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The State of Maryland is offering hope and possible relief to those currently facing foreclosure.
In a continued effort to keep Maryland families in their homes, the State of Maryland and six major servicing companies have reached an agreement to streamline the loss mitigation process. The agreement 
comes after months of negotiations with loan servicing companies. AmeriNational Community Services, Citi, GMAC ResCap, HSBC, Litton Loan Servicing and Ocwen have agreed to make their loss mitigation process more responsive to those facing foreclosure.
The servicing companies have promised that homeowners will receive an answer from their loss mitigation departments within 75 days of submitting a loss mitigation package. They have also agreed that in most cases they will halt foreclosure proceeding, and foreclosure penalties will not accrue during the loss mitigation process. The loan servicers may also offer incentives to their staff for successful work-out plans with homeowners.
Maryland ’s Foreclosure Prevention Assistance Network via “Team Maryland ” (designated representatives of the servicing companies) will be the direct contact point for homeowners in crisis. The agreements will assist the state’s HOPE counselors to increase successful work-out plans for homeowners. The HOPE counselors are a part of the “Bridge to HOPE” loan program. This program provides small gap loans to distressed homeowners at a zero percent interest rate.
Maryland has been working since 2007 to help its homeowners retain their ownership and has lead the nation in creating reforms to battle the rising tide of foreclosures. The state has passed legislation to reform lending practices including a requirement for lenders to verify a borrower’s ability to pay, banned pre-payment penalties, made mortgage fraud a crime, toughen mortgage professionals’ licensing requirements, and extended the foreclosure process to an approximate 150 days. The Washington Post has called these laws “among the most sweeping in the country”.
The State of Maryland is the first in the nation to pass regulations that requires mortgage loan servicers to “a duty of care”. Mortgage loan servicers must now respond in a timely manner to homeowners seeking information and help in regards to their loans. In addition, mortgage servicers must pursue loss mitigation whenever possible.
Mortgage Late? Don’t Wait:
Call “HOPE” at 1-877-462-7555 or visit the website MDHOPE.org Servicing companies manage the loan payments and foreclosure proceedings for the lender. The loss mitigation process is when the lender/servicing company works with the borrower to avoid foreclosure.
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