Two key proposals to combat the state?s foreclosure crisis are headed to Gov. Martin O?Malley?s desk after receiving final approval from Maryland legislators Wednesday.
The state Senate cleared proposals establishing mortgage fraud as a crime and banning foreclosure “rescue transactions,” often scams in which homeowners are persuaded into signing over their residences to third parties for debt relief. Identical versions already have won House approval, and O?Malley ? who proposedthe legislation ? is expected to sign both into law.
Other foreclosure legislation nearing final approval include extending the minimum time period between default and the foreclosure sale and requiring counseling sessions before borrowers sign high-risk loans.
The proposal was met with some resistance in the House Wednesday. Some lawmakers said the state may not have enough counselors to handle the new demand.
A lawmaker proposed limiting the mandate to first-time home buyers. That was shot down when Del. Brian Feldman, a Montgomery County Democrat, said 90 percent of adjustable-rate loans are associated with refinancing. A final House vote is required before the proposal is sent to the Senate.
Senators Wednesday approved a measure that would extend the minimum time period between default and the foreclosure sale and require foreclosure notices to be served in person. The process now can unravel as quickly as 15 days, said Gregory Care of the Baltimore-based Public Justice Center.
“Fifteen days is woefully inadequate to protect what really is your most important asset,” Care said. “Right now, you get more notice if your landlord is going to evict you from your apartment.”
