BALTIMORE, MD—The Maryland Department of Labor’s Office of the Commissioner of Financial Regulation on Wednesday the extension of the moratorium on new residential foreclosures through June 30, 2021. The moratorium, originally established by the Governor’s executive order issued April 3, 2020 and continued through subsequent executive orders and regulatory guidance, was due to expire on May 3, 2021. The new extension date aligns with the expiration of federal foreclosure moratorium.
“Our department’s Office of Financial Regulation has further extended the moratorium on new residential foreclosures through the end of June to keep Marylanders in their homes as we emerge from this pandemic,” said Labor Secretary Tiffany P. Robinson. “This extension of the moratorium provides homeowners facing financial hardships with additional time to consult with their mortgage lender to find solutions and resume making payments in order to avoid foreclosure.”
Maryland Commissioner of Financial Regulation Antonio P. Salazar has issued new regulatory guidance to mortgage lenders, loan servicers, and collection agencies stating that the statewide reporting system for new foreclosure notices will remain closed through June 30, 2021. While the reporting system is closed, lenders are prohibited from sending a “notice of intent to foreclose” to homeowners. This notice is the first step for initiating most residential foreclosures in Maryland.
“Our Office continues to monitor economic and mortgage delinquency trends in the state, the status of the virus, and governmental and public health responses,” said Commissioner Salazar. “Many factors that we monitor are moving in the right direction. Continuing the prohibition on new foreclosures is consistent with the current status of those factors and with our Office’s consumer protection focus. An extension of the moratorium gives Maryland homeowners that remain financially impacted by the pandemic an opportunity to get back on their feet.”
Homeowners who are facing foreclosure or at risk of defaulting on their mortgage should contact the company where they send their monthly payments to request assistance. Companies are offering loan forbearance and other temporary payment relief to homeowners who are experiencing economic hardship due to the COVID-19 pandemic. Homeowners can also call the Maryland HOPE hotline at 1-877-462-7555 for a referral to a nonprofit housing advocate.