Housing Crisis Agreement

As families across the nation and in Prince George’s continue to struggle in the aftermath of the mortgage meltdown, state and local officials have stepped up to bring relief to those in need.

County Executive Jack Johnson and Gov. Martin O’Malley announced a partnership that would offer help to those on the brink of foreclosure.

Prince George's County Executive Jack Johnson said we must act to aid families in danger of losing their homes.

“It’s our turn to help expose our young people to the big opportunities that events like these have to offer,” he said.

The agreement, which also includes the Maryland Department of Housing and Community Development under Sec. Raymond Skinner, will spur the development of a refinanced mortgage credit enhancement program to encourage local banks to refinance loans for individuals facing 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 George’s County is a top priority for my administration,” said Johnson in a recent statement. “There is a foreclosure crisis thousands of homeowners are facing throughout Prince George’s County and Maryland. We must act now and come to the aid of those families that are struggling to keep their homes.”

“The State of Maryland is committed to partnering with our local jurisdictions to provide relief and offer solutions to homeowners at risk of foreclosure,” said O’Malley. “As a state, we have made great strides in protecting Maryland homeowners from foreclosure, but we can and we must do more. Today’s agreement will give Prince George’s County another tool to help distressed homeowners, and will help sustain homeowners through these difficult times.”

According to county officials, the department of housing and community development will provide $2.5 million, and the county will provide $1.5 million to fund the program. Officials say the effort will encourage local banks to refinance loans for those facing foreclosure and who may require help restructuring their loan.

Johnson, with Governor Martin O'Malley, signing the Memorandum of Understanding between the State and Prince George's County that can assist 266 families under the Prince George's County HOPE Mortgage Refinance Initiative.

Additionally, the program will provide mortgage insurance coverage against a portion of the refinanced mortgage. Earlier this year, a similar agreement was signed between the State and Montgomery County to help aid Montgomery County residents facing foreclosure.

“Partnerships with local governments like Prince George’s County is critical to implementing successful foreclosure prevention efforts,” said Skinner. “Working together with County Executive Johnson, we will continue to support homeownership counseling efforts and provide more refinancing options to Marylanders.”

Across the state, foreclosures rose to 12,849 in the second quarter of fiscal year 2008, marking a jump of about 13 percent from the previous quarter and a rise of 214 percent over last year, county officials said.

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 George’s, up 3 percent from the last quarter and 186 percent from the second quarter of 2007. Prince George’s 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.