Posted On: May 21, 2010
Maryland Makes Mediation Mandatory in Foreclosure Process
The governor of Maryland signed into law this week a bill that creates a foreclosure mediation program to help distressed homeowners stay in their homes.The new legislation gives Maryland homeowners facing foreclosure the right to mediate with their lenders as part of the foreclosure process.
From the Washington Post report:
"With my signature today, we are empowering our fellow Marylanders, putting them on a more equal footing with mortgage companies that too often can't be bothered to pick up the phone before beginning a foreclosure proceeding," O'Malley said in a statement. "This legislation will help keep more Marylanders in the homes they worked hard to purchase."
Under the bill, the lender is required to send an application for a loan-modification or loss-mitigation program to the homeowner at least 45 days before a foreclosure action is filed in court. It is also mandated that the lender pay a $300 fee for a foreclosure filing.
The homeowner has 15 days after receiving the lender's final loss-mitigation affidavit, which states reasons for denial of a loan modification, to request a foreclosure mediation. The request must be sent to the Circuit Court, along with a $50 fee.
A work group organized by O'Malley last year initially considered a mandatory mediation program. But the bill instead allows homeowners to opt in.
The mediation program is O'Malley's latest effort to help homeowners stave off foreclosure.
In 2008, O'Malley proposed bills that extended the foreclosure timetable from 15 to 150 days, prohibited prepayment penalties and made egregious mortgage schemes subject to criminal prosecution.
If you need help in defending a Florida foreclosure, contact our Jacksonville, Florida foreclosure law firm.
Greg Gilbert
Keith Maynard
