Maryland's Foreclosure Law Made Simple
When a lender reclaims possession of a property due to the inability of the borrower to make agreed-upon payments, this is referred to as a foreclosure. In the state of Maryland, the foreclosure process typically takes between 90 and 100 days to complete. This time frame may be extended if the borrower chooses to contest the foreclosure proceedings.
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Judicial Foreclosure
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The state of Maryland provides three options for initiating a foreclosure. A judicial foreclosure requires that the lender file a lawsuit against the borrower. The purpose of the suit is to get a court order, called a decree of sale. In this order, the court specifies the total amount of debt, including interest, and sets a date by which the payment must be made to prevent the property from being sold.
Assent to Decree Foreclosure
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The assent to decree procedure requires that a clause, referred to as assent to decree, be inserted into the mortgage contract. This specifies that the property may be sold in the event that terms specified in the clause are not met. Lenders who choose this method are still required to file a complaint, but they do not have to wait for a hearing before proceeding with the foreclosure.
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Non-Judicial Foreclosure
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The non-judicial foreclosure is similar to an assent to decree, in that it is based on a clause in the contract, called a power of sale. This clause allows the lender to foreclose on the home, once the terms of the contract have been breached, by filing an order to docket with the court. Once the documentation is filed, the foreclosure must be completed by the lender, or a designated representative, referred to as the trustee.
Procedures
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Foreclosure terms may be laid out in the mortgage contract. In the event this does not occur, then Maryland requires certain procedures to be followed. The local newspaper must publish a notice of sale in a local newspaper at least once per week for three successive weeks. The first instance must occur at least 15 days before the sale takes place, and the last one no more than one week before the sale. This notice must also be sent to the borrower at least 10 days, but not more than 30 days, before the sale.
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