighborhood around Aberdeen Proving Ground in Harford County...
And the homes between I-795 and I-70 in western Baltimore County...
Will probably all end up becoming foreclosure hotspots.
But we found something even more startling. When you look at the map, you will see gray spots clustered in some areas. Those gray spots mean minorities make up more than 10% of that neighborhood.
The map shows the more minorities in your area, the higher the percentage of subprime loans...and the more likely your home will lose value because of foreclosures.
"You'll find regrettably they fit like a glove," says the man in charge of regulating Maryland’s mortgage industry, Maryland’s Department of Labor, Licensing and Regulation Secretary Thomas Perez.
In response, the Maryland Brokers Association says you can’t blame all the brokers. "Bad apples, we got them, can't deny that," says spokesman Thomas Shaner. But he also says it’s the homeowner who makes the final decision. "The broker is not in a position legally to say to you I'm not going to give it to you because I think you're going to fail this year."
When we pointed out the state is has a record number of foreclosures that only continue to grow, Shaner responded, "This is really just a market correction."
"To me, this is criminal," says Congressman Elijah Cummings (D-MD), who was appalled when we told him the hardest hit areas also happen to be those with the biggest minority populations. "Criminals target their victims. They try to figure out how they can get away with an act that is unlawful, get a profit on it and move on."
But neither the state nor the Federal government tracks how many foreclosures each broker racks up.
http://www.abc2news.com/...
http://www.abc2news.com/...
Here is one of the maps.
http://centralmediaserver.com/...
It is not just the subprime loans either. One of the links that I have added is about a single mother who makes six figues and has lost her $180,000 home.
Maryland has the fastest foreclosure process in the nation. If you miss a payment, your lender can sell your home in just 15 days.
"Maryland's 'Rocket Docket' of going into foreclosure sale in 15 days doesn't have to be," says Phillip Robinson for the legal-aid group Civil Justice Network. "Most states have a much slower process."
To make matters worse, Robinson says the banks don’t even have to tell you they’re selling your house. "It’s the only legal proceeding in Maryland that doesn't require notice, which to me is mind-boggling," he says. "If you want to sue me for $20 in District Court, the judge can't sign the order until you can prove through an affidavit that I got served. But if you want to sue me and take away my home and foreclose on my home, you don't have to prove to the judge that I got notice of the lawsuit."
"This is everyone's problem and we need to get them to get outraged," says Congressman Elijah Cummings (D-MD). He says he’s going to fix the problem, but needs you to write him a letter complaining about Maryland mortgage meltdown first. "I need people to be fiery about it."
So there you go Maryland Kossacks. Please write to Congressman Cummings and make that complaint.