MARYLAND FORECLOSURE

While a Maryland foreclosure contains many of the same facets as foreclosures in other states, it also contains items unique to Maryland law.  If you are a Maryland homeowner who is facing the possibility of a Maryland foreclosure, ApartmentStores Moving and Relocation has resources of information that will assist you in making the correct decisions when facing foreclosure.
Judicial foreclosure is applicable in Maryland, however under certain conditions a non-judicial foreclosure can also occur.  Maryland foreclosures usually are completed in a shorter time frame than most states, typically 90 days, and contain no right of redemption.
In many states the worst that can happen is that the homeowner loses the home.  In Maryland deficiency judgments are allowed.  These judgments allow the lender to collect in balance left after the property sells at auction.  The lenders have up to three (3) years to file for a deficiency judgment, but it is limited to the balance of the loan in default after the foreclosure sale proceeds have been applied.

Judicial Foreclosure-is employed by the lender if neither a power of sale or an assent to a decree is included in the security instrument.  Once the lender has filed a complaint against the borrower in the county where the home is located the court will determine if a default has actually taken place.
Finding that default has occurred will establish the amount of the debt, including interest and costs and then provide the borrower with a reasonable time frame to satisfy the debt.   Failure by the borrower to do so will most often result in an order by the court to sell the property to satisfy the debt.

Assent To Decree Foreclosure-is included in the security agreement signed by the borrower and lender when the mortgage is established.  This agreement gives the lender the right to sell the property without a court order if specified default occurs.  While a lender is required to file a complaint with the judicial system it is not necessary for a hearing to be held before the foreclosure procedures begin.

Non-Judicial Foreclosure-is used when a power of sale clause exists in a mortgage or deed of trust this  "power of sale" clause pre-authorizes the sale of property to pay off the balance on a loan in the event of default.    Again the lender must file a complaint with the court despite the permission given in the power of sale clause.  However, it is not necessary for a hearing to be held prior to the foreclosure sale.

Foreclosure Guidelines – notice of sale is to be published in a county paper of general circulation for 3 successive weeks.  The first time published must be at least 15 days before date of sale and last not more than one week before sale.  A certified notice must be sent by registered mail to the last known address of borrower not more than 30 days and less than 10 days before date of sale.

The sale will be conducted by the person authorized to make the sale and may take place immediately outside the courthouse entrance, on the property itself or the location advertised in the notice of sale, if different. The terms of the sale vary by process.

No more than 30 days after the sale a complete report of the sale must be filed with the court. The clerk of the court then issues a notice containing a brief description to identify the property and stating that the sale will be ratified unless cause to the contrary is shown within 30 days after the date of the notice. A copy of the notice shall be published at least once a week in each of three successive weeks before the expiration of the 30-day period in one or more newspapers of general circulation in the county in which the report of sale was filed.

The multiple details involved in a Maryland foreclosure makes it essential that the homeowner have all the information available to make a informed decision about their property.  ApartmentStores Moving and Relocation can assist in providing you with this information.