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MARYLAND - Maryland is stepping in to help cash-strapped homeowners in danger of losing their homes by entering into a deal with six mortgage service companies.

The goal of the new deal is to help struggling homeowners pay their mortgage so that less Maryland families end up in foreclosure. Delinquency and foreclosure rates have continued to climb across the nation and the state, but often times it's hard for a homeowner to reach their loan agent to discuss alternatives before falling in to foreclosure. The new program will help.

The deal includes a 60-day cooling-off period aimed at saving homeowners from mounting fees and penalties. The extra time also allows Maryland homeowners to meet with mortgage counselors and ensures they have access to help.

The loan service providers have also agreed to follow certain practices when helping borrowers modify their subprime and adjustable-rate loans. The six firms that entered into the deal make up about a quarter of the mortgage loans in the state.

The companies say they are pleased to be a part of the solution for distressed homeowners in Maryland. "It's a little bit more work to follow these guidelines, but again I think it is well worth it and it makes it more efficient but it also helps that we in the business have guidelines to follow," said Tim O'Malley, Amerinational Community Services. "You have to make the first call. We can't make the call for you. You have to reach out and get your own information about your family's income and your mortgage payments about your home," said Gov. Martin O'Malley.

To find out if you qualify for the new program or if your company is one of the six involved, you can call 1-877-462-7555.

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