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Responding 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 latest legal protections went into effect in April, 2008. Among other protections, the new laws: (a) mandate that lenders supply the homeowner using a written notice of intent 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) require 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 prior to the foreclosure sale may take place; and (e) give homeowners the chance to cover overdue payments up until one day ahead of the scheduled auction.

[ http://youtu.be/0Ql5nh6gsE8 what does short sale mean] - The aim will be to ensure that homeowners are given increased time to research alternatives to foreclosure. In reacting to foreclosure complaints, homeowners should assess whether their lender complied with all the brand new procedural requirements. A homeowner should particularly raise the lender's noncompliance with all the law as an affirmative defense in their answer to the foreclosure complaint, where the mandatory notices weren't correctly served. By declaring the affirmative defenses that are recently accessible, homeowners may be able to delay foreclosure and inspire lenders to provide non-foreclosure options, like loan modification and short sales.

Formerly the Maryland legislature passed laws requiring lenders to supply special notice. This law took effect and, among other things, requires that foreclosure notices comprise special cautions and information.

[ http://youtu.be/0Ql5nh6gsE8 how to short sale Maryland] - As with other states, Maryland experienced record numbers of foreclosures in 2009. Baltimore County and Prince George's County have experienced the highest amount of foreclosures total. However, the increase in foreclosure rates has impacted every area of the state. Foreclosure filings in August, 2009 were up by more than 70% as compared to August, 2008. These grim figures reflect the upsurge in unemployment, large number of high-interest mortgages, and property values that are crumbling. When served with foreclosure grievances, even answers should file. Homeowners who answer foreclosure complaints are usually competent to slow the foreclosure procedure. In many cases, homeowners that have filed replies to foreclosure charges have discovered that their lenders are somewhat more willing to consider various alternatives, including loan alterations and short sales, that were unavailable previously.

[ http://shortsaleexpertmaryland.com/ebook Maryland short sale Realtor] - Foreclosure response forms therefore are relatively easy to complete and file with all the court, and can be found for downloading. A foreclosure answer will not need to be long or complicated. The principal purpose is to set forth any affirmative defenses which might be applicable, and to concisely deny those allegations in the complaint which are false. In foreclosure cases, answers frequently include these affirmative defenses: (a) the mortgage was entered into fraudulently or in breach of the Truth in Lending Act; (b) the lender failed to comply with appropriate notice periods; and (c) the lender failed to personally serve the foreclosure summons and complaint. These are just a few of the affirmative defenses a homeowner should consider claiming in their response form.