The Maryland General Assembly has passed a new law that creates a statewide foreclosure mediation program. This regulation will start to be enforced in the summer of 2010. The program will provide homeowners with an opportunity to meet with their lender and/or bank, an independent mediator, and an administrative law judge. The purpose of this meeting is to help a family keep their home by mediating a solution to their mortgage situation.
Many people cannot get help from their lender when they are struggling with their mortgage payments. After trying many times to contact them, many lenders have not responded. If people cannot get a timely response when they need help, it makes it difficult for them. This can be extremely frustrating for homeowners who are trying to get their mortgage modified. There have been reports of homeowners talking to different people at their bank or lender on the phone when they call, or maybe even worse their paperwork gets “lost” by the lender. This can be extremely frustrating for homeowners who are trying to get their mortgage modified.
Details of Maryland mediation program
The Maryland foreclosure mediation plan requires that, by state law, the lender must send the homeowner an application for a loan-modification, loss-mitigation program, or some other type of assistance program. The notification should say that the homeowner can go to a housing counseling agency to get help. The notification sent by the lender should provide the homeowner with an opportunity to get help with their payments and catching up on any arreage. The notification should say that the homeowner can go to a housing counseling agency to get help. The homeowner must be given at least 45 days notice before a foreclosure action is taken against them in court. This means that the lender will have to pay a $300 fee in order to foreclose on the property, and this fee cannot be charged to the borrower.
In order to determine whether a homeowner is eligible for foreclosure assistance, a loss-mitigation analysis must be completed at least 30 days before the sale of the home.
The homeowner has 15 days to request a foreclosure mediation after receiving the bank or lender’s final loss-mitigation affidavit. The affidavit must state the reasons for denial of a loan modification, if one was denied. The homeowner can request a foreclosure mediation by filling out a form that will accompany the affidavit. There is a charge for this mediation. They can either fill out the form and mail it to the lender’s foreclosure attorney, or they can mail it to the Circuit Court where the foreclosure action was filed. There is a $50 fee required for this. If the borrower agrees to try mediation to solve their housing problem, the Circuit Court process will stop. Perez. This is what Chief Administrative Law Judge Thomas E. Perez said. Dewberry is the head of the Office of Administrative Hearings. This is the office that will mediate the process. The OAH will set up a meeting with all parties involved within 60 days. It takes time to work out the details of the program, including where some of the mediation sessions will take place. The Maryland Office of Administrative Hearings is working on finding different buildings in Circuit Court buildings or other locations that are convenient and centrally located. Many homeowners will probably attend the mediation sessions with housing counselors. They need to also be well prepared, and bring documentation, including pay stubs, financial records, and other documents.The Maryland foreclosure mediation program has been well received. This means that people who are facing foreclosure are coming to the mediation sessions prepared with the necessary documentation, and are finding the process helpful. The organization is happy with the state’s decision to help low and middle income residents keep their homes. They believe the new program will be successful. To apply or learn more about Maryland HUD foreclosures, call 1-877-462-7555 and speak to a foreclosure counselor. To put something into effect To make something happen