During the summer of 2007, the Governor of Maryland appointed a taskforce to look into the foreclosure crisis. Now that the crisis has worsened (and looks as if the foreclosure crisis is going to get a lot worse before it gets better) it has just released its report.
As reported in The Washington Post, the task force findings include, “[R]equiring lenders to verify that borrowers are able to repay their loans; designating and training a point person in each state’s attorney’s office to prosecute mortgage fraud cases; and prohibiting lenders or mortgage holders from beginning foreclosure action until 90 days after a borrower’s default.”
Would these changes help, or are they just window dressing?
In my opinion, they’re just window dressing. As I discuss in my firm website blog, “Maryland Foreclosure Taskforce Issues Report,” while looking good, the taskforce’s recommendations really don’t change anything.
What do we need? What would really help? In Maryland, adopting less strict timeframes, and requiring that someone who is about to lose their home be personally served with suit papers. On a national level? Adoption of S. 2136 or H.R. 3609, as discussed in bankruptcy attorney Wendell Sherk’s excellent article on the Mortgage Modification bill.
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