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



The laws are intended to: (a) shield homeowners that have been fraudulently induced to enter into high-interest loans; and (b) provide homeowners with information about alternatives to foreclosure and the importance of filing an answer if they can be served with a foreclosure criticism.

The most recent legal protections went into effect. Among other protections, the brand new laws: (a) mandate that lenders give you the homeowner using a written notice of intention 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 publish a notice of sale in a paper at least three times before the foreclosure sale can take place; and (e) give homeowners the chance to cover overdue payments up until one day prior to the scheduled auction.

foreclosure process Maryland - The goal is to ensure that homeowners receive increased time to explore alternatives. In responding to foreclosure criticisms, homeowners should assess whether their lender complied with all the new procedural requirements. A homeowner should expressly increase the lender's noncompliance with all the law as an affirmative defense in their answer to the foreclosure complaint where the required notices are not correctly served. By maintaining the newly available affirmative defenses, homeowners might be able to delay foreclosure and prompt lenders to offer non-foreclosure alternatives, such as short sales and loan adjustment.

Previously, in 2005, the Maryland legislature passed laws requiring lenders to supply specific notice to homeowners regarding their rights in foreclosure actions. This law took effect and, among other things, requires that foreclosure notices include specific cautions and information.

what is short sale vs foreclosure - Like other states, Maryland experienced record quantities of foreclosures in 2009. Prince George's County and Baltimore County have experienced the highest number of foreclosures total. On the other hand, the increase in foreclosure rates has affected every portion of the state. Statewide, foreclosure filings 2009 , in August were up by more than 70% as compared to August, 2008. These dismal figures represent the increase in joblessness, large number of high-interest mortgages, and property worth that are crumbling. Even answers should file when served with foreclosure grievances. Homeowners who answer foreclosure complaints are normally able to impede the foreclosure process. In many cases, homeowners who've filed replies to foreclosure complaints have discovered that their lenders tend to be more willing to contemplate various options, including short sales and loan adjustments, that were unavailable previously.

short sale hardship letter - Foreclosure reply forms are available for download, and therefore are not too difficult to complete and file with all the court. A foreclosure answer will not need to be complicated or extended. The principal function is to concisely deny those allegations in the complaint that are not true, and also to set forth any affirmative defenses that might be appropriate. All these are some of the affirmative defenses to foreclosure a homeowner should think about declaring in their own answer form.