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For homeowners facing financial hardship, finding a reliable Maryland mortgage relief program is a critical step toward securing their homes. While the most prominent recent source of aid, the Maryland Homeowner Assistance Fund (HAF), has concluded, a robust network of support and numerous alternatives remain available.
Navigating these options begins with understanding the current landscape of mortgage assistance in the state. Taking proactive, informed steps is the key to preventing foreclosure and finding a sustainable path forward.
Understanding the Closure of the Homeowner Assistance Fund (HAF)
The primary state-level program many homeowners sought for assistance, the Maryland Homeowner Assistance Fund (HAF), is now closed. The program is no longer accepting new applications because all of its funds have been fully reserved or spent.
The HAF was a temporary relief program established under the federal American Rescue Plan Act of 2021. Maryland received approximately $248 million to provide grants and loans to homeowners who experienced financial hardship due to the COVID-19 pandemic. The fund helped cover delinquent mortgage payments, property taxes, and other housing-related costs.
What HAF's Closure Means for Homeowners
The closure of this large-scale emergency fund marks a significant change, signaling a return to a more traditional ecosystem of support. This landscape includes mortgage servicers, non-profit housing counselors, county-specific programs, and legal aid services.
While the end of HAF removes a major safety net, it is crucial to recognize that its closure does not mean help is unavailable. A strong framework of assistance still exists, and understanding how to access it is the key to finding a solution.
Navigating the New Economic Landscape
Today's economic environment presents unique challenges. Higher interest rates can make traditional solutions like loan modifications more difficult to obtain, as a modified loan might result in a higher monthly payment.
Additionally, rising home values can complicate last-resort options like Chapter 13 bankruptcy due to Maryland's limited homestead exemption. This combination of factors makes it more important than ever for homeowners to proactively engage with all available resources.
Before exploring any external programs, your first action should be to communicate directly with your mortgage servicer. This is the company you send your monthly payments to, and it is legally responsible for evaluating your options to avoid foreclosure. The sooner you make contact, the more options will be available.
Lenders are often motivated to work with homeowners to find a solution, as the foreclosure process is costly and time-consuming for them. When you call, ask specifically for the "loss mitigation" department, which specializes in alternatives to foreclosure.
Primary Loss Mitigation Options
Your servicer will likely discuss several potential solutions, depending on your specific situation. These may include:
A Checklist for a Successful Call
To ensure a productive conversation with your servicer, be prepared.
Under Maryland law, you have rights. Your servicer must provide timely answers and inform you of all available options. However, it is vital to avoid common mistakes like stopping payments if you can afford them or sending a partial payment without a written agreement.
You do not have to navigate this process alone. The single most effective action a homeowner in distress can take is to contact a free, HUD-approved housing counseling agency. These non-profit organizations employ certified counselors who work for you at no cost.
A housing counselor is your personal expert and advocate. Their role is to:
This advocacy is invaluable. A housing counselor levels the playing field, managing communication objectively and ensuring your case is presented effectively. Research confirms that homeowners who work with a counselor are significantly more likely to avoid foreclosure.
To connect with a local, approved agency, call the Maryland HOPE Hotline at 877-462-7555. This statewide hotline will refer you to a reputable non-profit organization in your area.
Understanding the legal timeline of foreclosure in Maryland highlights why early action is so important. Each stage represents a deadline where your options may narrow.
The legal timeline acts as a series of closing doors. The earlier you act, the more doors remain open. Waiting until you receive court papers severely limits your options.
With the federal HAF program closed, assistance is now available through a network of state, county, and non-profit programs. A housing counselor is your best guide to these resources.
State-Level Resources
The Maryland Department of Housing and Community Development (DHCD) continues to fund a statewide network of non-profit housing counseling and legal service agencies. Additionally, the Homeowners' Property Tax Credit Program can lower a household's property tax burden based on income, helping to reduce overall housing costs.
County and City-Level Programs
Many local jurisdictions offer their own foreclosure prevention and emergency assistance programs.
| County and City-Level Programs | Program Name / Resource | Contact Information | Key Services Offered |
|---|---|---|---|
| Statewide | Maryland HOPE Hotline | 877-462-7555 | Connects to local free housing counseling & legal aid. |
| Anne Arundel County | Foreclosure Prevention Program | acdsinc.org | Free one-on-one housing counseling with a trained advisor to create a plan of action. |
| Baltimore City | Emergency Mortgage & Housing Assistance (EMHAP) | dhcd.baltimorecity.gov | Notice: All available funding has been allocated. Provided grants for past-due mortgage, taxes, and water bills. Check website for future opportunities. |
| Baltimore City | Tax Sale Coordination and Prevention Services | dhcd.baltimorecity.gov | Assists homeowners in avoiding property tax sales through deferral programs and free legal clinics. |
| Baltimore County | Foreclosure Prevention Partners | baltimorecountymd.gov | Works with non-profit partners to help homeowners prevent mortgage foreclosures. |
| Montgomery County | DHCA Foreclosure Prevention | montgomerycountymd.gov | Provides information on free foreclosure prevention counseling services available to county residents. |
| Prince George's Co. | Credit Counseling & Foreclosure Prevention | princegeorgescountymd.gov | Connects residents to the Maryland HOPE Counseling Network and other resources for foreclosure prevention assistance. |
Note: This table is a summary of key programs. Contact a housing counselor for a complete assessment of options in your area.
While a housing counselor is a financial guide, some situations require legal advice. A lawyer can defend your rights in court, represent you at mediation, and explore options like bankruptcy.
When to Seek Legal Help
You should seek legal assistance if:
Free and Low-Cost Legal Services
Many homeowners assume they cannot afford an attorney. However, Maryland has a strong network of non-profits that provide free or low-cost legal services to eligible households. This support system is a critical resource.
Key providers include:
Homeowners in crisis are prime targets for predatory "foreclosure rescue" scams. These companies prey on fear, making false promises and charging high fees for services that are either ineffective or available for free.
Red Flags of a Scam
Be extremely wary of any person or company that:
If you suspect a scam, report it immediately to the Maryland Office of the Commissioner of Financial Regulation. You can submit a complaint on their website or by calling 410-230-6077.
Facing mortgage trouble can feel overwhelming, but a clear plan can restore a sense of control. The Maryland Homeowner Assistance Fund may be closed, but a path forward exists.
Take these steps immediately to protect your home:
By taking these proactive steps, you are moving from a position of uncertainty to one of action. You are accessing the robust support systems Maryland has in place to help homeowners keep their homes.
Yes, the Maryland Smart Buy 3.0 program helps homebuyers with existing student loans. It provides up to 15% of the home's purchase price (maximum of $20,000) to pay off the buyer's student debt at closing. This program requires the full student debt of at least one borrower to be paid off.
The HomeAbility program is a specialized Maryland mortgage program for homebuyers with disabilities. It provides a conventional loan and offers up to 25% of the home's price as a second, no-interest loan to help cover the down payment and closing costs, making homeownership more accessible.
Yes, the Maryland Homeowners' Property Tax Credit Program offers relief to eligible homeowners based on their gross household income. This program sets a limit on the amount of property taxes a homeowner must pay, which can significantly lower their annual housing expenses and provide financial relief.
A grant is a form of financial aid that does not need to be repaid. A deferred loan, which is common in many Maryland mortgage assistance programs, is typically interest-free but must be repaid in the future, usually when you sell, refinance, or pay off your primary mortgage.
A deferred loan from a Maryland mortgage program, such as the Flex 5000 or 1st Time Advantage 6000, typically becomes due when the first mortgage ends. This usually happens when you sell the home, transfer ownership, refinance, or fully pay off the original mortgage loan.
The Maryland Mortgage Program (MMP) works through a statewide network of approved mortgage lenders rather than lending directly to consumers. A complete list of these state-approved lenders is available on the official Maryland Department of Housing and Community Development website to help you start the application process.
Yes, veterans can access several mortgage relief options. The Maryland Mortgage Program offers VA-guaranteed loans, and the first-time homebuyer requirement is waived for veterans using their exemption for the first time. The U.S. Department of Veterans Affairs also provides financial counseling to help veterans manage their loans.
Yes, HUD-approved non-profit housing counseling agencies in Maryland provide free services to homeowners. A certified counselor can assess your financial situation, explain your options, and may negotiate directly with your mortgage servicer on your behalf to find a sustainable solution and apply for mortgage assistance.
The Maryland Mortgage Program (MMP) is the state's primary initiative to make homeownership more affordable. It provides 30-year fixed-rate loans, down payment assistance, and closing cost help to eligible homebuyers, including first-time buyers and those purchasing in specific targeted areas, through a variety of specialized loan products.
Yes, beyond statewide programs, some Maryland jurisdictions offer localized mortgage assistance. For example, Montgomery County's Housing Opportunities Commission (HOC) provides its own down payment and closing cost assistance programs that can be combined with a state loan for purchasing a home within that county.
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Down payment assistance programs (DPAPs) are helping hands for aspiring homeowners, offering grants or forgivable loans to reduce the upfront financial burden and make buying a home a more achievable dream. These programs can be particularly beneficial for first-time homebuyers, veterans, or low-to-moderate income earners.