Stop Foreclosure in Maryland


How to Stop Foreclosure in Maryland

Before the process of foreclosure takes place, you would first encounter pre-foreclosure if you happen to be unable to pay your dues on time. Of course you wouldn’t want this to happen, right?

When you have errors or lapses when it comes to your payment, you would be faced with pre-foreclosure. This process serves as a warning and usually takes just a while before you will be given a foreclosure notice. Upon receiving a pre-foreclosure notice, it would be best for you to take note of it and act on it immediately to avoid further delays.

The good thing is, there are also many things you can take on in order to avoid foreclosure. The first thing you can do is to catch up on your dues and pay up on your mortgages. Remember that the length of this process differs depending on which state you are in. But whatever the time frame may be, the most important thing is to never receive this type of process at all.

If on the other hand you are the other end of the spectrum and is in search of a home to buy, it would be good for you to look out for pre-forclosed homes that have good value. This is because you can buy a home at a much cheaper price and chances are, the quality is not at all that bad.

There are many opportunities when it comes to pre-closed homes and all you have to do is search where you can find them whether online or ask your friends you have previously tried it already.

In the end, when buying a home, consider your needs and your budget as well so that you wouldn’t put your money into waste when you can no longer pay for your dream house in the future.

Synopsis of Maryland Foreclosure Laws

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes, with restrictions

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 90 days

Right of Redemption: No

Deficiency Judgments Allowed: Yes

In Maryland, lenders may foreclose on a mortgage or deed of trust in default using either the judicial, assent to decree, or non-judicial foreclosure process.

Judicial Foreclosure

In cases where the security instrument contains neither a power of sale nor an assent to a decree, a lender must file a complaint against the borrower and obtain a decree of sale from a court having jurisdiction in the county where the property is located before foreclosure proceedings can begin. The court will then determine whether a default has occurred.

If the court finds that a default has occurred it shall: 1) fix the amount of the debt, interest, and costs then due; and 2) provide a reasonable time within which payment may be made. The court may order that if payment is not made within the time fixed in the order, the property must be sold to satisfy the debt.

Assent To Decree Foreclosure

Assent to a decree foreclosure is used when a provision in the security document declares an assent to the entry of an order for the sale of the property upon a specified default. Lenders who use the assent to decree foreclosure must file a complaint to foreclose. However, it is not necessary for a hearing to be held prior to the foreclosure sale.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee.

Despite the permission given in the power of sale clause, lenders in Maryland must still file an order to docket before foreclosure proceedings can begin. However, it is not necessary for a hearing to be held prior to the foreclosure sale.

Foreclosure Guidelines

Unless otherwise stated in the original loan document or ordered by the court, the following guidelines must be adhered to in any foreclosure proceedings:

  1. A notice of sale must be published in a newspaper of general circulation in the county where the property resides at least once a week for three (3) successive weeks, with the first publication to be not less than fifteen (15) days prior to sale and the last publication to be not more than one week prior to sale. The notice of sale must also be sent by certified and by registered mail, not more than thirty (30) days and not less than ten (10) days before the date of the sale, to the borrower at their last known address.
  2. The sale must be conducted by the person authorized to make the sale (i.e. trustee, sheriff) 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.
  3. If the sale is postponed, notice of the new date of sale shall be published in the manner the original notice of sale was given.
  4. Within thirty (30) days after the sale, the person authorized to make the sale must file a complete report of the sale with the court. The clerk of the court will then issue 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.
  5. Lenders have a period of 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.

Where to go to for Foreclosure Help

Baltimore Field Office

City Crescent Building
10 S. Howard Street, Fifth Floor
Baltimore, MD 21201-2505

Phone: (410) 962-2520
Fax: (410) 209-6670
TTY: (410) 209-6681

Jurisdiction: State of Maryland (Except as noted below under Washington, DC)

James Kelly
Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

District of Columbia Field Office

820 First Street, NE, Suite 300
Washington D.C., 20002

Phone: (202) 275-9200
Fax: (202) 275-6381
TDY: (202) 275-6388

Jurisdiction: Washington, DC; City of Alexandria, VA; Fairfax County, VA; Arlington County, VA; Prince William County, VA; Loudoun County, VA; Montgomery County, MD and Prince George’s County, MD.

John E. Hall
Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Stop Foreclosure Early

Family First Mortgage Group LLC
3525 H Ellicott Mills Dr.
Ellicott City, MD

Baltimore HUD Homes
(443) 866-8699
1953 Laurel Oak Dr
Baltimore, MD

Sentinel Home Mortgage
2200 Baltimore Blvd
Catonsville, MD

Real Estate Place, Inc
1 Equitable Bldg
Baltimore, MD

Bank of America Home Loans
7550 Teague Rd
Hanover, MD

Happy Mortgage
4405 Leeds Ave.
Baltimore, MD

BASK Properties
240 South Potomac St
Hagerstown, MD

SunTrust Mortgage
1966 Greenspring Dr
Timonium, MD

Mortgage Network Solutions
408 Main Street, Suite 3
Reisterstown, MD

Proficio Mortgage Ventures
11219 Lockwood Dr.
Silver Spring, MD