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is anticipated that while many attorneys sought to file before July 1st and the requirements of the new statute, there remain a large inventory of foreclosure proceedings yet to be filed. Of the foreclosure filings, as of this date not a single mediation session has been scheduled, a fact more likely reflective of the statutory timing requirements of service of required documents 45 days prior to filing foreclosure proceedings. It is important to recognize first and foremost that
commercial and non-owner-occupied real estate are not eligible for foreclosure mediation, and that most borrowers would be advised not to wait for foreclosure proceedings before beginning efforts to save their homes. Real Property Section 7-105.1(c)(4) Notice of Intention
to Foreclose will now require a new statement recommending that the borrower seek housing counseling services, as well as telephone and internet references of non-profit and government resources available. It must also contain an explanation and time line of the Maryland foreclosure process. Under Real Property Section 7-105.1(c)(5) the package itself must contain: a loss mitigation application for applicable loss mitigation programs; instructions for completion and a telephone number to confirm receipt of the application once filed; a description of eligibility requirements for the loss mitigation programs offered by the secured party that may be applicable to the loan; and, a preprinted return envelope. Real Property Section 7-105.1(d)(2)(viii) provides
Mark Wilson 443-589-2460 (direct) 1-888-MCENROE (623-6763)
Hunt Valley, MD & Vienna, VA *Servicing MD, DC, VA & PA*
that the Order to Docket must be accompanied by either a Preliminary or Final Loss Mitigation Affidavit. Te Preliminary Loss Mitigation Affidavit asserts that a final analysis has not been completed. It must be accompanied by a loss mitigation application and a description of the eligibility requirements for loss mitigation programs applicable to the loan, instructions for completion and preprinted envelope for foreclosure attorney. A Final Loss Mitigation affidavit may not be filed sooner than 28 days after service on the borrower, Real Property Section 7-105.1(g), but the inability to contact or obtain cooperation of the borrower is now a valid basis for the Final Affidavit. A Final Loss Mitigation Affidavit states that all loss
mitigation analysis is complete and no loss mitigation is available in this instance. Note that pursuant to Real Property Section 7-105.1(e) the lender’s failure to contact the borrower or the borrower’s failure to cooperate is not a basis for final affidavit at the initial filing stage. With a Final Loss Mitigation Affidavit, the Order to Docket must contain a Request for Foreclosure Mediation in the form set forth by CFR pursuant to Real Property Section 7-105.1(d)(2)(x) and preprinted envelopes to both court and foreclosure attorney. Te Maryland law requires that the lender perform a review of the borrower’s circumstance to see if he/she/they
32 Trial Reporter / Fall 2010
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