FORECLOSURE IN MARYLAND

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1 WAYS TO STOP FORECLOSURE IN MARYLAND Michael P. Coyle, Esquire Maryland Bankruptcy Attorney

2 When it comes to your financial life, there are not many situations more terrifying than receiving a notice of foreclosure. This shows that your mortgage lender means business, as they are taking the first step in repossessing your home. Even though you find yourself in a bad spot, it does not mean your home is gone just yet. The one thing you should remember is this: your mortgage lender does not want to repossess your home. They would rather you pay what you owe, month in and month out, than be stuck with the property and faced with the prospect of selling it to somebody else. 2

3 Once you learn more about the many ways to stop foreclosure, it may not be long before you have a plan in place that will allow you to get back on the right track. Here are five ways to stop foreclosure proceedings: 1. Stay in constant communication with your lender. When you first realize foreclosure is a possibility, it is natural to run and hide. You think that doing this will improve your situation, when in all actuality it will only make things worse. Stay in touch with your lender at all times, letting them know where you stand, what you are doing, and that you want to save your home. It is better to be open and honest than to close yourself off from your lender and hope for the best. 2. Determine if a loan modification is a possibility. This is something to discuss with your lender. In short, a modification will alter the terms of your loan to 3

4 improve your chance of catching up on back payments and making regularly scheduled payments moving forward. 3. File for bankruptcy. This may be the last idea you consider, but it is one to take into consideration nonetheless. The moment the automatic stay is in place, your lender has no choice but to stop foreclosure proceedings for the time being. When this happens, you may buy yourself enough time to get back on track. Note: since this is a complicated process, it is best to speak with an attorney about what to expect. A bankruptcy attorney can walk you through the steps, making sure you do everything the right way. Furthermore, this person can help you focus on what is most important to you: saving your home. 4

5 4. A short sale may be the best option. A short sale allows you to stop foreclosure, making it possible for you to avoid the negative consequences. Of course, there is a downfall of this strategy: you have to sell your home in order to make it work. With a short sale, the bank agrees to let you sell your home for less than what you owe. Since you will need the lender s permission, it is important to remain in constant communication. 5. Learn more about government programs. Every year, thousands of people throughout the country lose their home to foreclosure. The government has helped many avoid this. The Home Affordable Modification Program, for example, was created to assist homeowners who are faced with a financial hardship. 5

6 About the Author Michael P. Coyle, Esquire Mr. Coyle is one of the founding partners of Chaifetz and Coyle. Prior to Chaifetz and Coyle, Mr. Coyle was a law clerk to The Honorable Robert J. Yock. Mr. Coyle then was an attorney with several of the largest and most prominent law firms in the country, before starting his own practice. Mr. Coyle graduated summa cum laude from The Washington College of Law (American University) in 1994, and was a member of The Law Review. Prior to Law School, Mr. Coyle graduated with a BA in Government from Franklin & Marshall College, Lancaster, PA. Mr. Coyle s practice specializes in bankruptcy, foreclosure defense, general litigation, civil rights, and employment discrimination. Mr. Coyle manages the Bankruptcy Department of Chaifetz & Coyle Alexander Bell Drive, Suite 200 Columbia MD Phone: (410) Fax: