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Foreclosure Mediation
Posted by: The Law Offices of Richard B. Rosenblatt, PC
September 27, 2011
Topic: Foreclosure

Maryland has had mandatory Foreclosure Mediation for almost one year as a condition that must be met before the lender can complete the foreclosure process. It is very important that after receiving the package of disclosures from the lender during the foreclosure case that the Request for Foreclosure Mediation form be completed and that the filing fee of $50.00 paid to the Clerk for the Circuit Court within the 25 day deadline. The Request form is mailed by the borrower in the two envelopes that are enclosed with the lender's disclosures. The original of the request for Foreclosure Mediation is mailed to the Court and the copy to the lender.

My law firm has found that it is often possible to get the lender to delay the foreclosure sale date with proper preparation and a demonstration that a loan modification is feasible. Then, the loan modification is fast-tracked with the foreclosing attorney often in the loop to make sure that the process is moving forward. This is another opportunity for borrowers to save their home before it is necessary to file a chapter 13 bankruptcy to stop the foreclosure sale. While Chapter 13 can be very effective in stopping the foreclosure sale and providing five years to catch up on missed payments, only a loan modification can result in a dramatically reduced interest rate resulting in a lower monthly payment.

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Loan Modification Hardship Letters
Posted by: The Law Offices of Richard B. Rosenblatt, PC
September 19, 2011
Topic: Loan Modification

This is the first entry for the RosenblattLaw blog. I want to discuss a topic that arises within our work to assist clients with obtaining loan modifications. One of the requirements of the loan modification package is to prepare a hardship letter. It is important to understand that the hardship form the lender's perspective needs to be something that is being resolved. The hardship should relate directly to why the mortgage payments have not been made. This could be an illness, loss of job, decreased income, etc. However, the key to the hardship letter is demonstrating that the failure to pay the mortgage occurred in good faith and is now resolved. The hardship letter needs to conclude with how the hardship has been, or is being resolved. Ths could be that the illness is better, increased income through a part time job, or even a new tenant or family contributions. The bottom line is that the lender is looking to see that the hardship is resolved and that it is likely that you now have the ability to make the mortgage payments at the level to be set by a reduction of the interest rate or other accommodation by the lender.

I also recommend that you seek the assistance of qualified legal counsel to assist you with the loan modification since the lenders and servicers can be difficult to deal with and there are traps for the unwary that can result in your loan modification being denied. Private attorneys that handle loan modifications have the skill set to deal with the lenders and to advocate on your behalf for approval of the loan modification. At The Law Offices of Richard B. Rosenblatt, PC, we pride ourselves on aggressively monitoring and following up on the loan modifcation so it does not languish and so all of the lender's concerns can be promptly addressed. We also understand the process thoroughly having handled hundreds of loan modifications. It is best to do it right with proper representation the first time since a denial will often hurt your chances of approval in the future.

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