How to avoid foreclosure in Maryland

How foreclosure works in Maryland, step by step

1. Missed payment and the Notice of Intent to Foreclose

   After a missed payment the servicer mails a Notice of Intent to Foreclose by certified and first-class mail. It states the amount needed to catch up and lists free help. The case cannot be filed until 45 days after this notice is sent and 90 days after the default, and most loans are also covered by the federal 120-day wait.

   Md. Code, Real Prop. § 7-105.1(b), (c); 12 C.F.R. § 1024.41(f)

2. The Order to Docket is filed and served

   The lender's attorney files an Order to Docket in circuit court and serves you with a copy. It comes with a preliminary or final loss mitigation affidavit. If you get a preliminary one, the servicer has not finished reviewing you for alternatives.

   Md. Code, Real Prop. § 7-105.1(e), (h)

3. Final loss mitigation affidavit and your mediation request

   The final loss mitigation affidavit comes with a Request for Foreclosure Mediation form. If you live in the home, you have 25 days to file the request with the circuit court and pay a $50 fee, which the court can reduce or waive.

   Md. Code, Real Prop. § 7-105.1(j)

4. Foreclosure mediation

   The Office of Administrative Hearings holds the mediation within 60 days after the court sends over your request. You must attend, and you may bring a housing counselor or a lawyer. The lender's representative must have authority to settle.

   Md. Code, Real Prop. § 7-105.1(k), (l)

5. The foreclosure sale

   The sale is advertised once a week for three weeks, and you must be mailed the time, place and terms of the sale by certified and first-class mail 10 to 30 days before it. You can cure the default and reinstate the loan up to one business day before the sale. The auction is held by the person authorized to make the sale, usually a trustee or attorney.

   Md. Code, Real Prop. §§ 7-105.1(n), (o), (p), 7-105.4(c)

6. Exceptions and ratification

   After the sale you have 30 days from the court's notice of the report of sale to file exceptions. If none are filed, or they are overruled, the court ratifies the sale. Title does not pass to the buyer until then.

   Md. Rule 14-305

7. Audit and eviction

   A court auditor reports whether the sale left a surplus or a shortfall. The buyer must file a motion and get a court judgment awarding possession before the sheriff can evict you. The state regulator says eviction can come as soon as 15 days after ratification.

   Md. Rules 14-102, 14-305

Maryland foreclosure deadlines to know

These are the periods written into the law. Your own dates are on the notices you received. If a notice and this page disagree, trust the notice and ask a counselor or lawyer.

Your rights as a homeowner in Maryland

Other Maryland protections

• Notice of Intent to Foreclose with a 45-day wait

  The lender must send a Notice of Intent to Foreclose at least 45 days before filing. It must give the amount needed to reinstate, the name and phone number of someone who can modify the loan, and a recommendation to get housing counseling.

  Md. Code, Real Prop. § 7-105.1(c)

• No filing until 90 days after default

  A foreclosure on a home generally cannot be filed until 90 days after the default and 45 days after the notice of intent, whichever is later.

  Md. Code, Real Prop. § 7-105.1(b)

• Pause for furloughed government workers

  A court must pause a foreclosure case for a federal, state or local government employee who is furloughed without pay because of a government shutdown. The pause generally cannot run more than 30 days past the end of the shutdown.

  Md. Code, Real Prop. § 7-105.1(b-1)

• Loss mitigation affidavits

  The lender must file an affidavit showing whether it has finished reviewing you for alternatives. The clock for mediation and for the sale runs from the final affidavit.

  Md. Code, Real Prop. § 7-105.1(e), (n)

• Three years to sue over violations

  A claim that the lender failed to follow these foreclosure rules must be brought within three years after the order ratifying the sale.

  Md. Code, Real Prop. § 7-105.1(q)

Maryland mortgage assistance programs

If the home is sold for more than you owe

After ratification, a court-appointed auditor files a report showing how the sale money is divided. If there is a surplus, the auditor recommends to the court who should receive it. You are entitled to a copy of the auditor's report, so keep your address current with the court and watch your case file.

Md. Rule 14-305

Ways to avoid foreclosure

Most of your options come from federal rules and from whoever owns or insures your loan, so they work the same way in Maryland as anywhere else. What changes by state is how much time you have to use them.

• Repayment plan
• Forbearance
• Payment deferral or partial claim
• Loan modification
• Reinstatement
• Short sale
• Deed in lieu of foreclosure
• Chapter 13 bankruptcy