Maryland Foreclosure Laws

In Maryland the foreclosure proceedings are carried out in the judiciary. The process of foreclosures typically takes about 46 days.

Period of Pre-foreclosure

In the State of Maryland, the foreclosure proceedings are initiated when a lender files a legal complaint against the loan defaulter. The lender starts the foreclosure proceedings so that he/she can obtain a ruling of sale from the court. Only a court that has authority to pass a ruling in the area where the property is sited can pass this ruling. The next step is for the court to find out if the default has really occurred. If the judiciary determines a default, it can instruct the borrower to make a payment that is the sum total of the loan amount, the interest, and any additional costs that are due to the lender within a stipulated period of time. If the borrower is unable to make this payment, the judiciary can order auction or sale of the property so that the lender can recover his debt.

The lender doesn't have to notify the defaulter or owner of the scheduled foreclosure process until the date of sale if fixed by the judiciary. This rule is different from that in many other states, where a notification has to be sent to the defaulter before any such sale date is fixed.

Auction Notice

The foreclosure laws in the state of Maryland require that the trustee publish the sale notice in at least one local paper for a period of three successful weeks. The borrower or any other involved party needs to be sent the sale notice a minimum of 10 days prior to the sale date by the trustee. This is very important.

The sale of the foreclosed property is conducted by a certified auctioneer. The auction takes place at the doors of the law court. The highest bidder is the winner. Once the highest bidder is selected, a notice informing all interested parties that the sale has been conducted is printed in a local daily. This notice is published so that the borrower or other parties have a period of 30 days to raise objections, if they have any. The sale of the foreclosed property is confirmed by the judiciary in case no objections are charged. The ownership of the property is also transferred to the winning bidder.

Though Maryland foreclosure law has not defined a period of redemption for the defaulter, but if necessary, the court of law can set a period of redemption. This is however, based on the requirements of the case in question.

If you need more information about Maryland foreclosure laws, you should contact a foreclosure lawyer, or contact us so we can recommend one for you.

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