Maryland
When you develop a definite plan of action with
well-timed, well-informed steps, you can stop
the foreclosure process and save your home. We
have outlined the foreclosure process for the
state of Maryland.
Judicial Foreclosure Available: Yes
Non-judicial Foreclosure Available: No (but
assent to decree is allowed)
Maryland offers two basic methods of
foreclosure:
power of sale foreclosure, in which the lender
or another person named in the mortgage or deed
of trust, may sell the property and
assent to decree foreclosure, in which the
borrower agrees to permit the court to order
foreclosure.
In either case, however, the lender must file a
lawsuit in court to foreclose. The same is true
if the mortgage instrument lacks either a power
of sale clause, or an assent to decree clause,
but in that event, the lawsuit will be more
complicated.
When the mortgage contains a power of sale or
assent to decree clause, and if 25 percent of
the involved lenders (as measured by the
percentage of the total dollars of mortgage debt
against the property) consent or make
application for sale, then no service of
process, answer or hearing is required. This
simplifies the lawsuit. On the other hand, if
the mortgage contains neither a consent to a
decree clause nor a power of sale clause, or if
a foreclosure sale is desired prior to the
court's final decree, then there must be service
of process, an answer and a hearing. However, in
the latter case, 25 percent of the lenders do
not have to join in filing the initial lawsuit.
Power of Sale Foreclosure
Power of sale clause foreclosures must be done
under court supervision in Maryland. A person
desiring foreclosure must file a lawsuit asking
for foreclosure pursuant to the power of sale
clause. The lender must do the following:
Include in the lawsuit paperwork a sworn
statement of the amount of the mortgage debt and
a certified copy of the mortgage.
Post bond for the amount approved by the clerk.
Publish notice of the time, place and terms of
the sale once a week for three weeks prior to
the sale, with at least 15 days' notice of the
foreclosure sale.
Mail the foreclosure notice by certified mail,
return receipt requested, to the borrower no
less than 10 and no more than 30 days before
sale.
The notice must also be mailed to the present
owner and holder of any junior mortgage or other
lien that has been recorded who also recorded a
request for notice.
Assent To Decree Foreclosure
Under an assent to decree foreclosure, the
lender must file a lawsuit in court to
foreclose. The court will then enter a decree
ordering the property to be sold and appoint the
trustee to conduct the sale. The trustee must
post a bond and sell the property according to
the terms fixed by the court. The court will
later confirm the sale.
Deficiency
In Maryland a deficiency judgment may be
obtained if the lender makes a motion for it
within three years after the accounting before
the foreclosure is complete.
Redemption
Maryland foreclosure proceedings take place as
an action under equity law. Maryland has not
seen fit to establish a specific time limit on
how long the borrower has to wait to redeem real
estate lost in foreclosure. However, the
Doctrine of Laches prevents this time period
from being unreasonably long.
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