Md. foreclosure prevention program falls short

WASHINGTON -- Foreclosing on a home is never pleasant. The state of Maryland is attempting to ease the burden by offering mediation programs that let homeowners meet with an arbitrator and their mortgage company to help modify loans and come up with a deal.

Maryland's program is now one year old and has not been as popular or as successful as was originally thought. State officials were expecting about 5,000 claims to be filed, but less than 1,000 have been heard.

The Washington Post reports that only 100 homeowners have received a loan modification. Of the 829 closed cases, about 150 people have been allowed to remain in their houses until a final resolution is made. Roughly 120 cases have ended in defaults because homeowners missed their hearings, and 50 people were declared ineligible for the program.

A judge involved with the program tells The Washington Post not enough people know about it, while others don't realize how helpful it can be even if they are already late on payments.

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