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



With the rising tide of mortgage foreclosure actions, Maryland has executed new legal protections for homeowners. The laws are meant 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 need for submitting an answer when they are served using a foreclosure criticism.

The most recent legal protections went into effect.

[ http://youtu.be/0Ql5nh6gsE8 what does short sale mean] - The aim is always to make sure that homeowners are given increased time to investigate alternatives to foreclosure. Homeowners should assess whether their lender complied with the newest procedural requirements in responding to foreclosure complaints. A homeowner should specifically increase the lender's noncompliance together with the law as an affirmative defense in their own answer to the foreclosure criticism, where the required notices were not properly served. By declaring the just available affirmative defenses, homeowners might be able to delay foreclosure and inspire lenders to offer non-foreclosure options, such as loan adjustment and short sales.

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

[ http://shortsaleexpertmaryland.com/ebook Maryland foreclosure expert] - As with other states, Maryland experienced record quantities of foreclosures. Prince George's County and Baltimore County have experienced the highest number of foreclosures total. But, 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 grim statistics reveal the increase in joblessness, large amount of high-interest mortgages, and crumbling property worth. When served with foreclosure grievances, even answers should file. Homeowners who answer foreclosure complaints are usually competent to impede the foreclosure process. In many cases, homeowners that have filed responses to foreclosure complaints have found that their lenders are somewhat more willing to contemplate various alternatives, including loan adjustments and short sales, that were not made available previously.

what does short sale mean - Foreclosure reply forms can be found for download, and therefore are relatively easy to complete and file with all the court. A foreclosure response need not be extended or complicated. The main function is to deny those allegations in the complaint which are not true, and to set forth any affirmative defenses that might be relevant. In foreclosure cases, replies commonly comprise the following affirmative defenses: (a) the mortgage was entered into fraudulently or in violation of the Truth in Lending Act; (b) the lender failed to comply with applicable notice periods; and (c) the lender failed to personally serve the foreclosure summons and complaint. These are just some of the affirmative defenses to foreclosure a homeowner should consider declaring within their answer form.