Owning a home is a significant achievement, but you risk losing your residence if you experience financial difficulties. The state of Maryland has strict laws regarding foreclosure procedures.
According to the Maryland Department of Labor, the number of foreclosures has been increasing. As of November 30, 2023, the department received over 61,000 new Notices of Foreclosure. Take simple steps to reduce your risk of the lender taking action.
Communicate with your bank
Lenders want to work with you to keep you in your home. Contact the lender as soon as you foresee difficulties in meeting mortgage payments. Common loan modifications include:
- Reducing interest rates
- Extending the loan term
- Deferring a portion of the principal
Check with your lender to learn if you qualify for such modifications.
Understand state programs
Maryland offers assistance programs designed to aid homeowners facing foreclosure. These initiatives may include financial support or mediation resources. Investigate these opportunities to determine if they can offer the support you need.
Utilize financial counseling services
Non-profit housing counseling agencies can work with you to navigate the process. They help you understand options, negotiate with your lender and create a realistic budget to avoid future pitfalls.
Prioritize your finances
Evaluate your overall economic situation and make necessary adjustments. Look for simple ways to meet your mortgage obligations. Cut unnecessary expenses and explore additional income sources.
Learn about regulatory changes
Maryland has made recent changes to foreclosure regulations. Stay informed about these amendments and ensure compliance to protect your rights.
When a bank forecloses on your residence, it can make it harder to qualify for a new lease or another mortgage. Being alert to your finances and keeping your lender aware of any changes can help you keep your home.