Effective July 1, 2010 in Maryland, homeowners facing foreclosure now are legally entitled to a mediation process. Lenders are now required to provide information detailing the lender’s efforts to avoid foreclosure with the homeowner. If the lender has not completed its consideration of foreclosure alternatives, the legislation provides a process for that to occur even after a foreclosure has been filed with the court.
This new legislature allows a homeowner to opt for foreclosure mediation if the homeowner does not believe he/she was fairly considered for foreclosure alternatives. It further provides additional funding for housing counselors to assist homeowners. This new process is part of the Short Sale Tax Prohibition Bill signed into law on May 20, 2010 by Governor Martin O'Malley.
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