Maryland has weathered the recession fairly well, but foreclosure rates in 2009 rose to 70 percent higher than 2008 rates. Gov. Martin O'Malley proposed legislation that would require mediation between lenders and borrowers. The bill would require mediation, but it would also require lenders to make a legal document stating that they have tried all other options before filing for foreclosure.

State programs can help people modify their loans and escape foreclosure. Lenders don't publicize that information, so many homeowners are not aware of the other options. In these situations, mediation would come into play if both the lender and the borrower dispute whether the homeowner is eligible for any of the programs. The new bill would not solve the problem completely, but it would help.

If you or someone you love is facing foreclosure, modifying your mortgage may prevent you from having to file for foreclosure. To learn more, contact the Maryland mortgage modification attorneys of Chaifetz & Coyle, P.C., today by calling 443-546-4608.