New Hope for Unemployed Homeowners

Gov. Martin O'Malley (D), announced a $40 million program to help unemployed homeowners with back mortgage payments. The funds should help homeowners who are facing foreclosure due to job loss or a decrease in wages. The funds come from the U.S. Department of Housing and Urban Development.

According to a RealtyTrac search of the 21012 and 21409 zip codes, there are currently 7 homes listed as pre-foreclosures in Arnold and 10 in the 21409 Annapolis area. In addition, there are 14 bank-owned properties in both areas. That is where the bank will take whatever price they can reasonably get for a home—often less than the amount the bank is owed—in order for the homeowner to be relieved of the property lien or mortgage.

Local Realtor John Collins of Long & Foster said that while the Broadneck area is fairing better than most communities in the county, foreclosures and short sales continue in steady increments. "They are definitely not dominating the market here," said Collins. "But if we show homes in the $300,000 price range, we would find about a third of them being short sales."

O'Malley said that even as we move beyond the fallout of the sub-prime and predatory lending crisis, there are many struggling to make ends meet.

"Thanks to our federal partners, this program will strengthen an important safety net for unemployed homeowners and protect the investment they made in the American dream," O'Malley said.

Applications will be accepted immediately. Information is available at the HOPE website or by calling the program hotline, 877-462-7555.

According to a statement released by the governor's office, the program will provides assistance in the payment of up to 12 months of overdue debt, including delinquent taxes and insurance, and up to 24 months going forward, with a maximum combined total of $50,000.

“This means that homeowners who lost their jobs through no fault of their own will  get the breathing room they need in order to find new employment and get back on track financially,” said Raymond S. Skinner, Secretary of the Maryland Department of Housing and Community Development.

According to the statement, eligible homeowners must meet certain pre-qualification requirements, including:

• Are experiencing a loss of employment income because of the economy or a medical condition.  Homeowner(s) must have a current income that is at least 15 percent less than it was prior to the loss of employment.
• Are  three to 12 months delinquent on their mortgage payments and pending foreclosure. It must be the first mortgage on the principal residence of the homeowner.
• Have a total household income equal to, or less than, 120 percent of the Area Median Income (AMI), including wages, unemployment benefits, and other income.  
• Have a reasonable likelihood (based on industry underwriting standards) of being able to resume mortgage payments within two years, when full employment has been regained.

Overall in Maryland, there are 13,452 foreclosed homes on the market according to RealtyTrac. Of those, 933 homes are in Anne Arundel County.