A foreclosure occurs when a property owner cannot make principal or interest payments on their loan, and the lender uses state procedures to sell the property. Foreclosure works differently in different states. In Maryland, most foreclosures are non-judicial, meaning that the foreclosure is mainly out of court, although the court plays a supervisory role in the entire process. When most people are about to face a foreclosure, they find it hard to think about anything other than the loss of their property. It is quite overwhelming, but one needs to act fast for there to be any hope of saving their home. An experienced foreclosure attorney can help the borrower figure out how to proceed with their case, and negotiate with their lender to avoid undesirable results. Here are important details to know about the Foreclosure Process in Maryland.
Notices of Foreclosure
In Maryland, the foreclosing party must give three types of notices to the borrower before a foreclosure sale can take place. These notices include:
* Notice of intent to foreclosure: This must be mailed to the borrower at least 45 days before the foreclosing party files a foreclosure action. The notice should include a loss mitigation application and information on mediation.
* Order to Docket: An order to docket is filed with the court to start the foreclosure process officially.
* Notice of Sale: This is published by the foreclosing party for three weeks in a local newspaper before the actual sale takes place. It also sent by mail to the property owner for 10 to 30 days before the actual sale.
Rights to Reinstate the Property before a Foreclosure Sale
Reinstating occurs when the borrower pays all the defaulted mortgage’s payments to stop a foreclosure. Maryland laws allow the property owner to reinstate the loan at any time, up to one business day before the actual foreclosure sale occurs.
Rights to Redeem the Property after a Foreclosure
In Maryland, there are not statutory post-foreclosure rights to redeem the property. The borrower must wait until the court ratifies the foreclosure sale to repurchase their property.
The foreclosure process in Maryland can long and complicated, especially if the borrower does not have an understanding of the law. That is why it is important to hire a knowledgeable lawyer when faced with a foreclosure.