Foreclosure in Maryland: A Simple Step-by-Step Guide for Homeowners

Learn how foreclosure works in Maryland. This guide explains the steps, timeline, and options homeowners have to avoid losing their home.

What Is Foreclosure?

Foreclosure happens when a homeowner cannot make their mortgage payments, and the lender takes legal action to sell the home. In Maryland, foreclosure is done through the Deed of Trust system, which means a trustee (a neutral third party) can sell the property if payments stop.

Step 1: Default – Payments Are Missed

  • A loan is in default as soon as one payment is missed.
  • Usually, the lender sends a Notice of Intent to Foreclose about 45 days after missed payments.
  • This notice often includes a loss mitigation application, which lets homeowners ask for help through payment plans or loan modifications.

Step 2: Foreclosure Is Filed in Court

If the homeowner doesn’t catch up, the lender’s lawyer files an Order to Docket in the Circuit Court. This starts the foreclosure case.

  • The lender must wait at least 90 days after default and 45 days after sending the Notice of Intent before filing.
  • Along with this filing, the lender also sends a loss mitigation affidavit (a statement about whether alternatives to foreclosure were considered).

Step 3: Mediation (Optional but Helpful)

Homeowners can request mediation within 25 days of receiving foreclosure papers.

  • Mediation is a meeting with the lender, a neutral mediator, and sometimes attorneys.
  • The goal is to find a solution—like a loan modification or repayment plan—so foreclosure can be avoided.
  • If no agreement is reached, the lender can schedule a foreclosure sale.

Step 4: Foreclosure Sale

If no resolution is found:

  • The lender schedules a foreclosure auction where the home is sold to the highest bidder.
  • The homeowner has the right to reinstate the loan (catch up on all missed payments and fees) up to one business day before the sale.
  • After the sale, the court must ratify (approve) it. Homeowners can file objections within 30 days if something was done improperly.

Step 5: Eviction

If the home is sold and the buyer takes ownership:

  • The buyer files for possession in court.
  • The court issues an eviction order.
  • The sheriff carries out the eviction, and the homeowner must leave.

Options to Avoid Foreclosure in Maryland

Even after falling behind, homeowners may still have options:

  • Loan modification – Adjusting payment terms.
  • Repayment plan – Catching up gradually.
  • Short sale – Selling for less than what’s owed (with lender approval).
  • Deed in lieu – Giving the house back to the lender.
  • Bankruptcy – Sometimes delays foreclosure and allows restructuring of debt.

? FAQs

1. How long does foreclosure take in Maryland?
It varies, but often several months to a year.

2. Can I stop foreclosure once it starts?
Yes—by reinstating your loan, applying for modification, or working out another agreement.

3. What is foreclosure mediation?
It’s a meeting between you, the lender, and a mediator to try to save your home.

4. Do I lose everything if my house is foreclosed?
Not always—sometimes there’s a surplus after the sale that can be returned to the homeowner.

5. Who carries out the eviction?
The sheriff executes the writ of possession after the court grants it.

? Conclusion

Foreclosure in Maryland is a step-by-step process that takes time. Homeowners receive notices and have chances to work with the lender, request mediation, or even catch up on payments before the house is sold.

The most important thing is not to ignore notices. Acting early gives the best chance to keep the home or find another solution.