Maryland Foreclosure Laws and Procedures

Before the foreclosure crisis, both federal and state regulations on mortgage servicers and foreclosure procedures were fairly minimal and often favored lenders in the foreclosure process. Today, however, there are much stricter federal and state laws in place that govern loan servicing and foreclosure procedures. Many of these laws are designed to protect borrowers. For example, servicers are generally required to offer loss mitigation options, document each step of the foreclosure process, and strictly adhere to all legal requirements.

In Maryland, most individuals who finance the purchase of a home sign a promissory note and a deed of trust, which functions similarly to a mortgage. These documents provide homeowners with certain contractual rights.

If you're a Maryland homeowner who has fallen behind in mortgage payments, don't be caught off guard. Take the time to understand each stage of the Maryland foreclosure process, from your first missed payment all the way to a potential foreclosure sale.

Key Legal Protections for Maryland Homeowners Facing Foreclosure

In a Maryland foreclosure, you'll most likely get the right to:

• preforeclosure notices, such as a notice of intent to foreclose
• apply for loss mitigation
• receive certain foreclosure notices
• participate in foreclosure mediation
• get current on the loan and stop the foreclosure sale
• receive special protections if you're in the military
• pay off the loan to prevent a sale
• redeem the property for a short time after a foreclosure sale
• file for bankruptcy, and
• get any excess money after a foreclosure sale.

Once you understand the Maryland foreclosure process and your rights, you can make the most of your situation and, hopefully, work out a way to save your home or at least get through the process with as little anxiety as possible.

What Is Preforeclosure?

The period after you fall behind in payments, but before a foreclosure officially starts, is generally called the "preforeclosure" stage. (Sometimes, people refer to the period before a foreclosure sale happens as "preforeclosure," too.)

During this time, the servicer can charge you various fees, like late charges and inspection fees, and, in most cases, must inform you about ways to avoid foreclosure, and send you a breach letter.

When Can a Foreclosure Start in Maryland?

Federal law requires the servicer to hold off on beginning a foreclosure until the borrower is more than 120 days past due on payments, subject to a few exceptions. (12 C.F.R. § 1024.41 (2025).) This 120-day period gives homeowners time to submit a loss mitigation application to the servicer.

What Types of Foreclosure Are Available in Maryland?

If you default on your mortgage payments in Maryland, the lender may foreclose using a judicial or nonjudicial method.

How Judicial Foreclosures Work in Maryland

A judicial foreclosure begins when the lender files a lawsuit asking a court for an order allowing a foreclosure sale. The lender will automatically win the case if you don't respond with a written answer.

But if you choose to defend the foreclosure lawsuit, the court will review the evidence and determine the winner. If the lender wins, the judge will enter a judgment and order your home sold at auction.

How Nonjudicial Foreclosures Work in Maryland

If the lender chooses a nonjudicial foreclosure, it must complete the out-of-court procedures described in the state statutes. However, Maryland nonjudicial foreclosures have a minimal amount of court involvement.

After completing the required steps, the lender can sell the home at a foreclosure sale. When available, most lenders opt to use the nonjudicial process because it's quicker and cheaper than litigating the matter in court.

Step-by-Step Maryland Foreclosure Timeline and Procedures

Most residential foreclosures in Maryland are considered nonjudicial, even though a court has some involvement Here's how the process works.

Notice of Intent to Foreclose

The lender usually must send a notice of intent to foreclose at least 45 days before starting the foreclosure. For owner-occupied residential properties, the notice of intent must include a loss mitigation application and mediation information if the lender offers prefile mediation. You get 25 days to complete the request for mediation form and file it with the Circuit Court where the foreclosure action has been filed. (Md. Code, Real Prop. § 7-105.1 (2025).)

After you file the mediation request with the Circuit Court, the court refers the matter to the Maryland Office of Administrative Hearings (OAH). The OAH will schedule the mediation session, which will be within 60 days after it receives the request from the court, and notify you of the time, date, and place for the mediation session. (Md. Code, Real Prop. § 7-105.1 (2025).)

The notice of intent to foreclose will also provide the name and contact information for the current owner of the loan and servicer. (Md. Code, Real Prop. § 7-105.1 (2025).) This information can be very helpful, especially if a company different than the original lender currently owns or services the loan.

Order to Docket

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 gone through that process. (If you attended mediation before the foreclosure starts, you can't go through mediation again after the foreclosure starts, except as otherwise provided in a prefile mediation agreement.)

You get 25 days to complete the request for mediation form. The OAH will send a list of required documents that you must provide along with notification of the scheduled mediation date. All documents must be provided 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).)

The lender usually can't file the Order to Docket in court until the later of 90 days after default or 45 days after the notice of intent to foreclose. 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. (Md. Code, Real Prop. § 7-105.1 (2025).) 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.

In addition, the lender has to publish a notice of sale in a newspaper for three weeks and mail notice about the sale to you between 10 and 30 days before the sale occurs. (Md. Code, Real Prop. § 7-105.1, Md. Rule 14-210 (2025).)

How Do Foreclosure Sales Work in Maryland?

The sale is an auction, which is open to the public. At the sale, the lender usually makes a credit bid. The lender can bid up to the total amount owed, including fees and costs, or it may bid less. In some states, including Maryland, when the lender is the high bidder at the sale but bids less than the total debt, it can get a deficiency judgment against the borrower.

If the lender is the highest bidder, the property becomes "real estate owned" (REO). But if a bidder, say a third party, is the highest bidder and offers more than you owe, and the sale results in excess proceeds (that is, money over and above what's needed to pay off all the liens on your property), you're entitled to that surplus money.

Once the sale is complete, the court must ratify it. "Ratification" is the process of confirming the purchase, the total amount owing, and applying the proceeds to the debt.

Filing Exceptions to the Sale

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

What to Expect After a Foreclosure Sale in Maryland

Again, after a Maryland foreclosure, the court must ratify the sale. If you don't leave the property when the sale is ratified, the lender (often the high bidder at the foreclosure sale) may apply to the court for a writ of possession.

Also, the lender might seek a deficiency judgment (see below) against you.

Options to Avoid Foreclosure in Maryland

A few potential ways to stop a foreclosure and keep your home include reinstating the loan, redeeming the property, or filing for bankruptcy.

Or you might be able to work out a short sale or deed in lieu of foreclosure and avoid a foreclosure. But you'll have to give up your home with either of these options.

Reinstating the Loan

In Maryland, you get the right to reinstate the loan by bringing the account current, which stops the foreclosure from going forward, up to one business day before the foreclosure sale. (Md. Code, Real Prop. § 7-105.1 (2025).)

Does Maryland Have a Foreclosure Redemption Period?

One way to stop a foreclosure is by "redeeming" the property. To redeem, you must pay off the full loan amount before the foreclosure sale.

Some states also provide foreclosed borrowers a redemption period after the foreclosure sale, during which they can buy back the home. In Maryland, the borrower has until the court ratifies the foreclosure sale to redeem the home. 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.

Filing for Bankruptcy

If a foreclosure sale is scheduled to occur in the next day or so, the best way to stop the sale immediately is by filing for bankruptcy because of the automatic stay. The stay functions as an injunction that prohibits the lender from foreclosing on your home or otherwise 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. But if you're behind in payments, you'll likely lose your home. If you want to delay foreclosure by a few months but are willing to let your home go, filing for Chapter 7 might be an option. Or, if you want to save your home, filing for Chapter 13 bankruptcy can provide a way for you to catch up on payments and, perhaps, eliminate other debts. People who can afford a monthly Chapter 13 payment can catch up on late payments and keep their homes. To find out about the options available to you, speak with a local bankruptcy attorney.

Foreclosure Protections and Military Servicemembers

The federal Servicemembers Civil Relief Act provides legal protections to military personnel who are facing foreclosure.

Maryland state law extends the protections provided under the federal Servicemembers Civil Relief Act to members of the National Guard ordered to state military duty for a period of 14 consecutive days or longer. (Md. Code [Pub. Safety] § 13-704 (2025).)

Are Deficiency Judgments Allowed in Maryland?

The borrower's total mortgage debt sometimes exceeds the sale price in a foreclosure. The difference between the total debt and the sale price is called a "deficiency." For example, say the total debt owed is $600,000, but the home sells for $550,000 at the foreclosure sale. The deficiency is $50,000.

In some states, the lender can seek a personal judgment against the borrower to recover the deficiency. Generally, once the lender gets a deficiency judgment, the lender may collect this amount ($50,000 in the example above) from the borrower.

Maryland law allows deficiency judgments.

Deficiency Judgment Laws in Maryland

In Maryland, after the court ratifies the sale, a court-appointed auditor determines the distribution of the sale proceeds and files a report. If a deficiency exists, the lender may file a motion for a deficiency judgment within three years after a court ratifies the auditor's report. (Md. Rule 14-216(b), Md. Code, Real Prop. § 7-105.17 (2025).)

State law used to say that a creditor could pursue a deficiency judgment within 12 years. But as of July 1, 2014, this time limit was reduced to three years.

What Is the Statute of Limitation on a Deficiency Judgment in Maryland?

While Maryland shortened its statute of limitations for filing a deficiency action from 12 to three years, it didn't modify the statutory period to collect the judgment, which remains at 12 years. The lender may extend this period for another 12 years before the period ends. (Maryland Rule 2-625 (2025).)

Will My Lender Come After Me for a Deficiency Judgment?

Even if your lender has the right under state law to go after you for a deficiency judgment, it might decide not to do so, especially if you don't have many assets to satisfy the judgment.

Can You Avoid a Deficiency Judgment in Maryland?

Even if your lender gets a deficiency judgment, you can probably eliminate your liability for a deficiency judgment, like many other dischargeable debts, in a Chapter 7 or Chapter 13 bankruptcy. Or you might be able to raise a defense to the deficiency, such as the lender didn't file its motion for a deficiency judgment on time.

More Foreclosure Resources

For more information on federal mortgage servicing laws and foreclosure relief options, go to the Consumer Financial Protection Bureau (CFPB) website. For information specific to Maryland foreclosures, the Maryland Department of Housing and Community Development provides foreclosure information and a useful foreclosure timeline.

If you have questions about Maryland's foreclosure process or want to learn about potential defenses to a foreclosure and possibly fight the foreclosure in court, consider talking to a foreclosure attorney. If you can't afford to pay a lawyer, Maryland Legal Aid's Foreclosure Legal Assistance Project (FLAP) provides free legal representation to financially eligible individuals 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 loss mitigation information and housing counseling (at no cost). The Maryland HOPE Hotline 877-462-7555 can connect you with a housing counselor.