Legal Question in Real Estate Law in Maryland

Re: Foreclosures - Notices of Default

A notice of default and action for foreclosure will be sent before any action is taken by the holder of the mortgage. Judicial action is needed for the mortgagee to pass title to the property through foreclosure. Equity of redemption will apply where the debtor makes good on the provisions of a legally enforceable mortgage note (i.e., debtor pays arrearage).

Notification must also be sent to others who may hold an interest in the property. This includes filing a notice in the county in which the property is located so as to ensure that the property taxes are paid.

Ultimately a notation will be made upon your credit history at some point in the process prior to foreclosure due to non-payment. This may create a burden for you should you decide to retain the property.

Bankruptcy and coveyance of the property through a deed in lieu of foreclosure are alternatives. You will not be able to retain the property through discharge of your bankruptcy. These alternatives are something you should discuss with an attorney and they may reduce overall costs.

An action of foreclosure on a lien will be commenced by the creditor (i.e., mortgagee). Costs of foreclosure can be assessed upon a judgment. Bonding provisions typically apply to a foreclosure sale. Publication in a local newspaper will be made for the sale of the property. Only the terms of the mortgage and the statute need be met in a foreclosure under a power of sale.

If you are asking how long it takes for you to be taken off the propery upon a foreclosure sale, this depends on ratification of the sale in court. Maryland law provides that a sale under a foreclosure decree does not pass title until the sale is ratified by the court.

As you see this is a process that involves many alternatives, you should contact an attorney to discuss your particular situation.

Many mortgage companies may work with you. The extent that they reach agreement varies based on a multitude of factors.

This is a general response to an internet inquiry and does not form the basis of an attorney-client relationship. Contact an attorney for advice specific to your situation.

This response does not address land installment contracts. Secondary mortgages, lines of equity and other secured transactions are not addressed. Your outcome will depend upon the interests held and other considerations.