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Maryland |
Attorney General's Office 200 St. Paul Place Baltimore, MD 21202-2021 Ph: (410) 576-6300 Fax: (410) 576-6404 |
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Summary:
Judicial foreclosure in
If the loan document contains an assent to a decree of foreclosure this means that the borrower gives his assent to entry of a decree of sale in the event of default. The lender must also file a complaint against the borrower to foreclose, but a hearing is not required in order to proceed with the sale. If neither is present in the loan document, the lender must sue to obtain a decree of sale. The court will then rule as to whether a default has occurred. If the court so finds, it shall fix the amount then due and provide a reasonable period of time for the borrower to cure the default. Non-judicial foreclosure is used when the loan document does contain a power of sale. However, the lender must still file an order to the court’s docket before proceedings can begin. Again, no hearing is required. The notice of sale must be published weekly for three successive weeks prior to the sale, and served upon the borrower by registered mail not more than 30 days or less than 15 days prior to the sale. Within 30 days after the sale, the person conducting the sale must file a report of the sale with the clerk of the court. The clerk will issue a notice that the sale will be ratified unless cause to invalidate is shown within 30 days. The notice must also be published weekly for three consecutive weeks during the 30-day period. Any suit for deficiency must be filed within three years. In the event of postponement, the new sale date must be published in the same manner as the original notice of sale.
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