Maryland foreclosure

The Maryland foreclosure process can be either judicial or non-judicial, depending on whether or not there is a power of sale clause in the mortgage or deed of trust.

The non-judicial foreclosure process will be used when there is a power of sale clause in the security instrument (mortgage or deed of trust). The clause gives the lender or the trustee the permission to sell the property. Before the lender can begin foreclosure proceedings, it must file an order at the courthouse. No hearing will be held.

In other cases, the lender may have inserted an "Assent to Decree" provision in the security instrument. If you default by breaking any of the conditions, this provision will allow the lender to enter an order for the sale of the property by filing a complaint at the courthouse. No hearing will be required in this case either.

If there is no power of sale clause or "Assent to Decree" provision in the security instrument, then the judicial foreclosure process has to be used. The lender must first file a complaint saying that you the borrower are in default. If the court finds that you are in default, it will let you know how much you need to pay in order to correct the default and give you a reasonable amount of time to pay it. If you don't make payment within that time period, it will allow the house to be sold at auction.

In any foreclosure proceedings the sale must be published in a newspaper of general circulation in the county. It must be published once a week for 3 consecutive weeks. The first publication must occur at least 15 days before the sale and the last publication cannot be more than a week before the sale. In addition, 10 to 30 days before the sale, you must be sent a copy of the notice at your last known address.

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