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 was 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 received a hiring bonus and would like to stay in my home. Is it 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 property after the foreclosure sale during a post-sale “redemption period,” but Maryland isn't 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, called “redeeming” the home.
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.
In Maryland, most foreclosures are nonjudicial. But as part of the process, a court must ratify (confirm) the foreclosure sale. You have up until ratification to redeem the home. After that, you won’t get another opportunity to get your house back by redeeming it. Ratification typically takes place 30 to 45 days after the sale, though this varies from county to county.
To redeem, you must pay the full amount of the unpaid loan, plus all other lawful charges such as interest, attorneys' fees, and costs. Check with a Maryland attorney to find out the exact procedures for redeeming your home.
Other options might be available to you that would allow you to keep the home—but you must act before the sale. For example, you could potentially:
The earlier you work with your servicer in the foreclosure process to come up with an alternative to foreclosure, the better. If you haven't already done so, call the loan servicer immediately to find out about different options for keeping your home.
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. Statutes change, so checking them is always a good idea. How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some of the reasons to consider consulting an attorney if you’re facing a foreclosure.