Update on Maryland Foreclosure Process - Reopening of Portal

The Maryland foreclosure process reopened July 1st when DLLR reopened the portal to allow the filing of the NOI. As a reminder, for those servicers that sent the forbearance letters provided for in Governor Hogan’s order 20-10-16-01 and thereafter restated they will effective July 1st, be able to move forward with the mailing and certification of the mailing of the NOI. This is for non-GSE or government related loans that are not subject to moratoriums which have been extended through July 31, 2021.
 
Those servicers that did not elect to send the pre-foreclosure 180 day forbearance notice will not be able to proceed until the State of Emergency terminates. The State of Emergency in Maryland is currently scheduled to terminate August 15, 2021.
 
The prior emergency orders provide that those lenders who offered forbearance agreements, as outlined below, would be able to proceed when DLLR opened the portal. The portal is now going to open forty-five (45) days prior to the termination of the State of Emergency:

• Residential foreclosures on federally backed mortgage loans: Until the state of emergency is terminated, a sale of residential property shall not be effective unless:
• thirty (30) days prior to NOI, the servicer has sent a written notice to the borrower stating the borrowers right to request a forbearance; and
• the Servicer has complied with all of its obligations under the CARES Act and any GSE imposed requirements.
• Residential foreclosures on non-federally backed mortgage loans: Until the state of emergency is terminated, a sale of residential property shall not be effective unless:  
  • the servicer has sent notice to the borrower of their right to request a 180 day forbearance (if affected by COVID, regardless of delinquency) which may be extended another 180 days;
  • if the borrower requests forbearance, the servicer must provide forbearance without requiring more documents, other than attesting to hardship caused by COVID, or fees, penalties or interest (other than in normal course); and
  • during a forbearance, the servicer has not accrued any fees, penalties or interest beyond scheduled amounts.