Behind on Mortgage Payments in Maryland? What Happens in the First 120 Days

If you have missed one or two mortgage payments, you are in the stage with the most options and the most time. No foreclosure case exists yet, and federal and Maryland rules set a minimum sequence of notices before one can be filed. Here is what happens month by month, and what to do at each point.

What happens after a missed payment

These are minimums. Many servicers move more slowly, but you can’t count on it. Once a case is filed, the court process takes over; the Order to Docket guide explains what follows.

The Notice of Intent to Foreclose

Before filing, a Maryland lender must send a Notice of Intent to Foreclose at least 45 days ahead. It must include a loss mitigation application for programs that apply to your loan. Open it, note the date, and treat it as the point where getting your application in becomes urgent.

Five things to do now

1. Call a housing counselor first. Maryland HOPE, run by the Department of Housing and Community Development, connects homeowners with free counselors at 877-462-7555. HUD’s line, 800-569-4287, also finds approved counselors. A counselor can help you prepare the application and talk to the servicer.
2. Ask the servicer for a loss mitigation application, and send it complete. Federal rules give added protections to a complete application received early, including limits on moving ahead with foreclosure while it is being reviewed. Send it in a way you can prove, and keep copies.
3. Write down a realistic budget. Repayment plans and modifications only help if the new payment fits. Be honest about whether the hardship is temporary.
4. Keep a log. Note every call (date, name, what was said) and keep every letter. If a servicer isn’t following the rules, you can file a complaint with Maryland’s Office of Financial Regulation (410-230-6077).
5. Don’t pay anyone to “save” your house. Free counseling exists. Be wary of anyone who asks for an upfront fee, asks you to stop talking to your servicer, or asks you to sign over the deed.

When keeping the house may not be realistic

Sometimes the numbers don’t work even with a modification: the income loss is permanent, the house needs repairs you can’t fund, or there are other debts against it. If you have equity, selling before a foreclosure is filed usually leaves you the most room, because there is no court deadline yet. The pre-foreclosure sale guide walks through the payoff, equity vs. short sale, and the protections Maryland gives sellers in default. For the full range of options, from forbearance to deed-in-lieu, see the Maryland foreclosure help guide.

If you are also behind on property taxes, that runs on a separate track with its own deadlines. The Maryland tax sale guide covers it.