When people in Maryland purchase homes, they generally have to take out mortgages on the houses, which can often last for 30 years. People know what their monthly payment is going to be and know what they will be able to afford at the time they purchase the home. However, 30 years is a long time and many things can happen between the first and last payment of a mortgage.
Sometimes unexpected events arise such as accidents which force people to miss time at work or they may lose a job. If people fall too far behind on their payments, the bank who has the mortgage can initiate a foreclosure action on the house. This can be devastating for the homeowners who not only face the fact that they lose their home, but it can also have detrimental effects on their ability to purchase homes in the future and effect their credit.
Options for avoiding foreclosure
If people have a house go into foreclosure there are options they may have though. These options generally involve needing to negotiate with the mortgage lender. One option is to request a forbearance, which will suspend or reduce payments for a period of time if people experience financial hardships. Another option is to modify their mortgage. This can be done through refinancing or extending the time of the mortgage, which will reduce the monthly payments to a more manageable amount.
People may also be able to have a pre-foreclosure sale, which may involve selling the house for less than the amount owed. People may also be able to give the house back to the bank, which may have benefits for future credit even if they still lose the home.
People in Maryland who have a home foreclosed on should act quickly though to explore their options with the bank. Navigating the process can be complicated though and time-consuming. Experienced attorneys understand the process and people’s options and may be a useful resource.