Know Your Rights
- With more and more homeowners facing foreclosure in Maryland, Governor Martin O’Malley
recently signed into law a number of measures to give homeowners protections and
keep them from losing their homes to foreclosure.
- These laws are intended to protect you from fraud, and to give you more time to
find solutions and avoid foreclosure. For many homeowners, the idea of foreclosure
is so devastating that they ignore the situation and until it’s too late.
- If you are having trouble making your payments, or if you’re facing foreclosure,
DON’T WAIT! Contact your lender immediately.
The Foreclosure Process
- On April 4, 2008, Maryland’s new foreclosure process became law.
- Under the new law, your lender must send you a notice of their intent to foreclose
at least 45 days before filing a foreclosure action in court.
- A foreclosure action cannot be filed in court until at least 90 days after you default
on your loan.
- You must be personally served with court papers when the foreclosure action is filed.
If your lender tries to personally serve you the papers but is unsuccessful, the
lender may serve you the papers by posting them on your property and mailing them
by certified mail.
- Your lender must wait 45 days after you are served with the court papers before
selling your home at auction.
- Your lender must publish a notice of sale in a newspaper three times before the
sale takes place.
- You have the right, up until one business day before the auction, to pay any overdue
payments, late fees and charges to stop the foreclosure sale.
Fraud and Scams
- Mortgage fraud is a serious crime in Maryland. Mortgage fraud can include any misrepresentation
or omission of information during the mortgage process. Anyone who commits mortgage
fraud can be fined or sent to jail.
- You have the right to sue those who commit fraud against you during the mortgage
transaction.
- Beware of situations that involve someone advertising, sending an e-mail, or coming
to your door offering a "way out" or "rescuing you from foreclosure." These "rescue
scams" are illegal.
- Example: A person will tell you, the only way to avoid foreclosure is to sign over
the deed to your home. They will say that you can remain in the home as a renter,
and buy it back later. In reality, they strip your home of its equity and stop making
payments. You get evicted from the property and lose your home!
Download this webpage as brochure
SOURCE: Maryland Department of Labor, Licensing, and Regulation