Foreclosure mediation in Maryland

How foreclosure mediation works in Maryland, step by step

1. Who qualifies

   Foreclosures filed on or after July 1, 2010

   Mediation is for owner-occupied residential property, and the law presumes you are entitled to it. You may not get it if you already did prefile mediation and that agreement did not keep your right to postfile mediation, or if the lender shows good cause.

   Md. Code, Real Prop. § 7-105.1(j)

2. Watch for the request form

   With the order to docket or at least 30 days before the sale

   The request form comes with the final loss mitigation affidavit. It is either served with the court papers or mailed to you by first class and certified mail at least 30 days before a sale.

   Md. Code, Real Prop. § 7-105.1(h)(4), (i)

3. File the request and pay the fee

   Within 25 days of service or mailing

   File the completed request with the circuit court with a $50 fee, which the court can reduce or waive if you meet the Maryland Legal Services guidelines. Mail a copy to the lender's foreclosure attorney.

   Md. Code, Real Prop. § 7-105.1(j)(1)

4. If the lender tries to strike your request

   15 days to respond

   The lender can file a motion to strike with an affidavit giving reasons mediation is not appropriate. You have 15 days to file a response and must mail a copy to the foreclosure attorney.

   Md. Code, Real Prop. § 7-105.1(j)(2), (3)

5. Scheduling and documents

   Held within 60 days; documents due 20 days before

   The court sends your request to the Office of Administrative Hearings within 5 days, and the mediation must be held within 60 days, with up to 30 more days for good cause. The notice lists the documents each side must exchange at least 20 days before. Sessions are held by Webex, by computer or phone.

   Md. Code, Real Prop. § 7-105.1(k)

6. At the session

   Report filed within 7 days

   You must attend, and you may bring a housing counselor and a lawyer. The lender's representative must have authority to settle or be able to reach someone who does. Everyone works through a state mediation checklist of loss mitigation options and signs it at the end.

   Md. Code, Real Prop. § 7-105.1(l)

7. No-shows and no agreement

   Motion to stay within 15 days

   If you do not appear, the sale can go forward; if the lender does not appear, the case goes back to the court, which may dismiss the foreclosure. Without an agreement, the sale can be scheduled no sooner than 15 days later, and you may file a motion to stay the sale within 15 days giving specific reasons loss mitigation should have been granted.

   Md. Code, Real Prop. § 7-105.1(m), (n)

The program in Maryland

Common questions in Maryland