The Maryland foreclosure process begins when the owner of a house stops making mortgage payments to their lender. In Maryland this status of non-payment is referred to as being “in default.” Every state handles foreclosures differently and in Maryland we use a quasi-judicial process. This means that your lender does not need to go to court in order to foreclose on your home, but the courts will have to ratify (confirm) the sale.
If you are in foreclosure DO NOT WAIT. Call us immediately at (410) 779-4622. The earlier you get help, the more options there are available to remedy your situation.
The Maryland foreclosure processes is complicated and can last months. We’ve provided a step-by-step guide to help you understand the process and know what to expect. Any questions can be answered by giving us a call at (410) 779-4622. You can also read about the foreclosure process on the Maryland State Law Library’s self-help website.
After 45 days in default: You are notified that you are in default
The lender will send the owner a letter called a Notice of Intent to Foreclose. This letter notifies the owner that he or she is in default and is accompanied by a loss mitigation application. This application allows you to describe why you are behind on payments. If the lender can determine a valid hardship then they may offer alternative loan terms that you, the homeowner, can afford given the new situation.
Notice: If you are an active member of the armed forces you have additional options to stop foreclosure. Click here to learn more about the Servicemembers Civil Relief Act.
After 90 days in default: The lender will formally file for foreclosure with the courts.
If no agreement has been made on alternative loan terms, then the lender will file an Order to Docket with the courts. This recording is a declaration by the lender that they are beginning the judicial foreclosure process. With this recording the lender will state the amount of debt they are owed. This will include principal, interest, late charges, attorney’s fees, and any other charges responsible by you, the borrower, per the original mortgage documents.
The lender will then file a final loss mitigation affidavit and send you, the borrower, a copy in the mail along with a mediation request form. At this point, if you are the borrower, you have 25 days to send the mediation request form package into the Circuit Court by mail.
Within 5 days of receiving your mediation request form: The Circuit Court will forward your request to Maryland’s Office of Administrative Hearings
Within 60 days from receiving the mediation request form: The Office of Administrative Hearings will schedule a mediation meeting
Once scheduled, you will receive a scheduling notice in the mail. This notice will provide you instructions for documents you must provide the Office of Administrative Hearings no later than 20 days before the scheduled date of mediation.
At mediation you will meet with a neutral third party mediator from Maryland Office of Administrative Hearings and a representative from your mortgage company. This meeting will give you an opportunity to come to an agreement with the mortgage company on a loan modification or other relief option.
15 days after mediation: The lender will schedule the foreclosure sale of your property
If no agreement was reached during mediation then the lender will be given the ability to schedule the foreclosure sale of your property. If you have not received a final determination from your lender on the completed loss mitigation application then you may be able to file for a foreclosure stay.
The sale of your property
In order to sell your property the lender must advertise the sale no less than 15 days prior to the date of the sale. These advertisements must include the date, time and location of the sale along with a description of your property. These advertisements will be published in the legal notices section of your local newspaper for three consecutive weeks. You will also receive a notice by certified and first class mail of the time, place, and terms of the pending foreclosure sale no later than 10 day prior to the scheduled sale date.
Within 30 days following the sale of your property: The Court Clerk will then issue a notice of sale
Once a sale has occurred the lender will file a report of sale with the Circuit Court. This notifies court that a sale has taken place. The Court Clerk will then issue a notice that the sale will become ratified within 30 days. During this time you have the opportunity to file exceptions to sale.
30 day from the notice of sale: The Circuit Court will ratify the foreclosure sale of property
Upon ratified the court will issue an order granting possession of your property to the purchaser. At this point the purchaser will begin the eviction process. You will be served with an eviction notice that will state that you must leave the property and that all possessions remaining in the property at specified date will become property of the purchaser. A sheriff will arrive on the specified date to ensure that the house has been vacated.
Yes, the Maryland foreclosure process can be complicated and intimidating. At Dependable Homebuyers we specialize in helping individual homeowners facing foreclosure. Every situation is unique and requires special attention and consideration. We take pride in providing customized solutions that align with your needs while providing peace of mind that you’re not in this situation alone.