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Maryland homeowners facing foreclosure get $57 million from state

It's no secret that many people in Maryland and the surrounding areas have struggled to meet mortgage payments. Whether defaulted payments came about because of a lost job or serious medical emergency, several homeowners are now facing foreclosure because of it.

Thankfully, Maryland's housing department stepped in at the last minute to help provide some debt relief to residents with the greatest need. The state had nearly $57 million from the federal government that needed to be used by Sept. 30 or returned. According to the Baltimore Sun's report, Department of Housing and Community Development employees literally worked until the last minute to make sure that more than 1,400 homeowners who had experienced a significant drop income or had lost their jobs received loans to help avoid foreclosure.

According the state, the loans are interest-free and forgivable. The emergency loans came from a $1 billion pot that Congress distributed nationwide. The money, however, had to be used by the end of last month or sent back to the federal government. Because Maryland was allowed to run its own loan application program, it was able to open the application process about two and a half months earlier than other states, which did not begin their processes until June.

The U.S. Department of Housing and Urban Development expects that about half of the money that was available to states will end up being sent back to the U.S. Treasury. Maryland was among the few states to use up the money it was given.

Source: The Baltimore Sun, "Md. Makes nearly $57M in emergency loans to homeowners," Jamie Smith Hopkins, Oct. 3, 2011

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