Maryland Foreclosure

Maryland foreclosure does not differ greatly from most other US states, but there are some aspects of the Maryland foreclosure laws throughout both buying and foreclosing process that you need to be aware of.

If you have previously bought a foreclosure in another state, it is erroneous to assume that the process will also be the same in Maryland. For that reason you must become educated about the local laws and regulations concerning foreclosures in the state of Maryland.

One point to note about Maryland foreclosures is that a redemption period does not exist. What this essentially means is that the owner who foreclosed on the home is not able to regain ownership of their former home during the time after the property is sold. This act is allowed in some states but not in Maryland where a former owner is unable to win back the property through a redemption period.

However what is allowed in Maryland is a deficiency judgement which is when the bank is able to try to obtain extra money in addition to what is raised from the property sale.

This is to cover costs before the property selling price and the money owed on the mortgage however this judgement is rarely enforced as lenders realize most people do not have the cash to pay it though they will proceed to seek this money if they have reason to believe that you can afford to pay it. That includes if they know you have any other assets and investments that equal or exceed the amount of money they are seeking. In reality though, you would probably have sold off those other assets in an attempt to use the funds to keep your home.

Foreclosure in Maryland is a 90 day process and a bank must file an order to docket prior to commencing foreclosure proceedings. However there does not have to be a hearing before the sale.

The Maryland foreclosure process is easy to understand once you have done your research carefully. Naturally you will want to get professional advice if you are unsure of any aspect of buying foreclosures in Maryland. If you live in Maryland and your home is going through foreclosure or is in pre-foreclosure it is imperative that you are aware of your options so that you can have the best possible chance of keeping your home and avoiding any negative records on your credit rating.