Foreclosure prevention from Maryland Foreclosure Mediation Program.
The state of MD has a government mandated foreclosure mediation program. The government regulations will provide homeowners with an opportunity to meet face to face with their lender and/or bank, a highly trained and independent mediator, and an administrative law judge in an effort to find a negotiated settlement. Learn more on foreclosure mediation in Maryland below.
The goal of this meeting will be to facilitate a mediation session that will, at the end of the day, allow a family to stop a foreclosure filing, stay in their home, and find a long term sustainable solution to their mortgage situation. The mediation sessions are held locally too to make it convenient, as sessions are held in the local county circuit court.
Details of Maryland mediation program
Unfortunately, various studies indicate that many people just can’t get a response from their lender or mortgage servicer when they are having mortgage difficulties. Even after multiple attempts to reach them many lenders have proven to be unresponsive or not the most helpful. The lack of a timely response makes it difficult for people to get help. There are stories of homeowners talking to different people at their bank or lender on the phone when they call, or maybe even worse their paperwork gets “lost” by the lender.
Under the Maryland foreclosure mediation plan, the lender will be required by state law to send an application for a loan-modification, loss-mitigation program, or some other type of assistance program to the homeowner. The notification by the lender must be something that gives the homeowner a real opportunity to get help with their payments and catching up on any arreage. This notice is required to be sent to the homeowner at least 25-45 days before a foreclosure action is filed in the local court system. Of course the homeowner needs to complete all paperwork in a timely manner.
In addition, a loss-mitigation analysis will need to be completed to determine whether the homeowner is eligible for any type of assistance. This analysis must be done weeks before a foreclosure sale of the home.
Then, within 15 days of receiving the bank or lender's final loss-mitigation affidavit, which will need to state the reasons for denial of a loan modification if one was denied, the homeowner can then request a foreclosure mediation by just filling out a form that will accompany the affidavit. There is a small fee for this mediation. The form and the $50 fee must be mailed to the lender's foreclosure attorney and the Circuit Court where the foreclosure action was filed.
The borrower has a choice in this matter. If the borrower says yes to exploring mediation as a solution to their housing problem, everything will then stop at the Circuit Court level. This is according to the rules set by the Maryland Office of Administrative Hearings. This is the office which will handle the mediation process. The OAH has 60 days to hold a mediation session with all parties. So all of this takes time, and the family can stay in the home as they pursue mediation and work towards a solution.
Most homeowners will probably go to the mediation sessions with housing counselors or a volunteer lawyer from Maryland legal aid. All professional mediators are trained and/or certified by the Maryland Office of Administrative Hearings. The homeowner also needs to also be well prepared, and bring documentation, including pay stubs, financial records, and other documents.
Contact information
The Maryland foreclosure mediation program is offered in all local counties, with legal aid, HUD counselors and local charities also involved. Civil Justice, Inc. (call (410) 706-0174) provides support statewide as well as other organizations as noted above. Dial the HOPE Hotline at 1-877-462-7555, or speak to a Maryland HUD foreclosure counselor in order to apply or learn more.
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