Foreclosure Help for Homeowners - Financial Regulation

If you know that you will be unable to afford your mortgage payments soon or if you’re already in default and facing foreclosure, you may be feeling scared, ashamed and unsure of what to do. Keep reading for tips and resources. Please don't wait - start now to have the best chance of avoiding foreclosure.

Contact Your Mortgage Servicer

Your mortgage servicer is the company that receives and processes your mortgage payments. The servicer is also responsible for evaluating your financial options for avoiding foreclosure. Your mortgage servicer may not be the same company as your original lender – it’s common for mortgage loans to be transferred to new servicers from time to time.

You must communicate with your mortgage servicer to avoid foreclosure. Don't wait to ask for assistance.

• Call your mortgage servicer and ask what options are available to you to avoid foreclosure. The sooner you call, the more options you’ll have. You may need to submit a “Loss Mitigation Application” and provide documentation for your income, household budget, and financial hardship.
• Stay in contact with your mortgage servicer. Respond quickly to mail, email and phone calls. Make sure the servicer has your correct mailing address and phone number. If your servicer does not hear from you they will deny your application for assistance and proceed with foreclosure.
• Do not send a partial mortgage payment without a written agreement from your mortgage servicer in place first. Partial payments may not bring your loan out of default or prevent foreclosure.
• Do not skip payments if you can still afford your monthly amount. Intentionally defaulting on your loan when you are not suffering a financial hardship will negatively affect your credit and impact your eligibility for mortgage assistance in the future.
  

Know Your Rights

If you are a Maryland homeowner facing foreclosure:

• You have the right to receive timely answers and a prompt response from your mortgage servicer after you ask to be evaluated for options to avoid foreclosure.
• You have the right to be informed by your mortgage servicer of all your options for avoiding foreclosure after you ask for assistance.
• You have the right to receive an accurate copy of your payment history, if you request it from your mortgage servicer.
• You have the right to foreclosure mediation with your mortgage servicer or their representative if you live in your home and you have received a “Final Loss Mitigation Affidavit”. The opportunity to request mediation occurs at a late stage in the foreclosure process, so do not wait until mediation to ask for help. Learn more about foreclosure mediation.
• If you are a government employee (federal government, Maryland state government, or a local government in the State of Maryland) and you have been involuntarily furloughed from work without pay due to a government shutdown, then you may qualify for a temporary pause in the foreclosure proceedings, pursuant to Maryland law [see Real Property §7-105.1(b-1) ]. You must provide sufficient evidence to the court handling your foreclosure case. Contact the Maryland Court Help Center or a legal services agency for assistance.
  

Help is Available!

Call the Maryland Homeowner Assistance hotline at 1-877-462-7555 for a referral to an approved housing counseling or legal services agency.

• Housing counselors who specialize in mortgage default help homeowners apply for assistance, understand their options, and may help you negotiate with their mortgage servicer.
  • Foreclosure prevention housing counseling is FREE for all Maryland homeowners.
  • See the Housing Counseling Agency Guide published by the Maryland Dept. of Housing and Community Development or call 1-877-462-7555 to find a housing counseling agency near you.
  • Legal service agencies provide help for FREE or at reduced rates for eligible homeowners.
  • See the the Legal Services Guide published by the Maryland Dept. of Housing and Community Development or call 1-877-462-7555 to find a legal services agency near you.
    

  Beware of Scams

  Tips to avoid foreclosure prevention scams:

  • DO NOT pay anyone in advance to assist you with a loan modification or other foreclosure prevention program. In most situations, charging upfront fees for these services is illegal. Call 1-877-462-7555 for a referral to a housing counselor who will provide free help.
  • DO NOT stop communicating with your mortgage servicer and DO NOT send your mortgage payments to a third party, unless you have written approval from your mortgage servicer first.
  • DO NOT believe guarantees. Reputable assistance agencies will never promise that they can stop your foreclosure.
  • DO be extremely cautious entering into an agreement with out-of-state companies, companies who partner with an out-of-state attorney, or businesses or individuals who identify themselves as “mortgage assistance relief professionals”, “loss mitigation consultants”, or “mortgage analysis and document review experts”;.
  • DOsubmit a consumer complaint to our Office if you are the victim of a foreclosure scam. Your complaint will provide vital information that will help put an end to these types of scams and could lead to a formal investigation.
    

  Additional Resources & More Information

  • Call 1-877-462-7555 or visit the Housing Counseling & Legal Services Network page on the Maryland Dept. of Housing & Community Development website to find a reputable agency that will help you understand your options, communicate with your mortgage servicer, or provide legal advice for free or at a reduced rate.
  • If you are a renter and the home you lease is in foreclosure, visit the Help for Renters page on the Maryland Dept. of Housing & Community Development website.
  • See the Foreclosure Articles published by the People’s Law Library of Maryland for legal resources, including:
    • Foreclosure terms and definitions of common words and phrases.
    • Foreclosure steps and timeline of a foreclosure case.
    • Foreclosure mediation FAQs for homeowners.

    Maryland Department of Labor
    1100 North Eutaw Street, Baltimore, MD 21201
    Dial 7-1-1 to place a call through Maryland Relay