June 10, 2011
HOUSE BILL 728
RESIDENTIAL - PROPERTY FORECLOSURE -
REQUIRED DOCUMENTS - TIMING OF MEDIATION
This bill, which was signed into law by Governor
O'Malley and became effective on June 1st, makes certain
changes in the documentation required for notification of
the intent to foreclose owner-occupied residential property
as well as adjustments to the foreclosure mediation process.
The law provides that the order to docket and the complaint
to foreclose forms that are currently being used may continue
to be used until the Commissioner of Financial Regulation
replaces them through the adoption of new forms in regulation.
However, it is important to note that the changes in the time periods in the
foreclosure mediation process became effective on June 1st. The homeowner now has 25 days,
instead of 15 days, after delivery or mailing of the final loss mitigation affidavit to file
with the court a completed request for foreclosure mediation. The Office of Administrative
Hearings may extend the time for completing the foreclosure mediation beyond the current 30-day
limit if all the parties agree. The time for filing with the court the report of the Office of
Administrative Hearings regarding the outcome of the mediation has been extended from
5 days to 7 days after the mediation is held.
Because the currently approved forms contain timelines that include the shorter time
periods, the Commissioner recommends that an addendum be attached to notices mailed after June 1st
advising the homeowners of the additional time period for filing the foreclosure mediation request.