A foreclosure is when your lender takes back ownership of your home due to nonpayment of your mortgage. It can happen quickly and is more likely to occur when you fail to communicate with your lender. There are many chances over the course of the foreclosure process for you to work with your lender so that you can keep your home.
Throughout the process, you will receive many documents. These documents provide important information and may give you options to help you avoid foreclosure. It is essential that you understand what each of the documents means.
Notice of Intent to Foreclosure
The Maryland Department of Labor explains that the NOI tells you the lender may start foreclosure action against you. This is a warning notice that the lender must send you 45 days prior to filing anything with the court.
The NOI will include additional paperwork that allows you to work with the lender to avoid foreclosure. You will need to complete and return the paperwork to take advantage of this option.
Order to Docket
The OTD comes when the lender files the foreclosure with the court. Your lender can file the OTD 90 days after you miss your payment. You may have up to 120 days for the filing if you have a federal loan.
Final Loss Mitigation Affidavit
This is a document that explains the lender has reviewed your situation and determined there is no alternative to foreclosure available. You may work with the lender to try to find alternative solutions or the lender may conduct an investigation on its own. Once you get this document, it indicates the foreclosure is moving forward.