The Maryland Foreclosure process is conducted in the courts. This is called a Judicial Foreclosure. The typical foreclosure process in Maryland lasts 46 days.
To begin the foreclosure process, a lender must file a complaint called a “Order of Docket” against the borrower and obtain a Decree of Sale from the court which has jurisdiction based on property location. The court then determines whether a default has occurred. If the court finds a default, it fixs the amount of the debt, interest, and costs due and presents a time for payment to be made; typically 30 to 60 days. The court usually orders that if payment is not made within a certain time, the property must be sold to satisfy the debt.
Before a sale date is set by the court, the lender is not required to notify the borrower of the pending foreclosure proceedings. This differs from most states where some type of notification must be sent to the borrower, usually served in person, before any sale date is scheduled.
In a Maryland foreclosure, a borrower will most likely get the right to:
- Pre-foreclosure notices, such as a Notice of Intent to Foreclose, (NOI)
- apply for loss mitigation.
- receive certain foreclosure notices.
- participate in foreclosure mediation.
- get current on the loan and stop the foreclosure sale.
- receive special protections if borrower is in the military.
- pay off the loan to prevent a sale.
- redeem the property.
- file for bankruptcy.
- get any excess money after a foreclosure sale.
Notice of Sale & Auction
A Notice of Sale must be published in a local newspaper for three consecutive weeks.
The court appointed trustee must send a notice of sale to the borrower and any other lien holders at least 10 days before the date of the sale. Typically this is done through regular mail, not certified or service.
A licensed auctioneer conducts the sale, which typically takes place at the county courthouse.
The highest bidder wins the auction. After the winning bidder has been established, a notice that the sale has occurred must be published in a local newspaper. This is to advise any interested parties that any objections must be made to the court within 30 days. If no objections are filed, the sale is confirmed by the court and the property ownership is transferred to the winning bidder.
There is no redemption period for the borrower. However, there is also no law against it, so the courts can and sometimes do set a redemption period on a case-by-case basis.