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Reacting to Foreclosure - Maryland Offers Homeowners Legal Defenses to Delay Or Prevent Foreclosure



With the rising tide of mortgage foreclosure actions, Maryland has executed new legal protections for homeowners. The laws are intended to: (a) protect homeowners that have been fraudulently induced to enter into high-interest loans; and (b) provide homeowners with information about alternatives to foreclosure as well as the significance of filing an answer if they're served with a foreclosure criticism.

The newest legal protections went into effect. Among other protections, the new laws: (a) mandate that lenders provide the homeowner with a written notice of intent to foreclose at least 45 days ahead of filing a foreclosure action in court; (b) require that lenders wait until 90 days after a default in payment before commencing a foreclosure case; (c) require that the foreclosure court papers be personally served upon the borrower; (d) require lenders to release a notice of sale in a newspaper at least three times prior to the foreclosure sale can take place; and (e) give homeowners the ability to cover late payments up until one day prior to the scheduled auction.

[ http://youtu.be/0Ql5nh6gsE8 short sale process Maryland] - The aim would be to ensure that homeowners receive increased time to explore alternatives. In responding to foreclosure grievances, homeowners should ascertain whether the new procedural requirements were complied with all by their lender. Where the required notices weren't correctly served, a homeowner should expressly increase the lender's noncompliance to the foreclosure complaint together with the law as an affirmative defense in their answer. By declaring the just accessible affirmative defenses, homeowners might be able to delay foreclosure and inspire lenders to offer non-foreclosure options, like short sales and loan modification.

Previously, in 2005, the Maryland legislature passed laws requiring lenders to provide special notice to homeowners regarding their rights in foreclosure actions. This law took effect and, among other things, requires that foreclosure notices comprise advice and special warnings.

short sale process Maryland - Like other states, Maryland experienced record quantities of foreclosures in 2009. Baltimore County and Prince George's County have experienced the highest amount of foreclosures total. But, the increase in foreclosure rates has changed every area of the state. These dismal statistics represent the increase in joblessness, large amount of high-interest mortgages, and property worth that are crumbling. The most desperate homeowners should file answers when served with foreclosure grievances. Homeowners who answer foreclosure charges are often competent to impede the foreclosure process. In many cases, homeowners that have filed replies to foreclosure complaints have discovered that their lenders are far more prepared to think about various options, including loan alterations and short sales, that were unavailable previously.

[ http://youtu.be/0Ql5nh6gsE8 short sale hardship letter] - Foreclosure response forms therefore are not too difficult to complete and file with the court, and are available for download. A foreclosure answer do not need to be complex or long. The primary function would be to concisely deny those allegations in the charge which are untrue, also to set forth any affirmative defenses which might be related. In foreclosure cases, replies often comprise these affirmative defenses: (a) the mortgage was entered into fraudulently or in breach of the Truth in Lending Act; (b) the lender didn't comply with appropriate notice periods; and (c) the lender failed to personally serve the foreclosure summons and complaint. These are a few of the affirmative defenses to foreclosure that a homeowner should think about asserting in their response form.