Since 2007, the O’Malley-Brown Administration has been committed to ensuring that hardworking Maryland families are treated fairly in the foreclosure process. Maryland has been at the forefront, aggressively combating foreclosure, working to preserve homeownership and stabilizing communities across the State through new laws, free support for homeowners with housing counselors, and pro bono lawyers as well as extensive outreach to families at risk of foreclosure.
Help for Homeowners
For Marylanders facing foreclosure, there is help available.
If you are a homeowner who is late on your mortgage payments or fear
you may become unable to make payments in the near future,
you should contact your mortgage company immediately.
Housing Counseling
HUD-approved, non-profit housing counselors are trained and certified to assist homeowners at risk of or facing foreclosure. Counselors are available to meet face-to-face or via phone to discuss your situation, evaluate your budget for a possible solution, and act as a liaison between you and your mortgage company.
To find a HUD approved, non-profit counselor near you, call the Maryland HOPE Hotline at 877-462-7555 or visit MD
Hope.
Making Home Affordable
President Obama implemented the Making Home Affordable (MHA) program, which will help millions of responsible Americans lower their mortgage payments. For more information about the
MHA program and eligibility requirements, visit:
Making Home Affordable or Financial
Stability.
Help with Utilities
For questions about your utility bills or to seek assistance with disputing bills, visit
The Office of People's Counsel.
Renters Facing Eviction Due to Foreclosure
If you are renting, but know that the home you rent is in foreclosure,
visit
The Public Justice Center.
The Foreclosure Process and Mediation
The Governor has implemented a series of laws in response to
the current foreclosure crisis. Beginning in 2008, with
the passage of the foreclosure and lending reform bills,
mortgage companies are now required to provide more meaningful
notice to homeowners and more time is now allowed for homeowners
to seek assistance and reach a resolution. Under the Maryland
Foreclosure Mediation Law passed in 2010, Maryland homeowners
facing foreclosure can meet, face-to-face, with their mortgage
company to discuss options to avoid foreclosure.
The Foreclosure Process
- Notice of Intent to Foreclose (NOI) is the initial
notice required by law to be sent when you are behind
on your mortgage payments. The Notice will include an
application for loss mitigation (loss mitigation is the
process your mortgage company will go through to review
your mortgage for possible alternatives to foreclosure),
a list of housing counselors available and an envelope
to return the application. THIS IS NOT YET A FORECLOSURE
FILING. A foreclosure action in court may only be
filed against you at least 45 days after this notice was
mailed.
- A foreclosure action (called an Order to Docket-OTD)
must be filed in court in order to move forward with foreclosure
proceedings. It cannot be filed until your loan is 90
days past due, and 45 days after you have been sent an
NOI.
Among other documents relating to the mortgage,
the foreclosure filing will include one of the following
affidavits*:
- Preliminary Loss Mitigation Affidavit (PLMA)
will be filed with the OTD if the mortgage company has
not started or completed the review of your loan for
foreclosure alternatives, known as loss mitigation.
An application for loss mitigation will be included
in the OTD. Complete and return the application within
28 days; OR
- Final Loss Mitigation Affidavit (FLMA) will
be filed if the mortgage company believes it has no
available alternatives to foreclosure or you did not
respond to the PLMA within 28 days. This affidavit will
come with a "Request for Foreclosure Mediation."
You will only have 25 days to request foreclosure mediation
after you receive these documents. To request foreclosure
mediation you must send the completed form with a non-refundable
fee of $50 to the Circuit Court.
* If your order to docket includes a Preliminary
Loss Mitigation Affidavit, open all future mail because
you may receive a Final Loss Mitigation Affidavit in as
soon as 28 days.
Foreclosure Mediation:
You will have the opportunity to request foreclosure mediation after you receive the final loss mitigation affidavit. Foreclosure mediation is a face-to-face meeting with a representative from your mortgage company to discuss any options available to avoid foreclosure. An Administrative Law Judge, at the Office of Administrative Hearings, will mediate the case within 60 days of your request. The judge cannot make decisions, but will act as a neutral third party in an effort to help you and your mortgage company reach a resolution.
TO ACCESS FREE HOUSING COUNSELING SERVICES,
CALL THE MARYLAND HOPE HOTLINE AT
1-877-462-7555 OR GO TO MD
HOPE.
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