Under Maryland's foreclosure mediation program, which of the following borrowers is eligible to request mediation before a residential foreclosure sale proceeds?
Correct Answer
C) Owner-occupants of residential properties who respond to the Notice of Intent to Foreclose within the required timeframe
Maryland's foreclosure mediation program is available to owner-occupants of residential properties (not investors or commercial borrowers) who respond to the Notice of Intent to Foreclose within the required timeframe. Under Maryland law (Real Property Article § 7-105.1), the lender must send a Notice of Intent to Foreclose, and the borrower has a specific window to request mediation. The mediation provides an opportunity to explore loss mitigation options such as loan modification, forbearance, or short sale before the foreclosure sale proceeds. Timely response is critical — failure to respond waives the right to mediation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
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