Maryland Laws

Maryland foreclosures may be carried out through either judicial or non-judicial means. If them mortgage contains a Power of Sale clause allowing the lender to pursue foreclosure without the court's supervision, a non-judicial foreclosure may be pursued. In the absence of a Power of Sale clause, or in cases where problems exist with the property title itself, the foreclosure must be judicial. A lender must obtain a court order however in order to pursue even a non-judicial foreclosure.

A lender begins the judicial procedure by filing a suit against the homeowner in court. The lender and homeowner then attend a hearing, and if the court finds a default has occurred, they will grant the homeowner a small window of time in which to provide payment of the default debt. If payment is still not received, the court will order the property sold at public auction in order to retrieve the loan debt.

Before either judicial or non-judicial foreclosure sales, a Notice of Sale must appear for three weeks leading up to the sale date in a local weekly newspaper. The homeowner and any junior lien holders are also entitled to receive the Notice of Sale at least ten days before the sale takes place.

On the day of a judicial Maryland foreclosure sale, a licensed auctioneer will auction off the homeowner's property to the highest bidder on the steps of the county courthouse. The sale is subject to the court's confirmation, and an additional notice must be published concerning the outcome of the sale. If no one objects to the sale, the court will confirm and officially award the property to the winning bidder.

There is no standard redemption period outlined under Maryland foreclosures law, but often the court will establish a redemption period for the owner on an individual case basis.

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