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Resources for Home Owners Facing Foreclosure - Financial Regulation

Homeowners facing foreclosure may avoid falling further behind on payments by taking immediate action and reaching out for assistance as soon as possible.

Non-profit housing counselors are certified trained professionals who provide guidance on the financial aspects of homeownership. Housing counselors that provide foreclosure intervention services specialize in working with borrowers in default and their mortgage company to avoid foreclosure. All non-profit foreclosure counseling is available at no cost to the homeowner. Counselors discuss with homeowners the situation that led to the default, explain available assistance programs and alternatives, and may function as a liaison between homeowners and their mortgage company. National studies show that homeowners in foreclosure who work with housing counselors:

  • Are more likely to remain in their home;
  • Are more likely to receive a loan modification that lowers their mortgage payment and/or interest rate;
  • Are more likely to receive a favorable loan modification than homeowners that don't work with counselors; and
  • Receive better results the sooner they work with a counselor.

Call the HOPE hotline at 1-877-462-7555 or visit the Maryland HOPE website for a referral to a state-approved housing counseling agency. Only seek the assistance of an approved and certified housing counselor (see the section on Mortgage Relief and Foreclosure Rescue Scams for tips on how to avoid becoming a victim of fraudulent services.)

Maryland has several non-profit legal service agencies throughout the State with attorneys available at no or low cost for eligible homeowners. Homeowners facing foreclosure may choose to work with an attorney who can represent their interests in court and during negotiations with their mortgage company. Homeowners may seek legal advice for a number reasons, including: if a foreclosure action has been filed in court against them, if they are requesting mediation, if they are interested in pursuing bankruptcy, or if recommended by a housing counselor. Call the HOPE hotline at 1-877-462-7555 or visit the Maryland HOPE website for a referral to a non-profit legal services agency. If your income does not qualify you for free or reduced-fee legal services, consult the Lawyer Referral Services page on the Maryland State Bar Association website to locate a reputable private attorney.

Homeowner “Toolkit”
The documents linked below contain useful information to help guide homeowners through the loss mitigation and foreclosure process. These documents were created by a partnership between housing counseling and legal services agencies in Maryland and are not a product of the Office of the Commissioner of Financial Regulation.

Common foreclosure terms
Tips for working with your lender
Understanding workout options
Infographic timeline (en Español, Cronograma de Ejecución Hipotecaria para Propietarios de Viviendas)

Reverse Mortgage Foreclosure
If you receive notice from your lender or servicer that your reverse mortgage is due or in default, contact a non-profit housing counselor or attorney as soon as possible through the agency page on the Maryland HOPE website or call the HOPE hotline at 1-877-462-7555.
Read more about reverse mortgages on our Home Owners Resources page.

Renters Facing Foreclosure
If you are a renter and know that the home you lease is in foreclosure, contact the Public Justice Center at 410-625-9409 to learn about your rights and protections.

Are you an employee of the federal government, the State of Maryland, or a local government in the State of Maryland, and you have been involuntarily furloughed from work without pay due to a government shutdown?
If the answer is “yes”, and you are facing foreclosure on your owner-occupied residential real property, you may qualify for a court-ordered stay of the foreclosure. Contact your mortgage servicer for more information or seek the advice of an attorney or housing counselor.

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