I was fired from my job a few months ago and fell behind on my mortgage payments. My house then went into foreclosure. Recently, I got hired as a consultant for a long-term project, which pays really well. Unfortunately, I don’t start that work until a few weeks from now and the foreclosure sale is coming up. I did receive a hiring bonus though and would like to stay in my home. Would it be possible for me to get the house back if the foreclosure goes through? I live in Maryland.
No, you won’t be able to get the home back following the foreclosure. Some states allow foreclosed homeowners to repurchase their home after the foreclosure through what is called the “statutory right of redemption,” but Maryland is not one of them.
You do, however, have up until the court ratifies the sale to pay off the full amount of the unpaid loan and keep the house. This is known as “redeeming” the home.
When You Can Redeem Your Home in a Maryland Foreclosure
While you can’t redeem your home after the foreclosure sale in Maryland, you do get what is called an "equitable right of redemption" before the sale is finalized. (Learn more general information about the equitable right of redemption.)
In Maryland, most foreclosures are nonjudicial, but with court supervision. After the foreclosure sale, a court must ratify (confirm) the sale to finalize it. You have up until ratification to redeem the home. After that you won’t get another opportunity to get your house back. (Ratification typically takes place 30 to 45 days after the sale, though this varies from county to county.)
How Much It Will Cost to Save Your Home
In order to redeem, you must pay the full amount of the unpaid loan, plus all other lawful charges such as interest, attorney's fees, and costs. To find out the exact procedures for redeeming your home, check with a Maryland attorney or call the foreclosing lender.
Take Action Early to Save Your Home
In addition, there are several other options that may be available to you that would allow you to keep the home, but you must act before the sale. For example, you could:
- pay off the past-due amounts to reinstate (catch up on) the loan, or
- obtain a mortgage modification, forbearance agreement, or repayment plan.
The earlier you work with your lender in the foreclosure process to come up with an alternative to foreclosure, the better. If you have not already contacted your lender, call it immediately to find out about different options for keeping your home.
Finding Maryland’s Foreclosure Laws
To find the statutes that discuss foreclosures in Maryland, go to §§7-101 through 7-111 of the Code of Maryland. Also look at Maryland Rules 14-201 through 14-218.