How do I avoid a foreclosure in Maryland? We just missed our first payment and are in a financial burden.

The following is from the Maryland Department of Housing and Community Development website (link below): “Falling behind on your mortgage or confronting an interest rate reset need not mean you will lose your home. A network of counselors is being strengthened to help Maryland homeowners contact their lenders and servicers and explore other options. The Maryland Department of Housing and Community Development has new programs that will help some homeowners refinance into an affordable mortgage or catch up on missed payments while negotiating a better outcome than foreclosure. The Department of Labor, Licensing, and Regulation is investigating cases of fraud and foreclosure prevention scams. Take charge of your circumstances, explore all your options and, most importantly, don’t wait!”

Maryland has established the Home Owners Preserving Equity Program (H.O.P.E.) to assist home owners who have fallen behind in their mortgage payments.  In general, the H.O.P.E. website sets forth the following guidelines vis a vis mortgage delinquencies in Maryland: (1) if you miss one payment, you are in default and will receive a deficiency notice from your lender; (2)  if you miss several payments, the lender will send you a notice of default, detailing how much is due and that the foreclosure process will begin if the amount is not paid; (3) if you have been in default for 90 days, the lender can begin foreclosure proceedings.

Please avail yourself of the options to avoid foreclosure provided through Maryland’s impressive H.O.P.E. program.  If for some reason your lender stills pursues foreclosure, it would be to your advantage to consult with a qualified Maryland bankruptcy attorney before your mortgagor files the foreclosure action.  An experienced bankruptcy attorney could negotiate a re-payment arrangement with your lender that would alleviate the need for a foreclosure action.  If a foreclosure cannot be avoided, your bankruptcy attorney can advise you on all relevant issues in a foreclosure vs. bankruptcy situation, including the long-term ramifications of having a foreclosure in your credit history, and your eligibility for and the critical distinctions between Chapter 7 and Chapter 13 bankruptcy proceedings.