Maryland Foreclosure Assistance: Free Counseling, Mediation, and Legal Help

Maryland foreclosure assistance today

If you are behind on your mortgage in Maryland, the help that exists right now is mostly free advice and legal protection, not a check to cover your arrears. That can feel disappointing, but these services work. A good housing counselor knows what each servicer and investor allows, and Maryland’s foreclosure law gives homeowners more steps and more time than many states.

The Maryland Department of Housing and Community Development (DHCD) says the first move is to talk with a HUD-approved housing counselor, who gives free, objective guidance and can work with your lender for you. DHCD also lists legal services providers by region and explains the mediation program run through the courts.

Here is how the main kinds of help compare:

All of these are free or low-cost. You never need to pay a private company to get any of them.

What happened to the Homeowner Assistance Fund

The Homeowner Assistance Fund (HAF) was a federal program that sent money to states to help homeowners catch up after the pandemic. Maryland’s version paid mortgage arrears and some housing costs for eligible owners. The state program stopped taking new applications in September 2023 after its funds were fully committed.

The U.S. Treasury now says the period of performance for HAF awards ended on September 30, 2026. In practice, no state can use HAF money to help homeowners any longer. If a website, caller, or ad says it can get you “HAF money” today, treat it as a red flag.

Some counties and nonprofits run small local programs from time to time, such as one-time grants or help for older homeowners with property taxes. A housing counselor or Maryland 211 will know what is open in your area this month. You can also read our wider guide to mortgage relief programs for national options.

Start with a free housing counselor

A HUD-approved housing counselor is the closest thing to a guide through the whole process. The state’s Office of Financial Regulation says foreclosure prevention counseling is free for all Maryland homeowners and that counselors can help you apply for assistance, understand your options, and negotiate with your servicer.

Ways to reach one:

• Maryland homeowner hotline: 1-877-462-7555 for a referral to an approved counselor or legal services agency.
• Maryland HOPE hotline: 1-800-569-4287, listed by DHCD.
• National HOPE hotline: 1-888-995-4673, which DHCD describes as available around the clock.
• HUD counselor search: the HUD housing counselor page lets you search by ZIP code.

Before your first appointment, gather your last two mortgage statements, any letters from your servicer or the court, two months of pay stubs or benefit letters, recent bank statements, your most recent tax return, and a simple list of monthly bills. Write a short hardship letter that explains what happened, when, and what has changed. The counselor will help you polish it.

Counselors are busy, especially in Baltimore City and Prince George’s County, so call more than one agency if the first has a wait. Keep going to your appointments even if you hope things will work out on their own.

Asking your servicer for loss mitigation

“Loss mitigation” is the industry term for anything that avoids a foreclosure. Your servicer is the company you send payments to, and it decides which options you qualify for based on rules from the loan’s owner (such as Fannie Mae, Freddie Mac, FHA, VA, or USDA).

The Consumer Financial Protection Bureau says a servicer generally must try to reach you within 36 days of a missed payment and must send written notice of loss mitigation options no later than 45 days after you become delinquent. It must also assign you a point of contact who can explain your choices.

Common options include:

• Repayment plan: you pay your regular payment plus part of the past-due amount each month.
• Forbearance: payments pause or drop for a short time, then you repay the skipped amount later.
• Loan modification: the terms change, often by adding the arrears to the balance or extending the term, to make payments affordable.
• Partial claim: for some FHA loans, the missed amount becomes a separate, interest-free lien due when you sell or refinance.

The Office of Financial Regulation warns that if you do not respond to your servicer, it may deny your application and move ahead with foreclosure. It also advises against sending partial payments unless the servicer agrees in writing first. Keep copies of everything you send and write down the date, time, and name of each person you speak with.

Veterans with VA-backed loans have extra help. See our guide to foreclosure assistance for veterans.

The Maryland foreclosure timeline

Maryland foreclosures go through the circuit court, and the law sets out a series of notices. The table below follows the steps described by the state’s Office of Financial Regulation summary for owner-occupied homes. Exact dates in your case can differ, so read every paper you receive.

The state also notes that a sale can happen 15 days after a mediation that does not resolve the case, or, if no mediation is requested, 45 days after the Final Loss Mitigation Affidavit is served (30 days after it is mailed). Until the buyer takes possession, you remain responsible for upkeep and taxes even if you move out early.

Federal employees who are furloughed without pay during a government shutdown may be able to ask for a temporary pause in foreclosure under Maryland Real Property § 7-105.1(b-1), according to the Office of Financial Regulation. Ask a legal aid lawyer whether it applies to you.

How foreclosure mediation works

Mediation is one of the strongest tools in Maryland foreclosure assistance. DHCD describes it as a formal meeting between you, your lender, and a neutral judge. The judge does not decide the case, but helps both sides look for an alternative to foreclosure.

Who can ask for it

You must live in the home as your primary residence. The program applies to foreclosures filed in court on or after July 1, 2010, according to the Office of Administrative Hearings (OAH).

Deadline and fee

You have 25 days from receiving (or the mailing of) the Final Loss Mitigation Affidavit to file the request with the circuit court, along with a $50 non-refundable fee. DHCD is blunt about the deadline: if you miss the 25-day window, you will not get another chance at mediation. If you cannot afford the fee, ask the circuit court clerk or a legal aid office whether you can request a fee waiver when you file.

What happens next

• The court sends your request to OAH, which assigns an administrative law judge and schedules the session within 60 days.
• OAH mails a Notice of Mediation with the date, time, and a list of documents. Those documents are due no later than 20 days before the session.
• OAH says sessions are currently held remotely on Webex, by computer or phone, and you do not need a camera.
• To postpone, send a written request that reaches OAH at least 5 business days ahead, with three alternative dates within the next 30 days.

If you do not appear, the case goes back to the circuit court and the sale can proceed. If the lender does not appear, the court may dismiss the foreclosure. After mediation, you have 15 days to file a motion with the circuit court to stay the sale and dismiss the case if you have grounds. A lawyer can tell you whether you do.

The state advises not to wait for mediation to get help. It comes late in the process, and you will do much better if a counselor has already helped you submit a complete loss mitigation application.

Free and low-cost legal help by region

DHCD says to contact a legal services provider as soon as you receive a Notice of Intent to Foreclose or an Order to Docket. These are the providers DHCD lists:

Renters living in a home that is being foreclosed have rights too. In Baltimore City, DHCD lists the Public Justice Center (410-625-9409) for tenants affected by foreclosure.

If you are handling the case on your own, the Maryland Court Help Center gives free help to people without a lawyer at 410-260-1392.

Catching up before the sale

Maryland law has long allowed a homeowner to “cure” the default and reinstate the loan by paying all past-due payments, fees, and costs up to one business day before the foreclosure sale (Real Property § 7-105.1). You can ask the servicer or its law firm for the exact reinstatement amount in writing. Confirm the current rule and the exact figure with a lawyer before you send money, because fees can grow quickly late in a case.

Money for a reinstatement can come from savings, family help, a retirement account (ask a tax professional first), or a one-time local grant. Some people use a tax refund or back pay from benefits. Our Maryland hardship relief guide covers state cash, utility, and emergency help that can free up money for the mortgage.

Options if keeping the home is not realistic

Sometimes the numbers just do not work. That is not a failure, and leaving on your own terms is often far better than a completed foreclosure. Ask your counselor about:

• Selling the home before the sale date, especially if you have equity. A buyer can pay off the loan at closing.
• Short sale: the lender agrees to accept less than you owe from a sale.
• Deed in lieu of foreclosure: you sign the home back to the lender, sometimes with moving money.
• Bankruptcy: Chapter 13 can stop a sale and let you repay arrears over time. Talk to a lawyer before filing.

Ask in writing whether the lender will waive any remaining balance (a deficiency) after a short sale or deed in lieu. If money is left over after a foreclosure sale (surplus funds), you may be able to claim it through the court case, so do not ignore court mail after you move.

Spotting foreclosure rescue scams

People facing foreclosure are a target for fraud. DHCD and the Office of Financial Regulation list these warning signs:

• Asking for a fee before doing any work. In most situations, charging up front for this kind of help is illegal in Maryland.
• Asking you to sign over your deed or transfer ownership “temporarily.”
• Telling you to send mortgage payments to them instead of your servicer.
• Promising to “save” your home or to stop the foreclosure for sure.
• Telling you to stop talking to your servicer, counselor, or lawyer.

Report suspected scams to the Office of the Commissioner of Financial Regulation at 1-888-784-0136 or the Attorney General’s Consumer Protection Division at 410-576-6550. The CFPB also explains how to spot foreclosure relief scams. Real help, from counselors to mediation, never costs more than the court fee.

What to do this week, step by step

1. Open every letter from your servicer and the court, and note each deadline on a calendar.
2. Call 1-877-462-7555 and ask for a referral to a free housing counselor or legal aid office near you.
3. Call your servicer, ask for a loss mitigation application, and ask who your point of contact is.
4. Gather documents: statements, pay stubs, bank statements, tax return, bills, and a hardship letter.
5. Send a complete application and keep proof of the date you sent it.
6. If you get a Final Loss Mitigation Affidavit, file your mediation request and $50 fee within 25 days.
7. Keep living in and caring for the home and keep going to every meeting and hearing.

Related guides

• Maryland mortgage relief program
• Emergency help with mortgage payments
• Mortgage relief programs
• Maryland hardship relief

Frequently asked questions

This guide is general information, not legal advice. Deadlines in your case come from the notices you receive and the court. National Relief Program is an independent website and is not affiliated with the State of Maryland or any government agency. Applying for official programs and using housing counselors is free.