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Responding to Foreclosure - Maryland Offers Homeowners Legal Defenses to Stop Or Delay Foreclosure



With the rising tide of mortgage foreclosure actions, Maryland has implemented 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 info about alternatives to foreclosure as well as the need for submitting an answer when they are served with a foreclosure complaint.

The newest legal protections went into effect in April, 2008. Among other protections, the newest laws: (a) mandate that lenders give you the homeowner with a written notice of intention to foreclose at least 45 days just before 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) demand the foreclosure court papers be personally served upon the borrower; (d) require lenders to release a notice of sale in a paper at least three times before the foreclosure sale can take place; and (e) give homeowners the opportunity to pay overdue payments up until one day prior to the scheduled auction.

how to short sale Maryland - The goal is to ensure that homeowners receive increased time to explore alternatives. In reacting to foreclosure complaints, homeowners should ascertain whether their lender complied with all the procedural requirements that are new. Where the mandatory notices were not properly served, a homeowner should especially increase the lender's noncompliance to the foreclosure criticism with the law as an affirmative defense in their answer. By declaring the newly accessible affirmative defenses, homeowners might be able to delay foreclosure and motivate lenders to provide non-foreclosure options, like short sales and loan modification.

Formerly the Maryland legislature passed laws requiring lenders to supply specific notice. This law took effect on May 26, 2005 and, among other things, requires that foreclosure notices comprise data and specific warnings.

Maryland short sale expert - As with other states, Maryland experienced record numbers of foreclosures in 2009. Prince George's County and Baltimore County have experienced the highest variety of foreclosures overall. On the other hand, every portion of the state has influenced. These grim statistics reflect the increase in joblessness, large number of high-interest mortgages, and property worth that are crumbling. The most distressed homeowners should file answers when served with foreclosure complaints. Homeowners who answer foreclosure complaints are usually competent to impede the foreclosure process. In many instances, homeowners who've filed replies to foreclosure complaints have discovered that their lenders are somewhat more ready to consider various options, including short sales and loan modifications, that were unavailable previously.

[ http://youtu.be/0Ql5nh6gsE8 foreclosure process Maryland] - Foreclosure answer forms are relatively easy to complete and file with the court, and are available for downloading. A foreclosure reply need not be extended or complicated. The main purpose is to concisely deny those allegations in the complaint which are not true, and also to set forth any affirmative defenses which may be pertinent. These are only some of the affirmative defenses a homeowner should consider maintaining in their response form.