Understanding the Maryland foreclosure timeline is vital for you to know exactly what is happening to your home. While sometimes the process may seem like a byzantine maze of confusion, the reality is that foreclosures follow an orderly process developed in combination by the state and federal government.
Below we walk you through each stage of the foreclosure process, so you have a keen understanding of what is expected of you, and how the bank acts at every stage of a foreclosure.
Maryland Foreclosure Timeline Keywords
Before we run through the foreclosure process, we need to explain a few key terms that you will hear throughout the timeline.
Default: A default is when a borrower does not pay their mortgage, or violates other terms and conditions in the mortgage agreement with the lender.
Power of Sale Clause: A clause the bank puts in their mortgage documents stating they have the right to seize the property if a borrower defaults on their mortgage.
Judicial Vs. Non-Judicial: Maryland is a Non-Judicial state. This means the bank does not have to go through the courts for a foreclosure as long as they have the power of sales clause.
Redemption: This refers to the borrower’s ability to reclaim their home after auction. Maryland, unlike neighboring states like Virginia, allows borrowers to redeem their home for 30 days after the sale of the property for the past due balance.
Maryland Foreclosure Timeline
Foreclosures can be broken down into four specific phases:
Stage 1: Pre-Foreclosure
Stage 2: Foreclosure filed in court
Stage 3: Court approves foreclosure, and sale of house occurs
Stage 4: 30 day redemption period
4 Stages of Foreclosure in Maryland
Stage 1: Pre-Foreclosure occurs when a borrower misses payments on a mortgage. The bank will generally call the borrower, and do everything in their power to handle the matter internally before going through the foreclosure process. The pre-foreclosure lasts approximately 120-180 days. During this time, a borrower will receive multiple calls from the lender, along with mailed notices of pending foreclosure.
Stage 2: After 120-180 days, the bank will hand the matter over to an attorney to file the necessary paperwork needed to foreclose on a property. Since Maryland is a non-judicial state, the mortgagor needs to file the necessary paperwork. The borrower will receive an Order of the Docket listing the foreclosure steps taken by the bank. Additionally, the bank will place a notice of sale two weeks before the auction in a county newspaper with a wide general circulation. This notice will be sent to the borrower, notifying them of the auction.
Stage 3: After the paperwork has been filed, the bank has a limited period of 45 days to notify the borrower, and then will proceed with the foreclosure auction. At the auction, the highest bidder for the property will win the property. If no one bids on the property at the auction, then the property reverts back to the bank.
Stage 4: The borrower now enters a 30-day right of redemption period when they can reclaim their home. During this time, a borrower can still pay the bank back the remaining balance they owed. When they do, they resume payments on their loan. This is rare, since a borrower needs to have the entire back balance paid at once. This often can run in the thousands and tens of thousands of dollars.
Now that you have a better idea of Maryland’s Foreclosure Timeline, let us know if you have any further questions about the matter –call Express Homebuyers at (877) 804-5252 today.