Foreclosure is the process of a lender taking back ownership of a home due to nonpayment. The foreclosure process leaves many opportunities for the homeowner to fix the situation and maintain ownership of his or her home.
Notice of Intent
The first thing that happens in the foreclosure process, according to the Maryland Department of Labor, is the lender will file a Notice of Intent to Foreclose. The lender must send the NOI at least 45 days before filing the foreclosure case in court.
As part of the NOI, the homeowner will receive a Loss Mitigation Application, which can enable him or her to come to an agreement or arrangement with the lender to stop foreclosure.
Order to Docket
The lender will file its case with the court at least 45 days after sending the NOI. This is known as an order to docket or complaint to foreclosure. The lender may file the case as soon as 90 days after the homeowner misses the first mortgage payment.
The lender will also provide the homeowner with a Final Loss Mitigation Affidavit if it has completed its loss mitigation review and made a determination that there are not alternatives to foreclosure.
A homeowner and lender may go into mediation to try to reach an agreement that will prevent foreclosure. This is optional. Homeowners may want to seek out law offices in Rockville Maryland to find an attorney who can assist with mediation and other negotiations with the lender.
If the homeowner is unable to reach an agreement with the lender, then the foreclosure moves forward. The court will set an auction day to sell the home. This may happen as soon as 45 days after the lender files the Final Loss Mitigation Affidavit with the court. After mediation, it can happen as soon as 15 days.
Foreclosure ends when the court evicts the homeowner. This can happen as early as 15 days after the sale.