Agreement Creates Credit Refinance Program to Help Prince Georges County Homeowners in Danger of Foreclosure
RIVERDALE, Md. (July 29, 2008) Governor Martin OMalley, Prince Georges County Executive Jack Johnson and Maryland Department of Housing and Community Development (DHCD) Secretary Raymond A. Skinner today signed a Memorandum of Understanding to help provide relief to homeowners facing foreclosure. Under the agreement, the State and Prince Georges County will work together to develop a refinanced mortgage credit enhancement program to encourage local banks to refinance loans for individuals subject to foreclosure.
We are very pleased to partner with the State of Maryland on this very important foreclosure initiative. Sustaining homeownership for the residents of Prince Georges County is a top priority for my Administration, Johnson said. There is a foreclosure crisis thousands of homeowners are facing throughout Prince Georges County and Maryland. We must act now and come to the aid of those families that are struggling to keep their homes.
Under the agreement, DHCD will provide $2.5 million, and the county will provide $1.5 million to develop a refinanced mortgage credit enhancement program. This program will encourage local banks to refinance loans for those individuals subject to foreclosure who might require special underwriting criteria. The program will provide mortgage insurance risk coverage against a predetermined top portion of the refinanced mortgage.
In Maryland, property foreclosures soared to 12,849 in the second quarter of Fiscal Year 2008, representing a growth of about 13 percent from the previous quarter and a rise of 214 percent over last year. According to the Notices of Intent to Foreclose for the second quarter of 2008, property foreclosures reached a new high of 3,310 in Prince Georges County, up 3 percent from the data for the last quarter and 186 percent from the second quarter of 2007. Prince Georges County had the highest number of foreclosures in the second quarter statewide, accounting for over 26 percent of all Notices of Intent to Foreclose in Maryland.
Families and individuals facing the possibility of foreclosure should call 1-877-462-7555 or visit www.MDHOPE.org for assistance.