Gov. Martin O'Malley, D-Md., has signed emergency legislation intended to help thousands of Maryland homeowners who are at risk of losing their homes and to prevent future generations of homeowners from losing their homes due to foreclosure. (See ‘MD Assembly Passes Homeowner Aid Bill.’)
The Real Property – Recordation of Instruments Securing Mortgage Loans and Foreclosure of Mortgages and Deeds of Trust on Residential Property bill significantly lengthens the foreclosure process from 15 days to approximately 150 days, making it fairer for homeowners and providing them with more time and notice before a foreclosure sale, the governor's office explains. It requires a lender to wait 90 days after default before filing the foreclosure action and to send a uniform Notice of Intent to Foreclose to the homeowner 45 days prior to filing an action.
The Real Property – Maryland Mortgage Fraud Protection Act is a comprehensive criminal mortgage fraud statute that makes mortgage fraud a crime for anyone involved in the mortgage transaction. The bill provides for significant fines and imprisonment for violators, and it also gives the court authority to order restitution and forfeiture and enhanced penalties for cases involving vulnerable adults.
The Protection of Homeowners in Foreclosure – Prohibition on Foreclosure Rescue Transactions – Enforcement bans foreclosure rescue transactions. The bill as passed also provides additional consumer protections for people who are trying to sell their homes because they are in default, the governor's office adds.
