Best Foreclosure Lawyers in Maryland

About Foreclosure Law in Maryland, United States

Foreclosure is a legal process where a lender seeks to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the property used as collateral. In Maryland, foreclosure is primarily a judicial process, meaning it typically requires court approval, although non-judicial foreclosures are possible in some cases. The laws surrounding foreclosure in Maryland are designed to protect both homeowners and lenders, providing specific rights and remedies to each party during the process.

Why You May Need a Lawyer

Facing foreclosure can be overwhelming, especially because the legal system has many technical requirements and deadlines. You may need a lawyer if you:

• Are at risk of losing your home due to missed mortgage payments
• Have received a Notice of Intent to Foreclose or other legal documents from your lender
• Believe there was an error or unfair practice by your mortgage servicer
• Are interested in negotiating a loan modification, repayment plan, or short sale
• Feel you have a valid defense to foreclosure, such as improper service, fraud, or violations of foreclosure laws
• Need representation in mediation or court proceedings
• Want to understand your rights and responsibilities more clearly

A knowledgeable foreclosure attorney can help you navigate the process, preserve your rights, and explore all available options to resolve your situation.

Local Laws Overview

In Maryland, foreclosure laws have unique features designed to both protect homeowners and ensure lenders can recover outstanding debts. Key aspects include:

• Judicial versus Non-Judicial Foreclosure: Most residential foreclosures in Maryland use a non-judicial process known as "order to docket," which allows lenders to foreclose outside of a full court trial. However, court involvement is still necessary.
• Notice Requirements: Lenders must send a Notice of Intent to Foreclose at least 45 days before filing foreclosure, providing details about the default and advising of solutions.
• Mediation: Maryland law offers homeowners the right to request mediation after receiving foreclosure paperwork, giving them an opportunity to negotiate alternatives to foreclosure.
• Timeframes: There are strict timelines and procedures for each stage of the foreclosure process, including how and when notices must be served and when the final sale can occur.
• Deficiency Judgments: Maryland allows lenders to seek a deficiency judgment against a borrower if the foreclosure sale does not cover the full loan balance, but there are restrictions and time limits.
• Redemption Rights: Homeowners do not generally have a right to redeem (buy back) the property after the foreclosure sale is final.

Frequently Asked Questions

What starts the foreclosure process in Maryland?

The foreclosure process begins when the homeowner misses several mortgage payments and the lender sends a Notice of Intent to Foreclose. If the default is not cured, the lender files an order to docket with the court.

How much notice is required before a foreclosure can proceed?

At least 45 days before filing foreclosure paperwork, the lender must send a Notice of Intent to Foreclose with information about the default, options to avoid foreclosure, and counseling resources.

Can I stop a foreclosure once it has started?

Yes, there are options to stop or delay foreclosure, such as reinstating the loan by paying overdue amounts, applying for a loan modification, securing forbearance, or negotiating other solutions. Mediation is also available to explore these alternatives.

What are my rights to mediation during foreclosure?

If you are an owner-occupant, you can request foreclosure mediation within 25 days after being served with a copy of the order to docket. Mediation can help negotiate solutions with your lender.

How long does the foreclosure process usually take in Maryland?

The timeline varies, but from the initial notice to final sale, foreclosure proceedings can take several months. The process may be extended if mediation or court challenges occur.

What is the difference between judicial and non-judicial foreclosure in Maryland?

In Maryland, most foreclosures follow a non-judicial process called "order to docket," which involves court oversight but does not require a full trial unless the homeowner contests the action.

Will foreclosure affect my credit?

Yes, foreclosure will have a significant negative impact on your credit score, which may affect your ability to obtain loans or credit in the future.

Can a lender come after me for any remaining balance after foreclosure?

If the proceeds from the foreclosure sale do not fully repay the mortgage debt, lenders can seek a deficiency judgment for the remaining balance, subject to Maryland's rules and limitations.

Do I have any right to redeem my property after foreclosure?

Unlike some states, Maryland does not generally allow homeowners to redeem (repurchase) the property after the foreclosure sale has been finalized by the court.

What should I do if I receive a foreclosure notice?

Do not ignore the notice. Contact your lender to discuss solutions, gather all related documents, consider reaching out to a HUD-approved housing counselor, and strongly consider consulting a foreclosure attorney to protect your rights.

Additional Resources

Here are some resources and organizations that offer information and assistance for foreclosure matters in Maryland:

• Maryland Office of the Commissioner of Financial Regulation
• Maryland Legal Aid
• Maryland HOPE Initiative (Housing Counseling)
• Local county bar associations
• U.S. Department of Housing and Urban Development (HUD) approved housing counselors
• Pro bono or low-cost legal services through the Maryland Volunteer Lawyers Service

Next Steps

If you are facing foreclosure or have concerns about your mortgage circumstances, consider taking the following steps:

• Review any notices or legal documents you’ve received from your lender
• Gather and organize documents related to your mortgage and correspondence with your lender
• Contact your lender early to discuss available options for resolving the default
• Consult a qualified Maryland foreclosure attorney for legal advice tailored to your situation
• Explore mediation and housing counseling resources for additional help
• Act decisively, as waiting can limit your options and increase the risk of losing your property

Remember, prompt action and knowledgeable support can make a crucial difference in protecting your home and your rights during a foreclosure process in Maryland.