Timeline:
around 90 days
Redemption:
No
Deficiency
Judgments: Yes
Judicial
Foreclosure: Yes
Non-Judicial
Foreclosure: Yes
Security
Instruments: Deed of Trust, Mortgage
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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.
Maryland Foreclosure Law