Maryland Foreclosure Lawyer

Common Terms

The fear of losing one’s home can be a terrifying reality. Knowing your options in such circumstances is a must, and acting quickly is important to potentially save your home or, at least, get out of the mortgage with as much dignity and money as possible.

For Baltimore and Maryland individuals and couples facing foreclosure, the way to understanding is by reading the information below.

This is for informational purposes only and is not to be construed as legal advice.  For advice, please contact Joseph K. Githuku, LLC online or by telephone at 410-849-9529.

 I just received an Order to Docket Foreclosure. What should I do?

You have no need to fear moving at this point in the process. You have much longer in your home than you might expect. In Maryland, a bank must go through a judicial process before it can repossess a borrower’s home. During this process, the borrower remains the record title owner to the property. This means that you still have time to obtain a loan modification, perform a sale or short sale of the home, or save the house via a strategically-filed bankruptcy. It also means that you remain responsible for any homeowner or condo association assessments.

When you receive the order to docket foreclosure, the most important thing you can do is to follow up immediately.  You have 30 days from receipt of a summons to respond to the complaint.  It is wise to consult with a qualified foreclosure attorney as soon as possible to determine the best course of action for your particular case and to begin that process.

How long do I have in my home?

It depends upon your specific circumstances. The sooner you seek help, the more options are available to you and the more time you have to act. The 2009 changes to foreclosure law give you certain rights and protections including mediation that have strict deadlines. It also means the foreclosure process takes a little bit longer than in the past.

What is loss mitigation?

Loss mitigation is a catchall for various ways of avoiding some of the downsides of a foreclosure. The main types of loss mitigation are loan modifications, short sales, deeds-in-lieu of foreclosure, and consent foreclosures.

What is a loan modification?

The easiest method, in terms of keeping your home and not hurting your credit still more, is to get a loan modification.  A loan modification is an agreement between the borrower and the lender that re-writes the loan agreement. Loan modifications may involve principal reductions, interest rate reductions, deferred repayment of missed payments, or an extension of the loan’s term. In theory, a loan modification should lower payments and allow the borrower to remain current on the loan.  However, while the easiest, it may well be the one option unavailable to you, depending upon your specific circumstances.