Getting a house is always among the best achievements of a lifetime but along with life are some unforeseen challenges that could sometimes threat or even wipe out these achievements. Among them are definitely foreclosure notices. Yes, a piece of paper that could, at most times, break your heart and being. But foreclosure is not an overnight process and before anything is too late, you always can do something about it.
Foreclosure in Maryland
Foreclosure in Maryland is a process that takes many months from the time you miss your first payments to the time you are forced to move out of your home.
Attorney James Logan posits that at each stage of the process, you have options to try and save your home. The most important thing to remember is that the longer that you wait, the fewer options you will have. This is because you are falling further behind on your payments and the foreclosure auction is getting closer.
The foreclosure process begins when you miss your first mortgage payment. Most mortgages are due on the 1st of each month and are considered late after the 15th. Most times, however, you won’t be marked late on your credit report until you are 30 days behind. Once you are 90 days behind, most mortgage companies will start to foreclose on your home. In Maryland, your mortgage company must send you a letter called a “Notice of Intent to Foreclose”.
45 days after sending the Notice of Intent, your lender can file the foreclosure. This is done by going to the Circuit Court for the county you live in and filing a long list of paperwork. Here is a partial list:
A statement of how much you owe on the house.
A certification that you are not on active duty in the military.
A statement of the last payment made and when the Notice of Intent to Foreclose was mailed.
A copy of the Notice of Intent to Foreclose;
Original or certified copy of the mortgage or deed of trust;
Copy of the debt instrument and an affidavit of ownership;
Original or certified copy of the assignment of the mortgage if applicable;
The mortgage lender and originator’s license number if applicable; and
A uniform Notice regarding the filing of the foreclosure action.
Your mortgage company must deliver a copy of all these papers to you before they can move forward. So when you get a big package from the court, you will know that the foreclosure has been formally filed.
When the foreclosure is filed, your mortgage company will also include either a Preliminary Loss Mitigation Affidavit or a Final Loss mitigation Affidavit. If you get the Preliminary Loss Mitigation Affidavit, it means your mortgage company has not reviewed your circumstances to see if you are eligible for any programs to avoid foreclosure. Along with the other paperwork, they will include a Loss Mitigation Application and a description of eligibility requirements, instructions for completing the form, and an envelope with the a preprinted return address.
Mediation can be a very powerful tool when dealing with your mortgage company. If you request it, a date for a hearing will be set and your mortgage company will have to send someone to meet with you face to face. This is an excellent opportunity to get you mortgage company to work with you. Learn more.
Foreclosure can cause your credit score to drop from 200-300 points. In addition, it could take years to qualify for a mortgage to purchase a new home.
Just like any misfortunes, foreclosure in some ways can be prevented. Other than saving and prioritizing your mortgage payment, there are ways to help you avoid foreclosure. The Pendergraft Firm, LLC, on their website, listed ways to do it:
Loan modification. It can be used to modify the original terms of your promissory note to a new agreement. This goal of a loan modification is to lower your monthly payment to a more affordable rate. Generally, the missed payments and are spread out over time. In order to qualify for a loan lenders want to see evidence that you can actually pay them.
Forbearance agreement. With this, your mortgage servicer agrees to reduce or suspend your monthly mortgage payments over a set period of time. Generally, after this period has ended you must resume full payments plus an additional amount to get current on missed payments. Much like loan modifications, lenders want to see that you can actually pay them back
Sell your home. You can sell your house to pay off the loan and stop the foreclosure. If there is enough equity in your house, you may get cash out of the deal. The issue here is whether or not you can sell your home faster than the pending foreclosure sale. In addition, selling your home fast may require a significant discount.
Deed-In-Lieu of Foreclosure. This is where you voluntarily deed the property to the lender in exchange for the release of all mortgage obligations. However, many lenders will try to get you to deed the property back without forgiving the outstanding debt. For this reason, it’s best to hire a qualified attorney to negotiate or review any agreements. Learn more.
Foreclosure is something that is really dreadful and its notices could cause panics. As advised by most lawyers, there are ways of avoiding it, and if you are already in that situation, at least, to ease the burden. Lighten your load with Dependable Homebuyers. Contact us for help that you need!
