The Current Housing Crisis in Maryland

Powerful Essays
Abstract

The current housing crisis in Maryland has devastated much of the inner city of Baltimore and surrounding counties. The economic collapse of 2008 has left many Maryland residences unemployed or underemployed. The direct impact of the economic collapse has left homeowners wondering how they will pay their mortgages and keep food on the table. Maryland homeowners have been struggling to make ends meet. Some of the issues that are being faced have to do with the predatory lending practices of some mortgage lenders. President Obama signed an agreement to bailout some banks in hope to spare families from losing their homes. Those hopes did not pan out well. There was another bailout of $25 billion dollars allotted in Feb 2012 to help homeowners and reduce mortgages to the principal home values. Thus far the mortgage industry has done as little as possible to hold up their end of that bargain. We need to get educated and hold these predatory lenders accountable.

The Current Housing Crisis in Maryland

By a show of hands, how many people are in a financially challenging situation with paying their mortgage? Do you know that you may very well be a victim of predatory lending practices? You may be asking yourself what is predatory lending. Some of us are familiar with the term. For those who are not, I will explain what a predatory lender is and the effect they have had on our communities. Predatory lenders and the tactics they use to originate loans with unsophisticated buyers are unfair. We now have predatory legal and rescue services popping up everywhere with the defense that they are here to help us. I intend to provide you with information to free legal services and information to assist in the fight to hold the mortgage lenders accountable for what they are doing. I am a Baltimore City resident who is upside down in my mortgage. I owe more on my home than it is worth in today’s market. I am currently in the

You May Also Find These Documents Helpful

  • Better Essays

    Predatory Lending

    • 1215 Words
    • 5 Pages

    In communities across America, people are losing their homes and their investments because of predatory lenders, appraisers, mortgage brokers and home improvement contractors who: Sell properties for much more than they are worth using false appraisals. They encourage borrowers to lie about their income, expenses, or cash available for down payments in order to get a loan and knowingly lend more money than a borrower can afford to repay. The problem has continued to get worse to the point where some lenders charge high interest rates to borrowers based on their race or national origin and not on their credit history. They outrageously charge fees for unnecessary or nonexistent products and services and even pressure borrowers to accept higher-risk loans such as balloon loans, and steep pre-payment penalties. Some lenders shamelessly continue to use high pressure sales tactics to sell home improvements and then finance them at high interest rates.…

    • 1215 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    AD 712 Term Paper

    • 3253 Words
    • 9 Pages

    Predatory lenders typically target minorities, poor, elderly, and less educated people. People who need immediate cash are also targeted. For example people that need to pay medical bills, need to make a home repair, or someone that needs help making a car payment. People with credit issues or people who recently lost their jobs can be targets as well. The credit issues often disqualify borrowers from conventional loans or lines of credit but yet they have substantial equity in their homes. Predatory lending can take place in many forms including payday loans, car loans, tax refund anticipation loans, or any type of consumer debt. Over the past several years, predatory lending practices were prevalent in the area of home mortgages. Since home loans are…

    • 3253 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    The mortgage crisis in the United States over the past few years has been a very traumatic experience for many people. During the mortgage crisis, many lenders were not following the normal government guidelines for issuing mortgages. These include…

    • 1665 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    The real estate industry is thriving with approximately sixty-eight percent of all Americans being homeowners. With low interest rates, 1st time home buyer down payment assistance programs, and government funded educational opportunities (i.e. the Home Ownership Center of Greater Cincinnati), the real estate and mortgage lending industries will continue to flourish. However, there are some unethical lending practices that are threatening the housing industry as a whole.…

    • 3069 Words
    • 13 Pages
    Powerful Essays
  • Best Essays

    Foreclosure Crisis

    • 1262 Words
    • 6 Pages

    The mortgage crisis we are experiencing in the United States today is already ranking as among the most serious economic events since the Great Depression of the 1930’s. Hardly a day goes by without a story in the newspaper or on the cable news stations reporting about the increase in the number of foreclosures across the United States. The effects of this crisis have spread across all financial markets, where in the end all of us are paying a price for this home mortgage crisis. When the housing market collapsed, so did the availability of credit which our economy depends upon. The home mortgage crisis, the financial crisis and overall economic crisis all need to address by the federal government to bring us out of this recession.…

    • 1262 Words
    • 6 Pages
    Best Essays
  • Good Essays

    The housing crisis can be summarized as the over evaluation of house values in the late 90’s and early 2000’s,and shortly there after peoples mortgage debt became larger than the decreasing value of their home come 2006. Sub-prime loans can also be blamed; I will further discuss predatory lending techniques. One type of predatory lending practice that mortgage companies will use is to emphasize the payment. When this happens the lender focuses on a numerical monthly payment that you are able to afford. The down side to this car salesmen like approach, is that the details of the monthly payment can be skewed to hurt you down the road in the future while appearing like a good deal in the near future.…

    • 538 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Jaffe, Dwight M (2008) The US Subprime Mortgage Crisis: Issues Raised and Lessons Learnt. Working Paper No. 28, Commission of Growth and Development, The International Bank for Reconstruction and Development/ The World Bank.…

    • 1746 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    Immergluck, D. (2009). The Foreclosure Crisis, Foreclosed Properties, and Federal Policy: Some Implications for Housing and Community Development Planning. Journal Of The American Planning Association, 75(4), 406-423. doi:10.1080/01944360903124316…

    • 3445 Words
    • 14 Pages
    Best Essays
  • Good Essays

    Current Ethical Issues

    • 907 Words
    • 4 Pages

    “Upbeat Financial Services will be the preeminent provider of low cost mortgage services using state-of-the-art technology in the five state areas of Idaho, Montana, Wyoming, North Dakota, and South Dakota. We thank you in supporting our mission!” Upbeat Financial Services offer their clients the most efficient and effective processing of mortgage applications from beginning to end. Not only do they work with families and individuals that are purchasing properties, but they also service professionals looking for a secondary or a primary residence, and retirees looking to purchase secondary or a primary residence. This wide range of clients could present some ethical dilemmas.…

    • 907 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    From the late 1990s until the mid 2000s, the U.S. housing market experienced a tremendous boom, which ultimately ended up a disastrous bubble. A major change in how lenders provided mortgages led to more money available to non-prime borrowers. Many of these mortgages had unfavorable terms for the borrowers including high interest rates and unaffordable monthly payments. Soon, borrowers were unable to pay their mortgages and were forced to foreclose on their homes. A rise in foreclosures caused a ripple effect through financial markets supported by mortgage-backed securities (MBS), culminating in a worldwide financial crisis.…

    • 517 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    Rise and Fall Housing Market

    • 2385 Words
    • 10 Pages

    The collapse of the housing market had far and wide ranging effects in the economy of the United States. While the effects were felt throughout the country, California, Florida, New York, Michigan, Illinois were dealt devastating blows to their respective economy. Throughout the country, foreclosures rose to staggering numbers and jobs lost were in the millions. This research paper will concentrate on the causes and consequences of the housing crisis and will attempt to determine if there is any fault for not controlling the crisis.…

    • 2385 Words
    • 10 Pages
    Best Essays
  • Powerful Essays

    Mortgage Crisis

    • 1815 Words
    • 8 Pages

    The mortgage crisis that has caused house prices to fall and foreclosures to occur across the United States will create the need to alter the financial mortgage industry policies; as the impact it has can go as far as causing a consumer recession due to the low unemployment rate, rising consumer debt and increasing short term interest rates.…

    • 1815 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Mortgage lenders are required to adhere to a set of guidelines outlined as part of the legislation in the Making Home Affordable package. In some instances they are able to offer a very low 2% interest rate. The money they are losing will be covered by the government's cash incentives as part of this…

    • 568 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Subprime mortgages are generally granted to borrowers who cannot obtain conventional mortgages due to insufficient or delinquent credit histories. These borrowers may be forced to take interest-only loan, which have lower monthly payment but are very difficult to pay off in the end. Problems with mortgage financing are the generally accepted cause of the financial meltdown that occurred between 2007 and 2008 (Gorton, 2009). The Subprime Mortgage Crisis, or "mortgage mess" or "mortgage meltdown," was caused by a precipitous rise in home foreclosures that started in 2006 and spiraled out of control in 2007 and 2008. The excessive use of subprime lending during the housing bubble caused an unprecedented foreclosure fallout, the effects of which caused credit markets as well as global and domestic stock markets to face a major financial crisis (Mayer, 2008). The goal of this paper is to address the subprime mortgage crisis, the effects prior to and after the crisis, and discuss who were the biggest players affected by this crisis. Finally, Team A will provide several concepts learned during the course of this class, which may help ensure that something similar does not happen again in the future.…

    • 2391 Words
    • 7 Pages
    Best Essays
  • Powerful Essays

    II. Introduce Topic: I believe In order to make sure you are choosing the right type of loan that is right for you and meets your financial goals, you must first understand the different types of mortgages available to you and how each one may change your monthly payments in the future. (Psychological personal impact and Economic personal impact)…

    • 1129 Words
    • 5 Pages
    Powerful Essays