Maryland’s Real Estate Laws for Foreclosure Prevention

Maryland's real estate laws offer various protections and options for homeowners facing foreclosure. Understanding these laws is crucial for homeowners who wish to prevent foreclosure and retain their properties. Below, we delve into the essential aspects of Maryland’s foreclosure prevention laws.

1. Understanding the Foreclosure Process in Maryland
In Maryland, the foreclosure process is primarily non-judicial, meaning it can progress without court intervention. This process begins once the homeowner has defaulted on their mortgage payments, typically after 90 days of missed payments. After this period, the lender must notify the homeowner and provide an opportunity to remedy the situation.

2. Notice Requirements
Maryland law mandates that the lender must send a Notice of Intent to Foreclose. This notice informs the homeowner about the impending foreclosure and allows them the chance to address their missed payments. The notice must be sent at least 45 days before the foreclosure action is initiated, giving homeowners ample time to explore their options.

3. Right to Cure
Homeowners are granted the right to cure their default. This means that they can pay off the missed payments along with any fees and other required costs to bring their mortgage current. This right can be exercised even after the initiation of the foreclosure process until the property is sold.

4. Mediation Program
Maryland has established a mediation program designed to assist homeowners facing foreclosure. This option allows homeowners to work directly with their lenders to explore alternatives to foreclosure, such as loan modifications or repayment plans. Homeowners must request mediation within 15 days of receiving the foreclosure notice.

5. The Role of Housing Counseling
Homeowners are encouraged to seek the assistance of HUD-approved housing counselors. These professionals can provide guidance on avoiding foreclosure, help in negotiating with lenders, and offer financial planning advice. Maryland law supports access to these resources to empower homeowners in distress.

6. Bankruptcy as a Foreclosure Prevention Tool
Filing for bankruptcy can also serve as a strategy for homeowners to prevent foreclosure. Under Chapter 13 bankruptcy, homeowners can restructure their debt and potentially keep their home. However, this option requires careful consideration and legal advice to understand the implications fully.

7. Sale of the Property
Should foreclosure proceedings continue, the property can be auctioned off. Homeowners in Maryland have a right to receive proceeds exceeding the amount owed on the mortgage from the sale. This again highlights the importance of staying informed about the rights and options available throughout the foreclosure process.

8. Post-Foreclosure Rights
Once a property is sold at a foreclosure auction, homeowners still have rights. They have a period known as the “redemption period,” during which they can reclaim their property by paying the purchase price plus fees. It's essential for homeowners to be aware of these rights to better navigate the foreclosure landscape.

In summary, Maryland's real estate laws provide several avenues for homeowners to prevent foreclosure. From mandatory notices to mediation programs, these laws aim to protect homeowners from the negative impacts of losing their property. Homeowners facing difficulties should stay informed of their rights and consider seeking professional assistance to explore all available options.