Maryland: Foreclosure and Short Sale Alternative

Maryland: Foreclosure and Short Sale Alternative

An alternative to foreclosure or short sale is Maryland's Emergency Mortgage Assistance (EMA) Program.

This program is designed to meet the needs of homeowners facing foreclosure due to involuntary unemployment, underemployment or who have experienced a loss of income due to medical condition.

A homeowner may receive up to $50,000.00 in either arrearage or forward payments or both. The borrower must be at least 3 months behind and less than 12 months in the arrears. The arrears will be paid and going forward payments toward the mortgage can last for up to two years not to exceed $50,000.00. The borrower's income must fall within 120% of HUD Area Median Income FY 2010 Limits and the only real estate that they can own is their principal residence.

The loan is interest free and, if certain conditions are met (i.e., the borrower resumes making the full mortgage payments), the loan will be extinguished by the end of the fifth year that the borrower resumes making his or her full and timely mortgage payments.

Funding is still available, but this is a time limited program.

The Hope Initiative