Emergency Mortgage Assistance Program

• The Maryland Department of Housing and Community Development administers the Emergency Mortgage Assistance Program to help Maryland homeowners avoid foreclosure. To qualify for the federally-funded program, you must have fallen behind on you mortgage payments by three to 12 months as a result of unemployment or loss of income due to reasons beyond your control. The EMA program provides no-interest loans, which can bring your mortgage balance current and reduce your monthly payments for up to 24 months. The program also allows you to defer EMA loan payments for up to five years.
  
  

HUD Counseling Service

• A free counseling service provided by the U.S. Department of Housing and Urban Development often serves as the foundation for foreclosure prevention for homeowners struggling to pay their mortgages. HUD offers the service across the United States through nonprofit agencies. Search a database of counseling agencies on the HUD website to find a counselor in your local Maryland area. HUD-approved counselors can ascertain your eligibility for foreclosure prevention plans offered through the federal Making Home Affordable program.
  
  

Making Home Affordable

• The federal government sponsors the Making Home Affordable program, which the Department of the Treasury and HUD offer nationwide. MHA programs help you prevent foreclosure through loan modifications, principal reductions, payment deferments or refinancing. The Home Affordable Modification Program serves as the primary plan offered by MHA and can help you reduce your first mortgage payments to 31 percent of your gross income. The HAMP can reduce your payments by lowering your interest rate, extending your loan term and deferring principal payments. To qualify for HAMP, you must need assistance for a primary residence that has no more than four units.
  
  If you also face difficulties paying a second mortgage, you may qualify for the Second Lien Modification Program, which offers interest rate reductions, term extensions and principal payment deferments. If you have lost a job, the MHA Unemployment Program can provide loan deferments, typically for a minimum of three months, while you look for new employment.
  
  

Foreclosure Mediation

• The State of Maryland passed the Foreclosure Mediation Law in 2010, which enables homeowners to negotiate with lenders through a mediation process. If you elect to participate in mediation, a neutral mediator can meet with you and your lender to help negotiate options for avoiding foreclosure. The mediation process can only occur after you apply for a loan modification program, such as a plan offered through MHA and after the lender has initiated a foreclosure in court. You must face foreclosure on your primary residence to participate in the Maryland mediation process.