When a person falls behind on their mortgage payments, their mortgage company will take steps to collect the debt. A common tool that mortgage companies use is foreclosure. Foreclosure proceedings differ slightly depending on what state the property is located, but the basics are the same. The mortgage company sells the property at a public auction. The homeowner has no control over the sale and stands to loose the equity in the property. A foreclosure sale is rarely in the best interest of the homeowner. Luckily there are ways to avoid the foreclosure even if the homeowner does not have the funds to bring the loan current. If the homeowner wants to keep the property, the first step should be to contact the mortgage company to explore any available options. If there are no viable options for the homeowner, they may stop the foreclosure sale by filing a bankruptcy case. In most cases, a Chapter 13 Bankruptcy is used to allow the homeowner to catch up the missed mortgage payments over time. Two very important benefits of a Chapter 13 Bankruptcy is that the property does not need to have any equity and the homeowner will not loose the equity that has accumulated. Many people are reluctant to file a bankruptcy case, but a Chapter 13 Bankruptcy is a very effective and common tool that should be considered. There are also many investors that offer services that will stop the foreclosure sale and allow the homeowner to keep the property. Some of these services are viable options, but I caution anyone when dealing with real estate investors. It is extremely important to read every document that is signed and to obtain a copy of every document and agreement. There are many honorable investors that truly want to help homeowners, but there are also some whose only intent is to steal all of the equity in the property. If you are facing foreclosure and would like assistance in negotiating with your mortgage company or investors, or are considering a Chapter 13 Bankruptcy, do not hesitate to Contact Me.

Once foreclosure proceedings begin, the mortgage company is required to provide notice of the sale and to give the homeowner an opportunity to dispute the debt. Sometimes the procedures are not followed properly and provide a basis for objecting to the foreclosure sale. If you believe that Maryland foreclosure proceedings have been initiated against you improperly or that a Maryland foreclosure sale was conducted improperly, contact me for assistance.

If a property is sold at a foreclosure auction, there will be an accounting of the sale. This accounting lists the proceeds from the sale and outlines where those proceeds were applied. If the proceeds from the auction were not sufficient to pay the outstanding mortgage balance, costs, and liens on the property there will be a deficiency. The homeowner is responsible for paying the deficiency even though they no longer own the property. In some cases, the proceeds from the sale exceed the mortgage balance, outstanding liens, and foreclosure costs. In this case, there are surplus proceeds from the sale and the homeowner should make a claim for this money. If your property was sold at a foreclosure sale, you should carefully review the accounting of the sale to determine if there is a deficiency or surplus proceeds. If you need assistance with post foreclosure matters in Maryland, Contact Me immediately.

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