Avoid Foreclosure Through Mediation
Many homeowners in financial distress repeatedly contact their lender to modify the terms of their mortgage—to no avail. Unfortunately, without effective legal counsel, a homeowner's efforts can easily be ignored by lenders and the homeowner is suddenly confronted with notice of foreclosure. A lawyer experienced in mortgage modifications and in foreclosure mediation can make a significant difference.
Contact Our Salisbury Foreclosure Mediation Attorneys
The Law Firm of Ann Shaw, P.A., offers more than 20 years of experience in real estate law and can effectively represent your interests under Maryland's foreclosure mediation laws.
Foreclosure mediation allows homeowners to avoid foreclosure through less painful alternatives. Together with reputable co-counsel, The Law Firm of Ann Shaw, P.A., assists homeowners in pursuing a modification or a forbearance agreement. Our firm may help to negotiate with the lender to arrange a short sale (selling the property for what it’s worth in the current market, and the lender forgives the remaining balance due) or to provide the lender a deed in lieu of foreclosure (in order to keep the borrower’s name and predicament from being advertised in the paper). The foreclosure mediation could also include an agreement for the amicable turnover of the property, including perhaps, additional time for the homeowner to relocate. In some instances, it may be possible to negotiate with the lender to pay the homeowner enough money to move out.
Maryland Foreclosure Mediation Law
Significant procedural changes in Maryland Foreclosure Mediation law—applicable to owner-occupied residential property—became effective in July 2010.
Under the new law, when docketing a foreclosure, the Lender is required to provide a loss mitigation affidavit. The Loss of Mitigation Affidavit must state the following:
- Whether the property is the borrower’s primary residence
- If the loan amount makes the loan ineligible for modification
- If the loan is ineligible because it is a second mortgage
- If the borrower is ineligible for modification due to level of income or failure during a trial modification period
The lender must also provide the borrower with a Request for Foreclosure Mediation. Unfortunately, many borrowers do not adequately understand this form and could unintentionally provide inaccurate or improper information on the form—further jeopardizing their interests in mediation or in court.
Timing Is Critical in Foreclosure Mediations
- If the borrower timely files a Request for Foreclosure Mediation, the court must refer the matter to a mediator within five days and the mediation must be held within 60 days (under the jurisdiction of the Office of Administrative Hearings).
- The lender may make a Motion to Strike the mediation request if the lender has good cause why the mediation would not be appropriate.
- Documents and information as required by the Office of Administrative Hearings must be provided no later than 20 days before the mediation.
Rights and Obligations in Foreclosure Mediation
The Lender: The lender is entitled to have its lawyer at the mediation. The lender must have a representative present at the mediation with the power to make a settlement — or who can readily contact a person with the power to approve a settlement.
The Borrower: The borrower must attend the mediation and has the right to be accompanied by a housing counselor or attorney.
Following the Foreclosure Mediation…
The Office of Administrative Hearings must file a report with the court the earlier of five days after the mediation, or the end of the 60 days allowed plus any extension (30 days) granted for good cause.
If the parties do not reach an agreement (or if the mediation does not occur within the allowed 60 days or a 30-day extension granted for good reason), the lender may then schedule the foreclosure sale.
The borrower has the right to file a Motion to Stay the sale within 15 days after the mediation, or, if there was no mediation, within 15 days after the Office of Administrative Hearings files its report with the court. However, a delayed mediation could result in the lender scheduling the foreclosure sale prior before the Office of the Administrative Hearings files its report. Seeking the prompt assistance of an experienced attorney who can facilitate the process efficiently can help avoid this pivotal timing upset.
Foreclosure Alternatives
The foreclosure alternatives contemplated by the new law include not only mortgage modification, but also short sales and deeds in lieu of foreclosure. The law encourages any alternative that lessens the harmful impact of foreclosure on the homeowner.
Although this law does not address tenants, it refers to providing legal assistance to “occupants.” Another new Maryland statute gives tenants roughly the same rights under Maryland law as under recent federal law.
How The Law Firm of Ann Shaw, P.A., Can Benefit You
The Law Firm of Ann Shaw, P.A., offers more than 20 years of real estate law experience, combined with extensive bankruptcy experience so that we can explore every alternative. Our attorneys are knowledgeable in title review, and have conducted thousands of real estate closings involving residential loan documents. Additionally, we are familiar with RESPA (Real Estate Settlement Procedures Act).
Attorney Ann Shaw was involved in the promotion of Maryland's Protection of Homeowners in Foreclosure Act (PHIFA), which has protected homeowners since 2005. As a result of our depth of knowledge, dedication to staying abreast of changes in the law pertaining to foreclosures and borrower's rights, and our extensive experience, we are able to effectively review and evaluate the legal documents involved in a mortgage transaction, identify predatory lending scams, and represent clients in complex mortgage mediation. Our law firm also offers experience in contesting the foreclosure process in state court.
Without a lawyer, your lender—with superior knowledge of the process and the law—is likely to attempt to intimidate you. With The Law Firm of Ann Shaw, P.A., on your side, your lender is on notice that you are serious about your foreclosure mediation.
Contact an Experienced Eastern Shore Law Firm
The Law Firm of Ann Shaw, P.A., is located in downtown Salisbury, just one block from the Salisbury courthouse. We discuss your case face-to-face, not by e-mail or over the phone like out-of-state companies. We are Maryland attorneys who know your rights under Maryland law and can represent you in both Maryland and federal courts in the District of Maryland. Our fees are fair and reasonable.
To contact an attorney for experienced legal service close to home, call 410-202-8029 or 866-986-2096.
