How to Stop Foreclosure on Your Home in Maryland

Many people in Maryland want to know how to stop foreclosure on their home these days. The prolonged recession has left a lot of people unemployed and deeply in debt and Maryland foreclosures are more frequent than ever. When people get a notice of intent to foreclose from their mortgage company, they usually rush to a Maryland bankruptcy attorney seeking a way to stop the foreclosure.

Foreclosure on a home occurs when the auctioneer’s hammer falls and the sale of the home is complete. If your mortgage company has notified you of their intent to foreclose on your home, there are several things you can do to stop foreclosure as long as you take action before the sale is complete. If you wait until after the sale of your home there is usually nothing that can be done.

How to Stop Foreclosure Before the Sale of Your Home

The Maryland foreclosure process requires your lender to take certain steps and follow certain timelines before taking possession of your home and putting it up for sale. The first of these steps is to send you a notice that they intend to foreclose on your home. If you’ve received this notice, you should immediately contact a Maryland bankruptcy attorney and have him or her review your situation.

There are three options for stopping a foreclosure that an attorney can help you with:

Foreclosure Mediation

In many cases, an attorney can help you negotiate with your mortgage company to find a solution other than foreclosure. Even if you’ve attempted to negotiate with your lender previously, this is still the first place to start because an attorney is often more effective. Often the terms of your loan can be modified or a payment plan can be established to assist you in catching up on your mortgage.

Injunction to Stop Foreclosure

If you don’t actually owe the money that the lender says you owe, or if the loan documents have serious “defects,” you and your attorney can file for an injunction to stop the foreclosure. Usually an injunction is only an option if your lender has made an error in tracking or calculating a borrower’s payments or is engaging in unlawful activity, such as including unlawful provisions in the terms of the loan or falsifying or fabricating documents related to the loan or foreclosure.

File for Bankruptcy

If mediation fails and/or you have no grounds on which to file an injunction, your only option for stopping the foreclosure is to file for bankruptcy. This may also be the best option for you if you have a lot of other debts that you’re having trouble keeping up with. There are several bankruptcy options and, though there are consequences for filing for bankruptcy, most people are at least able to keep their home and get the breathing space they need to get their financial situation back in order. Your Maryland bankruptcy attorney can advise you as to the best bankruptcy option for your situation.

How to Stop Foreclosure After the Sale of Your Home

As I noted in the beginning, once the sale of your home has occurred, there is usually nothing that can be done. Occasionally, though, if you discover after the sale that your lender did not follow all state laws regarding the foreclosure process you can file an Exception to the sale. However, the exception must be filed within 30 days of the sale or you will have no recourse. You’ll need a Maryland bankruptcy attorney to review your case to find out whether your lender followed Maryland foreclosure laws correctly.

If you need to find out how to stop foreclosure on your home, Maryland bankruptcy attorney John Burns can show you your best options for stopping a Maryland foreclosure and negotiate with your creditors to get your finances back on track. Call our office at 301-441-8780 to schedule an appointment regarding how to stop foreclosure on your home.