In the Maryland Foreclosure Process
There is a Tool to Mediate the Problem
In recent years, the State of Maryland issued new regulation allowing Maryland homeowners to request for Maryland foreclosure mediation after the mortgage is has received the Notice of Foreclosure Action. Foreclosure Mediation has become an additional resource to discuss each option that may be available.
Mediation is intended to discuss a plan to submit a request for mortgage assistance to possibly allow the homeowner to resolve their mortgage delinquency either through a:
- loan modification
- short sale
- deed in lieu of foreclosure
- cash for keys
- reverse mortgage
- and other options that may be available for their loan
As the process continues to be evaluated and surveys are collected from participates in the mediation hearing, many homeowners are facing more challenges then they may understand after leaving the foreclosure mediation hearing.
Homeowners should consider mediation to understand each available program, the time frames each program may take to complete the review, the investor of the mortgage, whether or not the mortgage is eligible for a making home affordable program, the process of mediation, and the different variations of mediation agreements that can be established.
Many lenders claim the process will only take two to four weeks to complete the review. In this circumstance, homeowners may be under false advice and may have jeopardized their option after the mediation hearing concludes.
Many homeowners believe there will be no foreclosure sale scheduled on the property if the homeowner can submit the list of documentation established at the foreclosure mediation hearing within a period of time.
Helpful tip blog: 10 Best Practices for Preparing a Loan Modification Package
However, homeowners soon find out that their package that was submitted within the time frame discussed in the mediation hearing was not completely received by the lender and the request for mortgage assistance (loan modification, short sale, or deed in lieu of foreclosure) was closed and the foreclosure attorney was notified to schedule a foreclosure sale on the property. The homeowner received a Notice of Foreclosure Sale notifying them of their sale date, time, and location.
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