In the first quarter of 2022, the Maryland Department of Housing and Community Development reported an increase in foreclosures over the previous quarter of 32.8%. This is bad news for homeowners, especially if they are struggling to make ends meet.
If you get notice of an impending foreclosure, you can find ways to stop it. Foreclosure prevention may involve taking some serious steps, but you have options to help you keep your home.
Mediation involves you and your lender coming together with a neutral third party who will hear both sides of the situation and assist you in reaching an agreement. This option is similar to calling your lender and asking if there is any way to delay the foreclosure. However, it adds a formal structure to discussions and opens up legal options to you for reaching a solution.
Stay or dismissal
If you are in the process of foreclosure and the sale of your home is approaching, you may be able to go through the court to get a stay or a dismissal. A stay is a pause in the proceedings. It can allow you to have time to reach an agreement with your lender and stop the process. A dismissal might occur if there was a problem with the foreclosure process, such as your lender failed to complete a required step. It would result in the court dismissing the foreclosure, which would result in the lender having to start over with the process.
There are various government programs that offer special options for loan modifications that will help you keep your home. You can check with the U.S. Department of Housing and Urban Development and with the Maryland Department of Housing and Community Development to see what may be available. You also could try working with your lender to modify your loan.
In certain cases, applying for Chapter 13 bankruptcy might assist you in retaining ownership of your house. If you are confident that you can still manage to pay your dues and your primary problem is having an overwhelming amount of debt, then this option could be suitable for you.
Whatever method you choose, it is possible to stop or delay your foreclosure so that you can keep it. You may need to try multiple steps to find what works for your situation.