How to Prevent Foreclosures in Maryland
Timing is essential to saving your home from foreclosure in Maryland --- the foreclosure process happens quickly: According to RealtyTrac, the average foreclosure process takes 46 days in Maryland. Seek assistance at the first sign of trouble making your mortgage payment. There are a variety of solutions to suit nearly every homeowner's unique situation. Even if keeping the home isn't possible, you can still prevent the foreclosure process by utilizing alternative options.
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Call your lender. Notify your lender immediately that you wish to prevent the foreclosure of your Maryland home. Communication is very important, especially because the foreclosure can occur in such a short period of time. If you're current on your loan, inquire about refinancing at a lower interest rate. Homeowners who suffer a hardship may be eligible for a repayment plan or forbearance. Delinquent Maryland homeowners can apply for assistance through the federal Making Home Affordable program. This program modifies loans by lowering the interest rate and extending the length of the loan.
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Participate in foreclosure prevention counseling. Counselors approved by HUD review your loan details and financial data to determine possible routes to prevent foreclosure. The counselors have extensive knowledge of the available programs to prevent foreclosure, such as the Home Affordable Foreclosure Alternatives program. If your lender participates, you may be eligible for relocation funds if you agree to sell the home in a short sale or transfer ownership through a deed in lieu of foreclosure. These alternatives keep the foreclosure from destroying your credit score. Maryland Governor Martin O'Malley launched Home Owners Preserving Equity, also referred to as the HOPE Initiative. The program provides access to counseling for Maryland homeowners. Call 877-462-7555 or visit the HOPE Initiative website (see Resources) to locate foreclosure counseling services near you.
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Request mediation. In 2010, the Maryland General Assembly implemented a statewide foreclosure-mediation program. The lender is required to notify you of your right to request mediation. During mediation, you and your lender meet with a neutral third party to reach an agreeable solution.
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Apply for assistance through Maryland's Bridge to HOPE loan program, which offers loans of up to $15,000 --- as of December 2010 --- to help homeowners remain in their homes while working on a foreclosure solution. The funds can be used either to cover past-due mortgage payments and delinquent taxes or help provide payment assistance for 24 months. The Bridge to HOPE Loans carry a 0 percent interest rate and aren't repaid until the property is refinanced, sold or transferred. All applicants must participate in housing counseling.
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