How to Stop Foreclosure in MD

The law in Maryland will only allow a judicial foreclosure process. When a judicial foreclosure takes place, the lender has to file a lawsuit against the borrower. The judge will order a sale or a judgment for the loan balance if the lender wins the lawsuit. If you want to stop a foreclosure in Maryland you should intervene before the judge rules for an order of sale. In the state of Maryland, depending on your situation, you have several options to stop the foreclosure and save your home.

Instructions

1. Call your lender as soon as you miss a payment and negotiate new payment terms. This is called a modification of your loan terms. The sooner you call the easier it is to get the lender to work with you.

2. Contact a bankruptcy attorney. A Chapter 13 bankruptcy will allow you to keep your property by reducing the payments to a price you can afford. In most cases, this will involve extending the number of years on your mortgage.

3. Refinance your property. If your financial situation is the same and your payments have increased, this may be the option for you. You can use your current lender or a new lender.

4. Rent out your property. People who do not qualify for a mortgage can rent your property. Use the rent payments to pay your monthly mortgage.

Tips & Warnings

• A judicial foreclosure can take 45 days. If you plan to stop the foreclosure in Maryland, you should act fast.

• Filing for bankruptcy will hurt your credit, so consider this option carefully.

References

• RealtyTrac: Maryland Foreclosure Laws
• Stopping Banks Foreclosures: Maryland foreclosure procedures, rules and civil codes