New Foreclosure Law in Maryland
Presentation by the Maryland Department of Labor, Licensing and Regulation
Friday, June 18, 2010
New Foreclosure Process
Pre-ForeclosureNotice of Intent to ForecloseOrder to DocketMediationPost-Mediation
Glossary
Loss Mitigation Analysis:An evaluation of the facts and
circumstances of a loan to determine whether the homeowner qualifies for a loan modification or whether any other loss mitigation programs may be made available.
Glossary
Loss Mitigation Program:An option in connection with a loan
that avoids foreclosure through a loan modification, short sale, deed in lieu of foreclosure, or any other alternative
Glossary
Preliminary Loss Mitigation Affidavit:Certifies the status of an incomplete
loss mitigation analysis – includes the reason(s) why the analysis is incomplete.
Glossary
Final Loss Mitigation Affidavit:Certifies the completion of the final
determination of loss mitigation analysis in connection with the mortgage or deed of trust or in certain instances states why no loss mitigation analysis is required. (If a loan modification or other loss mitigation was denied, provides an explanation for the denial.)
Glossary
Request for Mediation Form:The official document that the homeowner
will receive from the secured party/lender with a Final Loss Mitigation Affidavit. This form is the homeowner’s official request for mediation to be filed with the Circuit Court.
Glossary
Foreclosure Mediation:A conference at which the parties in a
foreclosure action appear before an impartial individual in an attempt to reach an agreement on a loss mitigation program for the homeowner.
Notice of Intent to Foreclose (NOI)
Upgrades to the NOI Form Information/resources on how to access housing
counseling services Explanation of the Maryland foreclosure process
and timeline Loss Mitigation Application and instructions,
including a description of the eligibility requirements for programs offered by the secured party/lender
An envelope pre-printed with the address of the party responsible for conducting the loss mitigation analysis
NOI – What Does it Mean for You?
Counselors will now have a tangible document to complete with the homeowner
Pre-printed envelopes will cut down on lost faxes
Counselors need to stress urgency of timely submission of Loss Mitigation Applications
Order to Docket (OTD)
Will be filed with either a Preliminary or Final Loss Mitigation Affidavit
If secured party/lender cannot get in touch with the homeowner or they have not completed the analysis: Preliminary Loss Mitigation Affidavit
If secured party/lender has completed the analysis and deemed homeowner ineligible for any loss mitigation: Final Loss Mitigation Affidavit
OTD with Preliminary Loss Mitigation Affidavit
Another Loss Mitigation Application and a description of the eligibility requirements for loss mitigation programs that are applicable to the loan Instructions for completing the application
including directions to return the completed application to foreclosure attorney
Pre-printed envelope with address of attorney handling the foreclosure
OTD with Preliminary: What Does it Mean for You?
Make sure the homeowner brings a copy of the Order to Docket and Preliminary Loss Mitigation Affidavit
You will have a better understanding of what is needed and/or missing for loss mitigation review
OTD w/ Preliminary Loss Mitigation Affidavit – Next Steps
Final Loss Mitigation Affidavit may not be filed sooner than 28 days after SERVICE of the OTD with a Preliminary Loss Mitigation Affidavit Inability to contact or obtain complete information is
now a VALID basis for a Final Affidavit
LAST CHANCE for completion/submittal of Loss Mitigation Application
Final Loss Mitigation Affidavit
What to Look For:Request for Foreclosure Mediation FormPre-printed envelope with address of the
Clerk of the Circuit CourtPre-printed envelope with address of
foreclosure attorney
Final Loss Mitigation Affidavit: What Does it Mean for You?
What Happens Next: Discuss Mediation as an option Review affidavit, all original materials, and Request
for Mediation Form Discuss $50 filing fee Discuss possibility of Motion to Strike If homeowner chooses not to request mediation,
he/she has 15 days from the date they are served with the Final Loss Mitigation Affidavit to file a Motion to Stay the foreclosure sale
Next Steps: Opt-in
If Opting-in to Mediation:
Help homeowner complete Request for Mediation Form
Include $50 filing fee or discuss waiver options
Request for Fee Waiver or Reduction
The court will rule on a request for a waiver or reduction of mediation filing fee
The court may make its ruling without a hearing
If the fee is not waived entirely, but is reduced, they will specify in the order the dollar amount to be paid and the amount of time (no longer than 10 days) to pay
If the sum is not paid within the time allowed the Request for Mediation will automatically be stricken
Possible Motion to Strike Mediation Request
Secured party/lender has 15 days to move to strike the Request for Mediation. Motion must be accompanied by an affidavitThere is a presumption of entitlement to
mediationHomeowner has 15 days to respondMediation referral moves forward while
motion is pending
Possible Motion to Strike Mediation Request: What Does this Mean for You?
Discuss possibility of filing a response to the motion and the steps that need to be taken
If homeowner chooses not to respond and the motion is granted, the Office of Administrative Hearings (OAH) will be notified to cancel any scheduled mediation
Advertisement of Foreclosure Sale
A sale may not be advertised until the 20 days after a Final Loss Mitigation Affidavit is filed, but if a Request for Foreclosure Mediation is filed within that time and not stricken, a sale may not be advertised until the report from OAH is filed with the court
When Foreclosure Sale May Occur
If mediation is not requested: If OTD w/Final Loss Mitigation Affidavit – 45
days from service of OTD
If OTD w/Prelim Loss Mitigation Affidavit – 30 days from mailing date of Final Loss Mitigation Affidavit
When Foreclosure Sale May Occur Con’t
If mediation is requested: If mediation occurs – at least 15 days after
date of mediation If no mediation occurs – at least 15 days
after OAH files its report with the court. (Notice of mediation date informs parties that if they fail to appear, the date OAH sends the report to the court is when the 15 days starts.)
Motion to Stay Foreclosure Sale
Filed no later than 15 days from the date the Final Loss Mitigation Affidavit is filed (if mediation is not requested)
Filed no later than 15 days after the date a motion to strike foreclosure mediation is granted
Motion to Stay the Foreclosure Sale
If foreclosure mediation was requested and the request was not stricken:No later than 15 days from the date the
foreclosure mediation was heldNo later than 15 days from the date OAH
filed with the court a report stating that no foreclosure mediation was held
No later than 15 days from the expiration of the 60 days after transmittal of the request for mediation
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