Failing Lender Left Montgomery Village Home in Foreclosure

Maryland homeowners whose mortgages are held by smaller lenders should confirm who services their loan and keep records current.

Updated on Nov. 2, 2026 in Residential

Bold flat-color vector editorial illustration of a single suburban house with a brass key hanging beside its door in generous negative space. — A Maryland homeowner lost his Montgomery Village house in 2010 after the failing bank holding his federal mortgage became unresponsive and foreclosed on the property. AI Illustration. Upload story photo >

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Should a candidate's past foreclosure or tax liens affect your vote for school board?

A bank foreclosed on Omar Lazo's Montgomery Village home in 2010, a property he had bought in 2001 and rented out after moving to Silver Spring in 2007. Lazo, a Montgomery County school board candidate, now faces a rival whose own tax liens have drawn scrutiny.

Why it matters

Lazo's experience reflects the wave of homeowner defaults that hit Maryland during the 2008 recession, when the state ranked 11th-highest nationally for homeowner default in the second quarter of 2010. For Maryland households, the episode shows how a mortgage held by a failing institution can leave a family with little recourse and a foreclosure on their record.

Montgomery County recorded 6,744 foreclosures filed in 2010, and Maryland ranked 11th-highest nationally for homeowner default in the second quarter of that year. The episode dates to a Federal Housing Administration loan on a property Omar Lazo bought in 2001.

The players

Omar Lazo

Montgomery County school board candidate who lost his Montgomery Village home to foreclosure in 2010 after his mortgage-holding bank failed.

Brenda Diaz

Lazo's rival in the Montgomery County school board race, whose tax liens of $5,247 from 2021 and $4,659 from 2022 were reported by Capital News Service.

Capital News Service

University of Maryland student news service that reported Diaz's tax liens in October 2026.

The details

Lazo held a Federal Housing Administration loan on the Montgomery Village home, which he bought in 2001 and lived in until 2007. He cashed out the home's equity that year, bought a Silver Spring house, and rented out the Montgomery Village property. When the bank holding his mortgage went under and became unresponsive, Lazo said foreclosure was the only way the bank would listen to him, and the house was foreclosed in 2010.

2001: Lazo bought the Montgomery Village home.
2007: Lazo cashed out the home's equity, moved to Silver Spring, and began renting out the Montgomery Village property.
2010: A financial institution foreclosed on the Montgomery Village home.
June 2026: Lazo and Diaz finished first and second in the school board primary.
Oct. 27, 2026: Capital News Service reported Diaz's tax liens.

The Home Front

Lazo attributed his 2010 foreclosure to the 2008 recession, the housing bubble's collapse, and the closure of his bank. Maryland's 11th-highest ranking for homeowner default in Q2 2010 places his case within that statewide wave.

If you hold a mortgage through a smaller lender, confirm who currently services your loan and keep a copy of your payment records and loan documents. If you are behind on payments, contact your servicer early and ask about loss-mitigation options, and consider a HUD-approved housing counselor before any deadline arrives.

The takeaway

A mortgage's ownership can change hands or be left with a failing institution, so know who holds your loan and keep your records current. Track any liens or judgments against your property or name, since they can affect both your finances and your standing in public life.