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Foreclosures in Md. can resume Jan. 4 under Hogan’s order
Order includes pandemic protections for borrowers
Foreclosures in Md. can resume Jan. 4 under Hogan’s order
Order includes pandemic protections for borrowers
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Existing residential foreclosure proceedings may resume and new foreclosure actions may be initiated beginning Jan. 4 under an executive order Gov. Larry Hogan issued Friday that includes protections for borrowers financially harmed by the pandemic.
The order requires lenders or servicers of mortgage loans to notify troubled borrowers — before initiating foreclosure proceedings — that forbearance plans are available if they have suffered pandemic-related financial hardship.
Hogan’s order amends his April directive suspending all foreclosure actions due to the outbreak of the COVID-19 virus.
The new order enables the Maryland Commissioner of Financial Regulation to reopen the state’s Intent to Foreclose Electronic System and resume acceptance of Notices of Intent to Foreclose on Jan. 4.
But foreclosure notices for properties covered by a federal loan cannot be issued unless the lender or servicer has complied with notice and other obligations under the federal Coronavirus Aid Relief, and Economic Security (CARES) Act, including telling borrowers of their right to request forbearance under the law, the order states.
For properties covered by a non-federal mortgage loan, lenders and servicers must notify borrowers that they can request forbearance of up to 180 days if they are experiencing a pandemic-related financial hardship. The forbearance shall be given based on the borrowers’ attestation of hardship without requiring additional documentation and without the assessment of any fees, penalties or interest, the order states.
