Many people often fall behind payments on their mortgages year in and out. Don’t panic if you’ve fallen behind on your mortgage payments! If you take the right actions quickly, how to avoid foreclosure, can become a past issue. In this article, we’ll discuss the foreclosure process within Maryland and how to easily avoid them.
Foreclosure Process in Maryland
1st Month: You skipped a mortgage payment and started getting calls from the bank. You will also get a notification of default collection alerts. Missed mortgage payment, notification of default, notices of collection, calls from the bank.
2nd Month: Your creditor sends a notice of intent to foreclose and a loss of mitigation.
3rd Month: Your creditor files order to docket through a law firm
4th Month: Your creditor sends you a final loss mitigation affidavit and mediation request form
5th Month: Send the mediation request form with $50, or the sale can occur.
6th Month: The Circuit Court sends the request to the Office of Administrative Hearing (OAH) within five days of receiving a mediation request,
7th Month: OAH schedules mediation (A meeting with you and the lenders’ lawyers). If no agreement is reached, the home gets scheduled for foreclosure. The sale can be as soon as 15 days after mediation.
If a sale has been made, the lender must announce the sale within 30 days. The sale shall be ratified within 30 days of receipt by the courts of notification of the sale. Between the time of sale and the ratification of the house, you can still redeem your home. If you haven’t moved out this time, paperwork for eviction can be filed. There is no redemption period after the sale in MD, but there is a deficiency judgment after the sale.
These processes are not meant to be legal advice, but rather a guide to assist you with foreclosure. The process also differs depending on what actions you choose to take to avoid foreclosure. Always consult with a foreclosure lawyer or your lender.
Financial Implications After Foreclosure
You can drop 100 points or more if your home is foreclosed on your credit score. The foreclosure will stay on your record for seven years.
Your FICO score, which is different from your credit score, will change as soon as 2 years later. If, after the foreclosure sale, you haven’t left your home, you can be evicted from your property. An eviction would further reduce your credit score.
You’ll have to wait to apply for another mortgage loan when your house has been foreclosed. How long you’ve got to wait depends on the loan firm.
-Conventional Loans (Fannie Mae, Freddie Mac)-Longest waiting period, tougher credit and income standards.
-Federal Housing Administration (FHA) Loans-If you have been foreclosed by a specific situation, you can get a faster loan through the FHA. Examples of this would be to get laid off, a medical emergency.
So, How do you Avoid Foreclosure?
Constantly keep in touch with everyone involved. This could be your partner, family members, your lender, a foreclosure avoidance counselor, or even an attorney.
Friends and Family: When telling your loved ones about your condition, the earlier, the better. You will need their support in this difficult time, and they may even be able to help.
Lender: You’ll tell your lender that you’re committed to saving your home from foreclosure. Explain why you’ve skipped your payment and talk about your choices. Tell them if you’re talking to a housing counselor. These calls need to be noted in your file. You should always get the name of the person you spoke to, and try to write down the date and time of the call.
Foreclosure avoidance counselor: The Department of Housing and Urban Development is run by the Government and can help if you are facing foreclosure. Speak to a FREE foreclosure avoidance counselor.
Attorney: There’s going to be a ton of legal jargon thrown at you while you’re facing foreclosure. It helps if you have legal counsel but don’t need it. You’ll just have to do some more homework to make sure you ask the right questions.
I can’t make Payments. What Next?
I can’t make payments, refinancing won’t work, and the bank doesn’t want to make a quick sale. Keep cool! You do have a few choices to save your house from foreclosure:
1) Sell your house Fast!
If you have a good amount of equity, you can sell your home fast through an investment firm. SellMyHouseFastLocal is a foremost Home buying company in the Maryland area. We purchase homes with cash.
This is a great way of working with SellMyHouseFastLocal and could help you with your situation. At the end of it all, the seller didn’t get their credit score hit by the foreclosure sale or possible eviction. They could stay longer in their house, and they were able to put their family at ease.
2) Put your house to work
There are a few choices here. Rent a room in your house or the whole house and stay with a family member. The quick way you can do this is to use Airbnb. Here’s the page to become the “Host” of Airbnb. Another way to rent your house is by using Zillow. You can list your house there, but it may not be as easy as on Airbnb. The best choice will be to mention your house on both of them.
List your house with the location of the scouting company. If you’re not opposed to the idea of someone filming in your house, this could be a great choice. Locationshub is the only website where you can mention your home as a potential location for filming. It’s a long shot, so what do you have to lose?
3)Think of an alternative
It’s never too early to plan for the worst-case scenario; you’re losing your house. The first choice will be to stay temporarily with a friend or family member. That’s why it’s so important to be transparent at the beginning with your close friends and family. People are more likely to let you stay with them if they know it ahead of time. Start searching for jobs that include living somewhere, rent-free. Jobs in the building.
How to avoid foreclosure in Maryland may differ in other counties, but one thing is sure: foreclosure can be prevented. When you have the right realtor or agent on your side, there, you have your property to keep. Contact us today.