MARYLAND FORECLOSURE CHANGE EFFECTIVE JNE 1, 2010

The Maryland General Assembly has recently ended it's session for the year and the Maryland Land Title Association was following many of the bills very closely.  Of particular interest to everyone in Maryland was the passage of HB 472 FORECLOSURE PROCEDURES-FORECLOSURE MEDIATION. 

These new rules will significantly alter the time lines for foreclosures in Maryland. 

The passage of this bill will significantly change the way in which foreclosures for OWNER OCCUPIED HOMES which are being used as PRINCIPAL RESIDENCE are handled in Maryland.  New rules will now require that the lender must provide, or attempt to provide, the homeowner with loss mitigation alternatives to foreclosure such as loan modification, a short sale, a deed in lieu of foreclosure or any other alternative that is intended to make it easier for the homeowner to transfer ownership of the property, or to lessen the harmful impact of foreclosure.

Foreclosure attorneys will now be required to provide the homeowner, along with the initial notice of intention to foreclose an application for loss mitigation.  The application must include a description of the eligibility requirements, instructions for completing the application and a telephone number to confirm receipt of the application.

In addition to several other new rules affecting the foreclosure filing the homeowner is now presumed to have a right to mediation unless good cause is shown.

The state will use its Office of Administrative Hearings (OAH) for mediation purposes. At the time of a mediation hearing a representative of the lender must be present and must have the authority to "settle the matter"  or be able to contact a person with authority during the mediation meeting.

In order to pay for additional mediators there will bean additional $300 filing fee paid a the time of initial filing of foreclosure.