Photo by Doug Koontz Ellen Scrivens reminisces about the house that she lost due to foreclosure last August that is located off Burning Bush Drive.
	SUBPRIME LENDING & FORECLOSURES Homeowners around the nation are struggling to make mortgage payments, and Frederick County is no exception. The map below show the area with the lowest and highest concentration of subprime mortgage loans. Click the map for a larger image. SEARCHABLE DATABASE Search the list of foreclosures filed in Frederick County Circuit Court from Jan. 1 to March 18, 2008. BIZ BLOG Business editor Cliff Cumber blogs about the project. Click here to check out his blog. THE ECONOMY & ME This new online-only section houses all sorts of stories that come our way on the economy, as well as tips consumers can use to stretch their dollar a little bit further. Click the graphic to go to the section. RELATED STORIES Foreclosure: A far-reaching problem Published on May 04, 2008 Ellen Scrivens reminisces about the house that she lost due to foreclosure last August that is located off Burning Bush Drive.more » Getting hit from all sides Published on May 04, 2008 In 2006, 455 foreclosures were filed in Frederick County Circuit Court. In 2007, that number more than doubled to 1,025. more » Officials seek to help foreclosure victims Published on May 04, 2008 People facing foreclosure, or who know someone who is, will have the opportunity Monday night to hear from someone who can help. more » Comptroller: state efforts to stem Published on May 04, 2008 The effect of the foreclosure crisis will hit hardest at local budgets, according to the state's chief tax official. more » Borrowers' euphoria clouded subprime risks Published on May 04, 2008 People were so happy to be in a home that the risks of the subprime loans they signed up for went right over their heads. more » Budgeting measures may protect county from foreclosure trouble Published on May 04, 2008 With conservative budgeting, Frederick County is prepared financially for effect from the local economy caused by the foreclosure crisis. more » Signs of trouble Auctioneers saw dangers of subprime loans coming Published on May 04, 2008 Auctioneers saw it coming. They knew the subprime loan frenzy would cause many homeowners to mortgage their futures. more »

She refinanced with an interest-only loan, lost her job two months later and then, in August 2007, her Frederick home. Attempts to reconcile with the mortgage company proved futile, she said.

Making matters worse, Scrivens said that when she closed on the refinancing, she was assured her monthly payment of close to $2,000 would include taxes and insurance. It didn't.

"I could handle $2,000 until I lost my job. I was unemployed for six months because it took a while to find work that would pay me what I was accustomed to," Scrivens said.

Scrivens found her way to the Frederick County Action Agency, which runs a program to counsel people facing foreclosure. Joe Baldi, a former alderman and mortgage broker, took on her case.

"He has been basically helping me to feel my way through this," Scrivens said.

A number of people contacted for this project by The Frederick News-Post declined to be interviewed. Many were embarrassed by their situation.

"It's humiliating. We live in the same community, and with family and friends knowing about your business is humiliating," one woman told a News-Post reporter.

Baldi and colleague Brad Petersen are on the front lines helping to keep people from losing their homes.

The two counselors are seeing more and more property owners having trouble keeping their homes.

"And there's no light at the end of the tunnel in the near term," Baldi said.

The number of people who apply for housing assistance through the FCAA program has doubled every quarter, going from 12 people in the third quarter, to 24 in the fourth and 48 in the first quarter, Baldi said.

"And they are just the ones that are showing up to us," Baldi said. "A lot more people are in this situation."

Government's mistake

Frederick Realtor Keith Patterson attributes the real estate debacle that is forcing millions out of their homes to bad government policy.

"They closed their eyes, knew what was happening and didn't think it would go wrong, and it did," Patterson said.

The policy allowed the banks to require a minimal down payment on a mortgage, Patterson said.

Lenders used an 80-10-10 financing scheme, meaning, they asked for 80 percent on the first mortgage, 10 percent on the second mortgage and 10 percent on the third mortgage, or an 80-20 arrangement. The second and third mortgages were at much higher rates -- 10 percent to 15 percent, Patterson said.

"They should've qualified the people for the higher rate on the first mortgage, not the low introductory rate," Patterson said.

The housing dilemma became an industry problem when the lenders couldn't sell these mortgages to Wall Street, Patterson said.

Even the state's top tax official, Comptroller Peter Franchot, believes culpability rests with Congress.

"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," he said in a recent interview at The News-Post.

Help available

Petersen and Baldi would like to see people before they enter foreclosure proceedings.

All of the housing services on offer are free to Frederick County residents, Petersen said.

"As soon as there's an issue with payment, people should call," Petersen said. "They may qualify for a certain program but delay could make them ineligible."

Baldi said Maryland started a program in January that assists people who qualify with $7,000 to $15,000 -- money that can be used toward their back payments and help keep credit scores up for possible refinancing.

"We can't save everybody, we can't fix everything, but working together, we can help," Baldi said.

The state program -- Bridge to Hope -- offers a narrow window of opportunity for people who qualify, Baldi said.

"You can't be in foreclosure (proceedings) or too far in arrears, and the money is used to bring you back on your feet to maintain your house by yourself," Baldi said.

Another state-sanctioned program -- The New Lifeline Refinance Mortgage Program -- helps people refinance to a lower interest rate before they start having trouble making payments.

Each program has qualifying criteria that must be met, Baldi said.

The programs are not only limited to victims of predatory lending, Baldi said. Some people may need assistance if one family member lost a job and may need temporary help, he said.

"The idea is to avoid going into foreclosure, but sometimes it will not work either," Baldi said. "In that case, you talk to a lawyer to see which is a better option -- bankruptcy or foreclosure."

Not just mortgage problems

Frederick attorney John Sica has seen a number of foreclosure cases. Not all of them are related to subprime lending.

"Most of the people who come to me are facing foreclosure, are in arrears on their mortgage and want help on what to do," said Sica, who specializes in real estate law and serves on the boards of nonprofit agencies that deal with housing issues.

One lady lost her home for nonpayment of Homeowners Association dues, Sica said.

Sica's clients Brenda and Jonathan Conover were foreclosed on because their mortgage company believed that their home had no fire insurance even though their insurance company provided proof of insurance. The case is still not resolved.

"The whole thing has been very humiliating to have your home advertised for sale that you have had since 1983 and to have your credit destroyed overnight," Conover said. "It's difficult trying to sleep at night."

In other cases, people said they did not receive notice that foreclosure action was pending, Sica said.

"In a lot of cases, these people are nervous, they feel they've lost control," Sica said. "Some people see the mail and put it all in one pile."

Sica testified in October before a Maryland Senate committee on the foreclosure debacle.

A lender can easily and speedily initiate foreclosure proceedings, Sica said, but it is burdensome for the owner to stay the transaction.

"A lender can begin a foreclosure by merely having an Order to Docket suit filed, and it is given an administrative and in practice, judicial presumption of correctness," Sica wrote to Maryland General Assembly lawmakers. "The homeowner always has an uphill battle in that the burden is on them both to prove the lender's error and to convince a court of the need to intervene."

Not afraid to speak

Unlike the reticence shown by other homeowners, Scrivens wanted to speak out.

"My issue is I've already lost my home and I want to alert other homeowners about the tax repercussion they may not be aware of," Scrivens said. "I have not seen anywhere, in any publication, where that fiasco is being addressed."

Her foreclosure on Aug. 22, 2007 didn't end her troubles. Scrivens said the mortgage company sent her the wrong tax form that inflated the value of the house, leaving her "with all kinds of tax problems."

Scrivens said she has discussed her predicament with mortgage experts and a local attorney.

"God is at work here and I'm just an instrument to help other people, and that allows me to feel strong and not give up," she said.

Scrivens is hoping that a lawyer "with a lot of courage" could file some sort of class action lawsuit.