Maryland Foreclosure – Learn More About the Foreclosure Process

If you are in a foreclosure situation in Maryland, you might want to know the details of the foreclosure process in the state. As with any legal matter, it is a good idea to consult an attorney to help you through the process.

Summary of Maryland’s Foreclosure Process

If you’ve fallen behind on your home loan in Maryland, there are steps you can take to prevent foreclosure and save your property. A good place to start is by learning more about the foreclosure process.There are two main types of foreclosure, judicial and nonjudicial. The first is a more formal and legal process involving a lawsuit and a court. Nonjudicial foreclosures, on the other hand, have little to no court involvement.

Foreclosures in Maryland are governed by state and federal laws. These laws help lenders and borrowers to comply with the law without overstepping their bounds.You can avoid a foreclosure by paying your balance off in full one business day before the sale. In some states, this is called redemption.Foreclosures are usually the result of borrowers falling behind on their mortgages. However, they may occur for other reasons. Depending on the circumstances, you may be able to obtain a short sale, or negotiate the terms of your loan.

You may also be able to apply for a loan from the Homeowner Assistance Fund. This program offers grants of up to $10,000 to eligible homeowners to help pay their mortgages.Another important component to any foreclosure process is the deed of trust. Deeds of trust give borrowers a set of contractual rights and protections.

Financial Regulation

The foreclosure process in Maryland is governed by the Real Property Article of the Code of Maryland. Besides statutory rules, the Office of the Commissioner of Financial Regulation oversees mortgage lenders and money transmitters.In 2011, the Enforcement Unit of the Office of the Commissioner of Financial Regulation initiated 264 investigations of alleged violations of Maryland laws, including mortgage fraud. The unit investigates complaints from consumers, and also works to ensure compliance with regulatory and law enforcement agency regulations.

In the aftermath of the financial crisis, the Office of the Commissioner of Financial Regulation worked to mitigate damage to the banking system and to help protect consumers. It was central to the recovery and was instrumental in ensuring a safe banking system and mitigating the impact of the mortgage delinquency crisis.

Before sending a Notice of Intent to Foreclose (“NOI”) to a homeowner, a lender must give the homeowner at least 45 days notice. This notice must contain information about how to avoid scams, free help, and other resources.If the homeowner does not respond within the designated timeframe, the lender will initiate a judicial foreclosure. A judge will order the home to be foreclosed and sold at an auction.

Notice of Intent to Foreclose In Maryland

In Maryland, homeowners who are behind on their loans are notified of their potential foreclosure by a Notice of Intent to Foreclose. The document contains important information, like the number of days until your mortgage will be cancelled and the name of your current servicer.

In order to avoid the foreclosure process, you may choose to reinstate your loan or file for a short sale. If you cannot afford to keep your home, you should consider filing for bankruptcy. You should seek the advice of an attorney to determine what your best options are.A deed of trust is a legal document that gives you contractual rights to your property. Its primary purpose is to protect your interest in the home.

A notice of intent to foreclose is a legal document that is required by law. Depending on the type of loan, it can have different requirements.It must include a loss mitigation application and mediation information. There may be a separate addendum, too.During the foreclosure process, there are many documents that you will receive. They can be hundreds of pages long. Some are more important than others. These documents make it hard to keep up with all of the rules and deadlines.

Order to Docket

There are many different steps to the foreclosure process in Maryland. The first step is when the lender files the Order to Docket with the court.The Order to Docket is a formal request for the judge to order a foreclosure sale. After the judge orders the sale, the mortgage company will sell the property at auction.

If you’re a borrower, you may have heard of the concept of “reinstating.” This means that you’ve paid the overdue amount and fees to stop the foreclosure.Typically, you sign a deed of trust. These deeds give you legal protections in the event of a loan default. When you’re behind on your payments, your lender will file an Order to Docket with the court. You have the right to challenge the foreclosure, though.

Before you can challenge the foreclosure, you must complete a Loss Mitigation Application. It’s important to take this step because you’ll receive a final determination about your loss mitigation options.After you’ve completed the application, you will have about 15 days to file a motion to dismiss or stay the foreclosure. Your attorney or a housing counselor can help you with this step.A lender can also ask the court to waive the requirements to foreclose in some situations. For instance, if the homeowner is in military service, the lender must certify that the home is not being used by the military.

Foreclosure Mediation

Foreclosure mediation is a procedure that helps homeowners negotiate with their lenders to prevent foreclosure. It is a confidential process involving a neutral third party that helps the parties reach a mutually beneficial solution.Maryland’s proposed Foreclosure Mediation program is welcome news for Maryland homeowners who find themselves in a tough economic situation. However, the program is not without its limitations.

The proposed program will only provide homeowners with two opportunities to negotiate with their lenders to avoid foreclosure. These opportunities will take place before and after the foreclosure sale.A Request for Mediation form must be submitted to the Circuit Court in the county or city where the foreclosure action is filed. This form must be accompanied by a fee of $50.

If the homeowner is not able to pay the fee, they may ask the court to waive the fee. Alternatively, they can send the form and supporting documents to the court website.Homeowners have 25 days from the date they receive the Final Loss Mitigation Affidavit to file a request for foreclosure mediation. After they have completed the form, they should schedule a time to meet with a mortgage company representative.Mortgage companies will then explain the various programs available to homeowners. They might be able to offer a short sale, loan modification, rent back, or other alternatives to foreclosure.

Foreclosure Sale and Eviction

If you’re facing foreclosure on your Maryland property, it’s a good idea to understand your rights and what you can do to prevent eviction. In addition, you may want to seek help from an attorney.In Maryland, the state legislature has adopted several laws to protect homeowners in the event of a foreclosure. They include the Protection of Tenants at Foreclosure Act, which alerts tenants about a possible foreclosure. It is also required that lenders notify all parties in the home at least ten days before a sale.There are three types of notices a tenant can receive in this situation. The first notice is the Protecting Tenants at Foreclosure Act notification. This is sent in tandem with the complaint to foreclose. A second is the writ of possession, which is a document that allows the lender to remove you from the home.

Finally, there is the Maryland foreclosure sale, also known as a foreclosure auction. When this occurs, a home is sold at a public auction.Depending on the court schedule, it may take as little as fifteen days to get the auction off the ground. However, some states offer redemption periods, which let you buy back your home from the lender.

Get help from an attorney In Maryland

If you are in foreclosure in Maryland, you should seek help from an attorney to help you understand your rights. A qualified attorney can assist you with everything from how to stop foreclosure to how to file for bankruptcy.Foreclosure mediation is a process in which a neutral third party helps the homeowner and lender work through their differences. The goal is to ensure both sides make a reasonable argument and find an acceptable solution.

In Maryland, the Foreclosure Mediation Law takes effect on July 1, 2010. This law provides a new way for homeowners to meet with their lenders and find an alternative to foreclosure.Before you start the process of foreclosure, you should contact your mortgage company to determine what programs they offer. They will usually send a package of information to you that you need to review. Some information will include a program that will allow you to rent back a portion of your home, or a program that will allow you to pay off the loan in full before a foreclosure sale occurs.You will also receive a “Request for Foreclosure Mediation” form to fill out. Once you have completed the form, you must send it to your lender’s attorney. If your’e going through the maryland foreclosure process call us for assistance.