Learn more about
DHCD, MDHope.org, foreclosure

Secretary Raymond A. Skinner
Maryland Department of Housing
and Community Development

Researchers at the Maryland Department of Housing and Community Development maintain a map (PDF, page 8) showing areas of the state most affected by the foreclosure and sub-prime lending crisis – much the way epidemiologists track the spread of an infectious disease.

No corner of the state has been immune to the crisis, which struck the state in mid-2007 like a dream-devouring virus, as thousands of families suddenly faced the threat of losing their homes.

But the most severely impacted areas – marked on the map in a deep, brownish-red (the color of congealed blood) – have remained consistent month after month since the crisis hit. They include almost all of Baltimore City and Prince George’s County, a large swath of Baltimore County, and significant chunks of Frederick, Washington, Charles, and Montgomery Counties.

Not shown on the map, but palpable in the affected communities themselves, is the way the misery of an embattled family radiates out to affect neighborhoods, communities, and the entire state. Last year, foreclosures cost Maryland more than $4 billion in lost home value, wages, and property taxes and took an untold emotional toll.

And we’re not yet out of the woods, as the troubled economy continues to push more and more families closer to the financial brink.

Fortunately, Maryland has put together an extensive array of programs to help families in areas hardest hit by foreclosure. Under the leadership of Governor Martin O’Malley, Maryland was one of the first states to enact legislation to protect consumers from unscrupulous mortgage brokers and allow families more time to find resolutions with their lenders. The state also implemented a framework with six servicers operating in Maryland to enhance responsiveness to customers wanting to mitigate loss.

In addition, it developed refinance and short term loan programs, invested more than $5.5 million in a network of non-profit housing counseling agencies across Maryland, and created the Maryland HOPE hotline and website, which connect distressed homeowners with free housing counseling and pro-bono attorneys. This spring, the state allocated more than $18.9 million to help local jurisdictions stabilize communities hardest hit by foreclosure. Those efforts promote strong sustainable home ownership which is the foundation of a vibrant community.

The O’Malley administration’s comprehensive strategy has put Maryland on a much stronger footing than other states. Coupled with federal help in the form of President Obama’s ambitious stimulus and housing plans, Maryland’s families have additional resources to save their homes.