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Since the national foreclosure crisis began in 2007, Maryland has been
at the forefront of efforts to combat the crisis and preserve
homeownership. Through a package of new laws and regulations, resources
for housing counselors and recruitment of pro bono lawyers, extensive
outreach and other efforts, Governor O'Malley has aggressively worked to
save Marylanders' homes.
Help for Homeowners
For Marylanders facing foreclosure, there is help available.
Homeowners who are late on their mortgage payments or fear they may
become unable to make payments in the near future should contact their
lender immediately.
President Obama recently announced the Making Home Affordable
program, which will help millions of Americans lower their mortgage
payments so they can stay in their homes. For more information and to
find out if you are eligible, visit Making
Home Affordable.
Homeowners can also call the Maryland HOPE Hotline at 1-877-462-7555
to get assistance from a housing counselor or legal as or visit MD
HOPE.
The Foreclosure Process
Among the laws signed last year by Governor O'Malley to combat
foreclosures was a new, extended foreclosure process designed to give
homeowners more time and notice ahead of a foreclosure.
- Under the new law, your lender must send you a Notice of Intent to
Foreclose at least 45 days before filing a foreclosure action in
court.
- A foreclosure action cannot be filed in court until at least 90
days after you default on your loan.
- You must be personally served with court papers when the
foreclosure action is filed. If your lender tries to serve you the
papers in person but is unsuccessful, the lender may serve you the
papers by posting them on your property and mailing them by
certified mail.
- Your lender must wait 45 days after you are served with the court
papers before selling your home at auction.
- Your lender must publish a notice of sale in a newspaper three
times before the sale takes place.
- Your have the right, up until one business day before the auction,
to pay any overdue payments, late fees and charges to stop the
foreclosure sale.
If you are late on your mortgage payments and are in danger of
foreclosure, be sure to contact your lender immediately and seek help
through the Maryland HOPE Hotline, at 1-877-462-7555, or President
Obama's Making
Home Affordable.
Avoid Becoming a Victim:
Mortgage Fraud and Scams
The foreclosure crisis has led to an increase in foreclosure-related
scams, including those that involve so-called loss-mitigation
consultants and foreclosure rescue consultants.
If you are a victim of a loan modification scheme or
any other form of mortgage fraud,
call the Office of the Commissioner of Financial Regulation at
1-888-784-0136.
Maryland law is designed to protect homeowners from unscrupulous
individuals wishing to take advantage of those in danger of losing their
homes. KNOW YOUR RIGHTS!
- There is never a fee to get assistance or information about
the "Making Home Affordable Plan" from your lender or a
HUD-approved housing counselor. Approved, non-profit counselors can
be accessed through 1-877-462-7555.
- Beware of any person or organization asking you to pay up-front
fees in exchange for providing mortgage counseling services or
modification of a delinquent loan. Do not pay - walk away!
- Do not believe guarantees. A reputable counselor will not
guarantee that they can stop the foreclosure process, regardless of
your circumstances. Working with a legitimate counselor can
certainly increase your chances of keeping your home -- but be wary
of people who promise a sure thing. Again, first get the details of
your transaction and any related promises in writing before you
enter into an agreement.
- Beware of anyone who says they can "save" your home
if you sign or transfer over the deed to your house. Do not sign
over the deed to your property to any organization or individual
unless you are working directly with your mortgage lender, or with
your attorney.
- Never submit your mortgage payments to anyone other than your
mortgage lender without your mortgage lender's approval.
- If it sounds too good to be true, it probably is. If you
feel you may be the target or victim of a mortgage modification scam
or of foreclosure fraud, trust your instincts and seek help. Call
the Office of the Commissioner of Financial Regulation at
1-888-784-0136. For tips on spotting scam artists, visit the Federal
Trade Commission's website on foreclosure rescue scams.
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