Maryland’s foreclosure process requires lenders to follow a sequence of mailings and legal filings. As noted by the Maryland Department of Labor, a Notice of Intent to Foreclose is the first certified letter that you may receive.
The Notice of Intent acts as a warning. It informs you that your lender intends to file a foreclosure action after 45 days from the date of the NOI. You may also receive a “Loss Mitigation Application” with the notice. After filling out the included application, you may submit the form and work out a payment arrangement with your mortgage company.
A Final Loss Mitigation Affidavit precedes an official court docket
If you do not submit a Loss Mitigation Application or if you fail to work out a payment arrangement, your lender may file an “Order to Docket” with the court. Also known as a “Notice of Foreclosure Action” or “Complaint to Foreclose,” the OTD represents the first official step to foreclosure.
Private mortgage lenders may file an OTD after a homeowner misses payments for 90 days. Government-backed mortgages require a 120-day wait. An OTD may arrive with a “Preliminary” or a “Final” Loss Mitigation Affidavit. This may reflect the last chance for a payment arrangement.
Mediation may help work out a payment arrangement
Homeowners may have an option to attend an in-person mediation session. During mediation, a neutral third party discusses the options with you and your lender. You must still reside in your home to qualify. Homeowners have 25 days to apply for mediation after the mailing date of the lender’s Final Loss Mitigation Affidavit.
Without a payment arrangement in place after a mediation session, a lender may file the final court notice to schedule your property for a foreclosure sale. You may, however, still have an option to file an objection to the sale of your home.