Maryland Foreclosure Laws
Expected Timeline: About two months
Security Instrument: Mortgage or Deed of Trust
Type of Process: Judicial or Nonjudicial
Protections for Servicemembers: Md. Code Ann. [Pub. Safety] § 13-705
Time to Respond: Lender not required to notify borrower of lawsuit. Notice of intent to foreclose must be sent to homeowners within 45 days before sheriff sale. Notice must be by first class/certified mail with return receipt requested. Notice must also be published for three consecutive weeks. Notice must be served on homeowners at least 10 but not more than 30 days before auction.
Reinstatement Period: Allowed until one day before sale.
Protections for High-Cost Mortgages: None.
Redemption Period: Homeowners may request redemption from court.
Eviction Process: No specific timelines for eviction. New owner will go to court to get order and process can take two weeks to a month. Longer process may be a result of homeowners answering complaint.
Deficiency Judgments: Allowed, if foreclosing party requests it of supervising court after sale.
Limits on Deficiency Judgments: Report of sale and audit are required, but a deficiency can be obtained by filing a motion in court after the sale has been conducted.
Cash Exempted in Bankruptcy: $6,000 for single person, $12,000 for married couple.
State Statutes: Md. COde Ann. [Real Property] § 7-105
Both the Non-Judicial and Judicial Foreclosure processes are used in Maryland . The Judicial Foreclosure process is used when the original loan documents do not contain a power of sale clause. The loan documents also must not contain an assent to a decree of foreclosure.
If neither of these clauses a present, the lender must sue the borrower in court to obtain a decree of sale. If the court rules that a default has occurred, it will fix the amount due and give the borrower a reasonable amount of time to cure the default.
The Non-Judicial Foreclosure process is used when the loan documents contain a power of sale clause, authorizing the lender to sell the property in the event the borrower defaults. The lender must file an order to the court’s docket before proceedings can begin, but no hearing is required.
A copy of the notice of sale must be published for three (3) consecutive weeks before the sale. Also, the borrower must be served a copy of the notice of sale by registered mail not more than thirty (30) days before the sale and not less than fifteen (15) days before the scheduled sale date.
The person who conducts the sale must file a report with the clerk of the court within thirty (30) days after the sale of the property. The clerk issues a notice that the sale will be ratified within thirty (30) days, unless cause is shown to invalidate the sale. This notice must also be published for three (3) consecutive weeks during the thirty (30) day period.
The lender has the right to sue the borrower for a deficiency judgment in the event the property does not sell for an amount to cover the loan balance due plus costs. The deficiency suit must be filed within three (3) years.
Maryland allows sale dates to be postponed, but the new sale date must be published in the same manner as the original notice of sale.
State Website: www.mlis.state.md.us