The idea of losing one’s home to foreclosure can be a distressing ordeal. In Maryland, homeowners have options to defend their homes and avoid this unfortunate situation.
Though falling behind on your mortgage payments can make you feel like you are in hot financial waters, being informed can give you the confidence you need to handle the matter calmly and rationally.
Loan modification
Through loan modification, you can negotiate with your lender to change the terms of your loan. This might include lowering the interest rate or extending the loan period to make your monthly payments more manageable.
Forbearance
If your financial troubles are temporary, a forbearance agreement may be a viable option. Under forbearance, your lender may allow you to temporarily pause or reduce your mortgage payments. This can provide you with the breathing room you need to get back on your feet.
Repayment plan
A repayment plan involves spreading out your missed mortgage payments over a period of time. This option can be suitable if you have a temporary setback and can afford to pay a bit extra each month to catch up on the arrears.
Sell or refinance
If you cannot afford to keep your home, selling it or refinancing the mortgage might be the best course of action. This can allow you to pay off the outstanding debt and prevent foreclosure.
As of September 18, 2023, the Maryland Homeowner Assistance Fund is no longer available. While this might limit your options when it comes to defending against foreclosure, you can protect yourself and your home with the help of a foreclosure defense lawyer.
