Alternative Dispute Resolution
are eligible to avoid foreclosure known as a loss mitigation analysis. If completed by the lender before the foreclosure is filed, the borrower receives a Final Loss Mitigation Affidavit with the Notice to Foreclose. If not completed by the lender, the borrower receives a Preliminary Loss Mitigation Affidavit with the Notice to Foreclose. Te time line varies slightly with either. Te general time lines for foreclosure would advance as
follows:
Final Loss Mitigation Analysis Day 1 - Default
Day 45 - Notice of Intent to Foreclose/Loss Mitigation Application
Day 90 - Complaint or Order to Docket Foreclosure/ Request for Mediation/Final Loss Mitigation Affidavit
Day 105 - Last day for homeowner to request foreclosure mediation If mediation is not requested or Motion to Stay the Sale is not filed, the property may be sold on Day 135
Day 110 - If mediation is requested, Circuit Court sends request to Maryland Office of Administrative hearings.
Day 170 - Foreclosure mediation must take place by this date unless postponement is requested
Day 185 - Foreclosure Sale can be held unless a motion to stay the sale is filed
Preliminary Loss Mitigation Analysis Day 1 - Default
Day 45 - Notice of Intent to Foreclose/Loss Mitigation Application
Day 90 - Complaint or Order to Docket Foreclosure/ Preliminary Loss Mitigation Affidavit
Day 118 - Final Loss Mitigation Affidavit/Form to Request Mediation sent by certified and regular mail Day 133 - Last day for homeowner to request mediation
If mediation is not requested or motion to stay the sale is not filed, the property may be sold on Day 148
Day 138 - If mediation is requested, Circuit Court sends the request to Maryland Office of Administrative Hearings
Day 198 - Foreclosure mediation must take place by this date unless postponement is requested
Day 213 - Foreclosure sale can be held unless a motion to stay the sale is filed
A borrower must request mediation by filing such request
within fifteen days from the date of personal service if a Final Loss Mitigation Affidavit was filed with the Complaint/ Order to Docket, or within fifteen days of the postmark when the Final Loss Mitigation Affidavit is mailed. Te Request must be filed with the Circuit Court in which the foreclosure proceedings are filed, and a copy must be sent to the foreclosure attorney listed in the case. Te borrower must include the non-refundable $50 fee with the Request. Te lender is charged with a fee of $300.00 in addition to the normal filing fee pursuant to Real Property Section 7-105.1(d)(2)(vii). Te fees collected will be used to add twelve staffers to the Office of Administrative Hearings and to pay for nonprofit housing counseling programs. Te state expects to handle up to 6,000 mediations in 2011. Te lender does not have to agree to mediation, and may
object by showing that mediation is inappropriate in a certain case. Te secured party has fifteen days to move to strike which must be accompanied by an affidavit. Te borrower has fifteen days to respond. Mediation referral moves forward while the motion is pending before the Court. Te Circuit Court decides any such objections. Tere is a presumption of entitlement of the borrower to mediation. If mediation is requested, the Circuit Court must notify the Office of
Trial Reporter / Fall 2010 33
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