How Foreclosure Works in Maryland

Foreclosure goes through the circuit court in every case. A mortgage or deed of trust may contain a power of sale or the borrower's "assent to a decree," which lets a court-supervised sale proceed without a full lawsuit on the debt; the case starts with an "order to docket" (or a complaint to foreclose) filed in circuit court, and the sale takes effect only after the court finally ratifies it.

For homes of up to four units, the lender must send a written Notice of Intent to Foreclose at least 45 days before filing, stating the amount needed to cure and reinstate and including loss mitigation information (and a prefile mediation offer, if the lender offers one). The court papers must be served on the borrower, and a separate notice addressed to "all occupants" must be sent at the same time. Within 7 days of filing, the person selling the property must notify the Commissioner of Financial Regulation. Before the sale, notice of the time, place and terms must be published in a county newspaper once a week for 3 successive weeks (first publication at least 15 days before the sale, last no more than one week before), written notice must be mailed to the record owner by certified and first-class mail 10 to 30 days before the sale, and the county or city must be notified at least 15 days before the sale.

For homes of up to four units, a foreclosure case may not be filed until the later of 90 days after the default or 45 days after the Notice of Intent to Foreclose is sent (the court can allow an earlier filing in limited cases, such as fraud or no payments ever made). For an owner-occupied home, the sale may not occur until at least 45 days after service of the court papers with a final loss mitigation affidavit (or 30 days after that affidavit is mailed), or, if postfile mediation is requested, at least 15 days after the mediation is held or the mediation report is filed. For a home that is not owner-occupied, the sale may not occur until at least 45 days after service.

Yes. The borrower of residential property (up to four units) has the right to cure the default and reinstate the loan by paying all past-due payments, penalties and fees at any time up to 1 business day before the foreclosure sale. On request, the lender must provide the reinstatement amount and payment instructions within a reasonable time.