Foreclosure Process and Laws in Maryland

If you default on your home loan payments in Maryland, the servicer (on behalf of the loan owner, called the “lender” in this article) will eventually begin the foreclosure process. The method will most likely be nonjudicial, although the process is more accurately described as "quasi-judicial" because a court has some control, and specific court filings are required. However, the process doesn’t have the same level of court involvement as a typical judicial foreclosure.

Maryland law specifies how this quasi-judicial process works, and both federal and state laws give you rights and protections throughout the foreclosure.

What Are My Foreclosure Rights in Maryland?

Both federal and state laws govern foreclosure procedures in Maryland, and your mortgage documents also give you rights during the process.

Your Mortgage Rights in Maryland

If you get a loan to buy a home in Maryland, you'll likely sign two documents: a promissory note and a deed of trust (which is like a mortgage).

• Promissory note. The promissory note is the document that contains your promise to repay the loan along with the repayment terms.
• Deed of trust. The deed of trust is the document that gives the lender a security interest in the property and will probably include a power of sale clause. If you fail to make the payments, the power of sale provision gives the lender the right to sell the home nonjudicially so it can recoup the money it loaned you.

You also get rights under the deed of trust and promissory note. For example, if you're late making your monthly payment, most promissory notes provide a grace period of ten to fifteen days before you'll incur late charges. To find out the grace period in your situation and the amount of the late fee, review the promissory note or your monthly billing statement.

If you default on payments, most deeds of trust require the lender to send you a breach letter (a preforeclosure notice) before officially starting a foreclosure. This notice tells you that the loan is in default. If you don't cure the default, the lender can accelerate the loan (call it due) and go ahead with the foreclosure.

Your Rights Under Federal Foreclosure Laws

In most cases, federal mortgage servicing laws require the loan servicer to contact you (or attempt to contact you) by phone to discuss foreclosure alternatives, called "loss mitigation" options, no later than 36 days after a missed payment and again within 36 days after each following missed payment. (12 C.F.R. § 1024.39 (2025).)

No more than 45 days after a missed payment, the servicer must let you know in writing about loss mitigation options that could be available and assign personnel to help you. There are a couple of exceptions to these requirements, like if you file for bankruptcy or tell the servicer not to contact you under the Fair Debt Collection Practices Act. (12 C.F.R. § 1024.39) (2025).)

Federal law also generally requires the servicer to wait until the loan is over 120 days delinquent before officially starting a foreclosure. But in a few situations, like if you violate a due-on-sale clause or if the servicer is joining the foreclosure action of a superior or subordinate lienholder, the foreclosure can begin sooner. (12 C.F.R. § 1024.41 (2025).)

Protections If You're in the Military

If you're in the military, the federal Servicemembers Civil Relief Act provides certain legal protections against foreclosure.

Other Foreclosure Rights for Maryland Homeowners

In addition, Maryland foreclosure laws provide homeowners with rights. For example, homeowners in Maryland get the right to reinstate the loan to stop a foreclosure sale.

What Are the Different Types of Foreclosure in Maryland?

If you fail to make your mortgage payments in Maryland, the lender can foreclose on your property through either a judicial or nonjudicial method.

Judicial Foreclosures

A judicial foreclosure begins when the lender files a lawsuit seeking court approval to sell the property. If you fail to respond to the lawsuit with a written answer, the lender automatically wins the case. However, if you contest the lawsuit, the court will examine the evidence and decide the outcome. If the lender prevails, the judge will issue a judgment and order the property to be sold at auction.

Nonjudicial Foreclosures

In a nonjudicial foreclosure, the lender follows out-of-court procedures outlined in state law. However, in a Maryland nonjudicial foreclosure, a court has some minimal involvement in the process.

After completing the required steps, the lender can proceed with selling the property at a foreclosure sale. Nonjudicial foreclosures are typically faster and less expensive than judicial ones, making them the preferred choice for most lenders.

What Are the Steps in the Maryland Foreclosure Process?

Again, most foreclosures in Maryland are nonjudicial (quasi-judicial). Here's how the Maryland nonjudicial foreclosure process works.

Notice Before Foreclosure in Maryland

A notice of intent to foreclose (NOI) must be mailed to you at least 45 days before the lender files an Order to Docket (see below). For owner-occupied residential properties, the notice of intent must include a loss mitigation application and mediation information if the lender offers prefile mediation. (Md. Code, Real Prop. § 7-105.1 (2025).)

The foreclosure action normally can't be filed in court until the later of 90 days after default or 45 days after the NOI. But the lender can ask a court to waive these requirements under some circumstances, like if you never made any payments on the loan or you abandon the home.

Also, remember that federal law generally requires the servicer to wait until the borrower is over 120 days delinquent before filing an Order to Docket with the court.

Foreclosure Procedures in Maryland

The lender officially starts the foreclosure by filing an Order to Docket with the court and serving a copy to you, along with other foreclosure papers, such as a form to request foreclosure mediation if you haven’t already participated in that process. (If you went through mediation before the foreclosure starts, then it isn't available after the foreclosure starts, except as otherwise provided in a prefile mediation agreement.)

You have 25 days to request mediation. You'll then get a list of required documents that you must provide along with notification of the scheduled mediation date, which will be no later than 60 days after your request. You must provide all documents 20 days prior to the mediation. (Md. Code, Real Prop. § 7-105.1 (2025).)

If you participate in mediation but the process isn’t successful, the lender can schedule the foreclosure sale no sooner than 15 days after mediation. (Md. Rule 14-209, Md. Code, Real Prop. § 7-105.1 (2025).) Also, the lender has to:

• publish a notice of sale in a newspaper for three weeks and
• mail notice about the sale to you between ten and 30 days before the sale occurs. (Md. Code, Real Prop. § 7-105.1, Md. Rule 14-210 (2025).)

Foreclosure Auctions in Maryland

The sale is an auction, open to all bidders. At the sale, the lender usually makes a bid on the property using a "credit bid" rather than bidding cash. With a credit bid, the lender gets a credit up to the amount of the borrower’s debt. Sometimes, the lender bids the full amount of the debt; sometimes, it bids less. The highest bidder at the sale becomes the new owner of the property.

You may challenge the sale of your home by filing "exceptions" (problems in how the home was sold) with the court generally within 30 days after the filing of a report of sale. (Md. Rule 14-305(e) (2025).) If you would like to consider filing exceptions, talk to a lawyer.

Challenging a Foreclosure Sale in Maryland

You may file "exceptions" (issues about how the home was sold) with the court, usually within 30 days after the filing of a report of sale. (Md. Rule 14-305(e) (2025).) If you want to consider filing exceptions, talk to a local foreclosure attorney.

Eviction After Foreclosure

If you don’t move out after the court ratifies the sale, the lender (often the high bidder at the foreclosure sale) may apply for a writ of possession from the court.

What Are the Options Available for Borrowers During Foreclosure in Maryland?

You might be able to prevent a foreclosure sale by reinstating the loan, redeeming the property before the sale (or for a short time thereafter), filing for bankruptcy, or working out a loss mitigation option, like a loan modification, short sale, or deed in lieu of foreclosure.

Right to Reinstate Before a Foreclosure Sale in Maryland

“Reinstating” is when a borrower pays the overdue amount, plus fees and costs, to bring the loan current and stop a foreclosure. Maryland law permits you to reinstate the loan at any time up to one business day before the foreclosure sale occurs. (Md. Code, Real Prop. § 7-105.1 (2025).)

What Is the Redemption Period in Maryland Foreclosures?

Some states have a law that gives a foreclosed homeowner time after the foreclosure sale to redeem the property. In Maryland, the borrower has up until the court ratifies the foreclosure sale (see below) to redeem the home.

You also get the right to redeem the property before the sale by paying off the entire loan amount. However, in practice, borrowers rarely redeem prior to a foreclosure sale. Most homeowners facing foreclosure lack the financial means to pay off the entire loan balance, plus additional fees and costs.

Filing for Bankruptcy

If you're facing a foreclosure, filing for bankruptcy might help. Once you file for bankruptcy, something called an "automatic stay" goes into effect. The stay functions as an injunction prohibiting the lender from foreclosing on your home or trying to collect its debt, at least temporarily.

In many cases, filing for Chapter 7 bankruptcy can delay the foreclosure by a matter of months and eliminate other debts. But if you're behind in mortgage payments when you file, you probably won't be able to keep your home. To stay in your house, you must be current on payments and be able to protect your equity with an exemption. However, you won't owe anything after foreclosure because Chapter 7 erases mortgage debt. If you want to save your home and you're behind in payments, filing for Chapter 13 bankruptcy can provide a way to catch up on delinquent mortgage amounts. To find out about the options available, speak with a local bankruptcy attorney.

Deficiency Judgment Following a Foreclosure Sale in Maryland

Sometimes, a foreclosure sale doesn’t bring in enough money to pay off the full amount owed on the loan. The difference between the sale price and the total debt is called a “deficiency balance.” Many states allow the lender to get a personal judgment, called a “deficiency judgment,” for this amount against the borrower.

In Maryland, after the sale is complete, the court has to ratify it. “Ratification” is the process of confirming the purchase, the total amount owing, and applying the proceeds to the debt. After the court ratifies the sale, a court-appointed auditor determines how to distribute the sale proceeds and files a report. The lender may file a motion for a deficiency judgment within three years after ratification of the auditor’s report. (Md. Rule 14-216(b), Md. Code, Real Prop. § 7-105.17 (2025).)

Resources for Maryland Homeowners Facing Foreclosure

Foreclosure laws are complicated. Servicers and lenders sometimes make errors or forget steps. If you think your servicer or lender failed to complete a required step, made a mistake, or violated state or federal foreclosure laws, you might have a defense that could force a restart to the foreclosure, or you might have leverage to work out an alternative.

Consider talking to a local foreclosure attorney or legal aid office immediately to learn about your rights. A lawyer can also tell you about different ways to avoid foreclosure. If you can't afford a lawyer, Maryland Legal Aid’s Foreclosure Legal Assistance Project (FLAP) provides free legal representation to some homeowners facing foreclosure. If they're unable to represent you in the foreclosure, FLAP can provide advice and referrals to other resources.

Also, a HUD-approved housing counselor can provide helpful information (at no cost) about various alternatives to foreclosure. The Maryland HOPE Hotline 877-462-7555 can also connect you with a housing counselor.