MD Comptroller: foreclosures will hit local budgets hard

The effect of the foreclosure crisis will hit hardest at local budgets, according to the state's chief tax official.

And recent emergency legislation passed by the Maryland General Assembly, will have little effect on Maryland's tide of foreclosures. Now, the state's hands are tied, said Comptroller Peter Franchot.

Franchot said he applauds efforts by Gov. Martin O'Malley and the legislature, but that it is too little too late.

"It's not their fault," Franchot said during a recent visit to The Frederick News-Post. "The responsibility for the foreclosure crisis rests with Washington. The last several years of Washington have been like the Wild West. Anything goes. And that lack of regulation has a price that we're going to pay for years to come."

The bill O'Malley signed will lengthen the foreclosure process from 15 to 150 days, and require a lender to wait 90 days before filing a foreclosure action. It also strengthens prohibitions on mortgage fraud

According to the governor's office, in the fourth quarter of 2007, Prince George's, Montgomery, Washington and Worcester counties saw foreclosures double from previous quarter.

In other counties, such as Kent, Garrett and Somerset, numbers almost tripled.

Maryland saw 9,722 foreclosures, compared to 7,001 in the previous quarter, an increase of 2,721 foreclosure events statewide.

Local revenue will be particularly hit in 2009 and 2010, Franchot said.

"We're in a real mess," he said.

Copyright 2008 The Frederick News-Post. All rights reserved.

The effect of the foreclosure crisis will hit hardest at local budgets, according to the state's chief tax official.

And recent emergency legislation passed by the Maryland General Assembly, will have little effect on Maryland's tide of foreclosures. Now, the state's hands are tied, said Comptroller Peter Franchot.

Franchot said he applauds efforts by Gov. Martin O'Malley and the legislature, but that it is too little too late.

"It's not their fault," Franchot said during a recent visit to The Frederick News-Post. "The responsibility for the foreclosure crisis rests with Washington. The last several years of Washington have been like the Wild West. Anything goes. And that lack of regulation has a price that we're going to pay for years to come."

The bill O'Malley signed will lengthen the foreclosure process from 15 to 150 days, and require a lender to wait 90 days before filing a foreclosure action. It also strengthens prohibitions on mortgage fraud

According to the governor's office, in the fourth quarter of 2007, Prince George's, Montgomery, Washington and Worcester counties saw foreclosures double from previous quarter.

In other counties, such as Kent, Garrett and Somerset, numbers almost tripled.

Maryland saw 9,722 foreclosures, compared to 7,001 in the previous quarter, an increase of 2,721 foreclosure events statewide.

Local revenue will be particularly hit in 2009 and 2010, Franchot said.

"We're in a real mess," he said. (The Frederick News-Post. All rights reserved)