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How to put a stop to foreclosure in Maryland

When a homeowner is falling behind on mortgage payments that could result in the possibility of foreclosure, there are a number of effective methods for solving the problem. Several involve money, but several others do not. They may, however, involve executing an agreement with the lender or going through the court process.

Stopping the foreclosure process should start with an assessment of available assets like retirement funds, savings accounts, disability insurance, unemployment insurance, as well as saleable assets like vehicles, antiques, jewelry, or collectibles. Next, contacting the lender on the property should follow. A homeowner could possibly put together an agreement with the lender that will halt the foreclosure process. Although they are not under any obligation to make modified arrangements on a loan, mortgage lenders sometimes will rather than having to go through the lengthy foreclosure process.

The types of modified arrangements that a lender might enter into could include forbearance, repayment plan, loan modification, reinstatement, VA refunding, a private mortgage insurer, claim advance, re-amortization, deed in lieu of foreclosure or short sale. Also, in the case of a natural disaster, such as an earthquake or a hurricane, many lenders provide relief in the form of a modified payment schedule, paused foreclosure action or suspension late fees. In addition, the homeowner could refinance their loan or sell the property.

If none of these options are a possibility with the specific lender, a homeowner could turn to bankruptcy. An attorney who regularly handles real estate transactions could help a homeowner who is in a difficult financial position to put together one of these types of agreements with their lender, or determine if the only available recourse is selling the property or filing for bankruptcy protection.

Source: Realty , "Stopping a home foreclosure ", December 17, 2014

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