Councilwoman’s Foreclosed Property In Focus Of Attention

Reports coming in from Salisbury say that Shanie Shields, a City Councilwoman is about to lose her house on Delaware Avenue for the same reason as many other foreclosure victims – inability to keep up with ballooning interests. Her deceased husband Jim had taken a risky loan with 11% interest to refinance the property. But payments suddenly tripled. The bank foreclosed and set it rolling on towards auction. Shanie is unhappy – to say the least – about the 11 room estate being sliced into apartments.

Since 2005 Maryland foreclosures have been skyrocketing. Coupled with a slowdown in the real estate market things have become grim. Across the state about 11,000 loans had slipped into foreclosure as per reports coming in. The intensity varies from one locality to another. Lower Shore region is slightly better off but that does not mean it is immune to the foreclosure virus. Alarm bells are ringing in Sussex, Wicomico and Worcester says Doug Marshall who is the president of auctioneers Marshall Auction and Marketing Co. Inc. It is estimated by them that there has been 30% increase in foreclosed units with 60 properties in auction in 2007 in Salisbury. Marshall sadly comments that ‘a foreclosure is terrible for everyone involved.’ The borrowers lose their house and the lenders cannot get back the full loaned amount. The auctioneer gets a fixed $250 from Wicomico County – an amount that does not make up for the negative aspects of auctions.

In Wicomico there were 41 affected properties. It stood 11^th as regards foreclosure numbers. Worcester’s position was 19^th with 17 properties in foreclosure.

As a fall out of this foreclosure crisis the lenders are tightening their strings as regards mortgage. This reduces the number of potential buyers and affects real estate market where there are more houses than buyers, says Cassie Meade of Coastal Association of Realtors representing Lower Shore.

The Governor of Maryland, Martin O’Malley refers to the increasing foreclosures as an ‘unprecedented crisis’. He suggests many legislative remedial measures. The borrower must be notified well ahead about rise of interest. Current 15 days is to be increase to a minimum of 15 days. The sub-prime market is to be focused on for granting loans ad lib to all and sundry. From henceforth no loans should be given without income proof. A state fund would provide interest free loans to help foreclosure victims.

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