Maryland Court of Appeals Adopts New Foreclosure Rule

by on States

In Maryland, lenders are required to notify delinquent homeowners at least 45 days in advance before foreclosing a property to give them more time. This was made possible because of the new foreclosure legislation passed earlier this year.

The Maryland Court of Appeals has actually adopted the new rules last Tuesday in order to conform to the new foreclosure legislation. Under the new rules, a lender can only foreclose a property after 90 days from the default.

According to the Chairman of the CA’s Rules Committee, Judge Alan M. Wilner, residents can expect more changes in the foreclosure procedure being implemented in Maryland. In fact, a panel is already considering these changes and will be reporting back to the high court by December.

Last month, the state had the 27th highest foreclosure rate in the country. But compared to last year, there was a 17.70 percent decline in the number of homes that entered some stage of foreclosure. Also, there was a 23.27 decline from May’s figures.

These declines can be considered to be good news for the state although it may not mean that the foreclosure crisis is over. Experts believe that the decline in foreclosure rate can be attributed to the increase in successful workouts between the lenders and distressed homeowners.

This is one of the reasons why many housing advocates are encouraging homeowners to talk with their lenders in order to stop foreclosure. In most cases, an amicable agreement is reached and both parties end up satisfied.

For troubled homeowners in Maryland, you just need to accept your situation and be realistic when negotiating with your lenders. With the extra time you have to work out your mortgage problems, you should make sure that you do not waste any minute. Be honest with what you can afford and if you have to give up your home, then discuss this with your lender.