In today's economy, foreclosures have become a sad fact of life for many Maryland residents. If you want to avoid having your credit ruined and being turned out of your house by your mortgage lender, you need to know how to stop foreclosure in Maryland. The good news is, it may be easier than you think. This guide will help you to understand the foreclosure process in Maryland and how to stop foreclosure in Maryland at nearly any point in the process.
When Your Payment is Late
In Maryland, your lender has to wait 90 days from when you begin missing mortgage payments to file a foreclosure case. Even sooner—45 days before filing for foreclosure—your mortgage lender also has to send you a “Notice of Intent to Foreclose.” During the time when your payment is late, but before you have received a notice, foreclosure proceedings have not yet begun.
This is the best time to use these strategies for how to stop foreclosure in Maryland. Most lenders understand that borrowers may occasionally have problems paying their mortgage obligation. If you have a temporary financial setback, it may be easy to learn how to stop foreclosure in Maryland from your own mortgage lender, who may offer you a forbearance, which pushes some of your payments back until you'll be able to pay, and a payment plan, which gives you the ability to pay your late payments in small installments once you get back on your feet.
What if I Already Received a Notice?
If you received a notice that your mortgage lender intends to foreclose on your home, you will only have 45 days to stop foreclosure. Advice on how to stop foreclosure in Maryland after the notice has been issued is not terribly different from before it is issued—only now you will be running up against a tight time crunch.
You should definitely talk to your mortgage lender at this point, but if you cannot come to a resolution, it may be time to contact a Maryland foreclosure or bankruptcy lawyer. A lawyer can advise you regarding other options you may have.
One of these options is to simply sell your home. This can be easier said than done, though, and you may have to deal with a “short sale,” in which you sell your home for less than you owe to your lender. Short sales sting your credit, but not nearly as badly as foreclosure.
What About Bankruptcy?
You may wonder how to stop foreclosure in Maryland using bankruptcy. It is true that Chapter 13 bankruptcy will immediately halt the foreclosure process any time before your house is actually sold. However, whether bankruptcy will save your house and lower your payments is up to the judge in your case. You may wish to consult with a lawyer to discuss how to stop foreclosure in Maryland with Chapter 13 bankruptcy.
What if My House is Already Sold?
Unfortunately, after your house has been sold at auction, you can be evicted from your home with no further recourse if the buyer wishes to take possession. Even bankruptcy cannot stop the foreclosure process after the sale has taken place.