The Final Loss Mitigation Affidavit in Maryland

Loss Mitigation Affidavit in Maryland

You are behind on your mortgage and have been receiving packets of mail from your lender. After receiving notices of default, you start getting documents that look more serious. First, you receive a “Notice of Intent to Foreclose.” 45 days later, your lender will file an “Order to Docket Foreclosure” in the Circuit Court. This often includes a “Preliminary Loss Mitigation Affidavit.” Your lender will then send you a Final Loss Mitigation Affidavit after 118 days from the date of your first missed mortgage payment. This is a very important document because it means that foreclosure is coming soon. However, this document does give you some options before the foreclosure occurs.

In this article, we will break down what the final loss mitigation affidavit in Maryland is and discuss your best options to save your home.

What is the Final Loss Mitigation Affidavit in Maryland?

The “Final Loss Mitigation Affidavit in Maryland” is a document from your lender (or their representative) about efforts they have made to determine if you qualify for any loss mitigation options. This can include a loan modification, deed-in-lieu of foreclosure, short sale, or repayment plan. Your lender will often write that they have exhausted all options and their only option is foreclosure. This is often filed alongside the Order to Docket Foreclosure.

The Final Loss Mitigation Affidavit in Maryland looks like this:

Example Final Loss Mitigation Affidavit
Example of a Final Loss Mitigation Affidavit

This is one of the last documents you will get before your lender schedules a foreclosure and auctions off your home.

You may even think you have applied for a loss mitigation option, such as loan modification, but your lender may not have accepted your application because it is incomplete. Or there may be other issues that you are not aware of, such as outstanding liens or lawsuits.

Having an experienced attorney like Steiner Law Group on your side can make all the difference. If you are applying for a loan modification, Steiner Law Group can make the process smoother-and you can expect to be well-informed about everything that is happening.

“What are my options?”

If you have received a final loss mitigation affidavit, you do have options, but you have to take action now. The sooner you take action, the more options there are available to you.

Here are some of the options to save your home that may be available to you:


If your lender has determined that no loss mitigation options are available, it will then proceed to foreclosure. Foreclosure mediation is an opportunity for you to sit down with your lender at the Office of Administrative Hearings in Hunt Valley, Maryland-to see if there are any other options available to you other than foreclosure. If you wish to request foreclosure mediation, you must do so within 25 of receipt of the Final Loss Mitigation Affidavit in Maryland.

Loan Modification

Loan modification is a powerful tool that can be used to stop foreclosure. It is not taking out a new loan or refinancing. Rather, it alters the terms of the loan itself. The goal of a loan modification is to reduce your monthly mortgage payments to something you can afford. This can be done by changing the loan term, lowering the interest rate, or reducing the principal balance.

Loan modification is a great option to save your home-if you are eligible and complete the application properly. However, the loan modification process is complicated and can be challenging to do on your own. It requires all sorts of application materials, such as:

  • A completed questionnaire with personal, property, and mortgage information
  • Bank statements
  • Tax returns
  • Pay statements
  • An Income and expense financial worksheet
  • A Hardship Letter

Steiner Law Group is an experienced loan modification and bankruptcy firm. If you are eligible for a loan modification, we will work with you to communicate effectively with your lender, keep track of the various deadlines, get your application materials together and submit them on time, write a hardship letter, and get the best deal possible so you can save your home.

In some cases, payments are only reduced by a few dollars a month, which practically helps no one. Steiner Law Group will make sure that this does not happen.

Chapter 13 Bankruptcy

If you are not eligible for a loan modification or have too much other debt, chapter 13 bankruptcy may be your solution. Chapter 13 is a way out that allows you to keep your home and address any other debt. When you file for chapter 13 bankruptcy, an “automatic stay” goes into effect, which prohibits the lender from foreclosing or attempting to collect their debt.

Filing for chapter 13 bankruptcy allows you to receive debt relief in exchange for setting up a 3-5 year payment plan with your creditors. During that time, your home cannot get foreclosed on as long as you make your mortgage payments and chapter 13 plan payments.

A good bankruptcy attorney will help you iron out the details and lay out the best possible plan for you. Filing for bankruptcy is complicated, challenging, and not something you want to do alone! Steiner Law Group is an experienced and trustworthy bankruptcy firm that has helped clients throughout Maryland discharge millions of dollars of debt. Your home is at stake, you cannot afford to sit back and do nothing!

A Good Lawyer Will Advise You Which Way to Go

Unsure if you should request mediation? Ask for a loan modification? Ask for another loss mitigation option? File for chapter 13 bankruptcy? That’s okay! It is the job of an experienced loan modification and bankruptcy attorney to advise you on which option is best, so you can get your finances in order and save your home.

Foreclosure Mediation and the Final Loss Mitigation Affidavit in Maryland

If you do not request foreclosure mediation, your lender can schedule a foreclosure auction 45 days after receipt of the Final Loss Mitigation Affidavit in Maryland or 30 days from when the Final Loss Mitigation Affidavit was mailed.

Take Action Today

If you have received a Final Loss Mitigation Affidavit in Maryland, you do not have much time to stop your home from being sold at foreclosure. However, you do still have options. Contact Steiner Law Group today to find out about what you can do to save your home!

If you have questions about the Final Loss Mitigation Affidavit in Maryland, loan modification, or chapter 13 bankruptcy, contact Steiner Law Group today at (410) 670-7060 to learn how you can save your home foreclosure.

Avatar of Eric Steiner, Esquire

About Eric Steiner, Esquire

Mr. Steiner graduated from the University of Michigan Law School in 2006. Since then, he has focused his practice on bankruptcy, real estate, commercial and consumer collections, including representing the third largest lender in the greater Baltimore area.