A new bill was signed into law late last month which provides homeowners the opportunity for more protection against foreclosure.

The new law increases the possibility of foreclosure mediation. It makes it necessary for lenders to forewarn homeowners, providing a 45 day warning before foreclosure action is first filed in court in the form of a mortgage modification or loss-mitigation application. Lenders must also pay a $300 foreclosure fee when filing for action.

The homeowner is then given 15 days after receiving their final loss-mitigation notice to file for foreclosure mediation. Once sent to the Circuit Court, the homeowner is expected to pay a $50 fee.

The bill originally made foreclosure mediation a necessary step, but the voluntary route was taken instead. Governor O'Malley proposed legislation in 2008 with significantly more aggressive actions taken to protect homeowners, including making the foreclosure period 150 days instead of 15 days.

If you or someone you know is facing foreclosure, the Maryland foreclosure defense lawyers of Chaifetz & Coyle, P.C., may be able to help you. Contact us at 443-546-4608, and let us provide you with legal advice that could make the difference today.