ANNE ARUNDEL COUNTY 7½ Church Cir. Annapolis, MD 21404 Phone: 410-222-1425 Courthouse Map

BALTIMORE CITY Courthouse Door, Calvert St. Entrance, 100 N. Calvert St. Baltimore, MD 21202 Phone: 410-333-3760 Courthouse Map

BALTIMORE COUNTY Courthouse Steps, 401 Bosley Ave. Towson, MD 21204 Phone: 410-887-3483 Courthouse Map

CALVERT COUNTY 175 Main St. Prince Frederick, MD 20678 Phone: 410-535-1660 Courthouse Map

CAROLINE COUNTY 109 Market St. Denton, MD 21629 Phone: 410-479-1811  Courthouse Map 

CARROLL COUNTY 55 N. Court St. Westminster, MD 21157 Phone: 410-386-2642  Courthouse Map

CECIL COUNTY 129 E. Main St. Elkton, MD 21912 Phone: 410-996-5375  Courthouse Map

CHARLES COUNTY 200 Charles St. La Plata, MD 20646 Phone: 301-932-3235  Courthouse Map

DORCHESTER COUNTY 206 High St. Cambridge, MD 21613 Phone: 410-228-0480 Courthouse Map

FREDERICK COUNTY Courthouse Door, 100 W. Patrick St. Frederick, MD 21701 Phone: 301-694-1961 Courthouse Map

GARRETT COUNTY 203 S. 4th St. Oakland, MD 21550 Phone: 301-334-1938 Courthouse Map

HARFORD COUNTY 20 W. Courtland St. Bel Air, MD 21014 Phone: 410-638-3474  Courthouse Map

HOWARD COUNTY 8360 Court Ave. Ellicott City, MD 21043 Phone: 410-313-3837 Courthouse Map

KENT COUNTY 103 N. Cross St. Chestertown, MD 21620 Phone: 410-778-7460  Courthouse Map

MONTGOMERY COUNTY 50 Maryland Ave. Rockville, MD 20850 Phone: 240-777-9477  Courthouse Map

PRINCE GEORGE'S COUNTY 14735 Main St. Upper Marlboro, MD 20772 Phone: 301-952-3352  Courthouse Map

QUEEN ANNE'S COUNTY 100 Courthouse Sq. Centreville, MD 21617 Phone: 410-758-1773  Courthouse Map

ST. MARY'S COUNTY 41605 Court House Dr. Leonardtown, MD 20650 Phone: 301-475-4554  Courthouse Map

SOMERSET COUNTY 30512 Prince William St. Princess Anne, MD 21853 Phone: 410-651-1555  Courthouse Map

TALBOT COUNTY 11 N. Washington St. Easton, MD 21601 Phone: 410-822-2611 Courthouse Map

WASHINGTON COUNTY 95 W. Washington St. Hagerstown, MD 21740 Phone: 301-739-2255  Courthouse Map

WICOMICO COUNTY 101 N. Division St. Salisbury, MD 21801 Phone: 410-543-6551 Courthouse Map

WORCESTER COUNTY 1 W. Market St. Snow Hill, MD 21863 Phone: 410-632-1221  Courthouse Map

It is the new owner's responsibility to get the property vacated.  Local county laws should be consulted to determine the correct way to go about this process.  Also, the new owner should check with the local county agency that regulates landlord-tenant relations.

Foreclosure cancellations are updated evey morning - at approximately 8 AM -  for the major auctioneers in the State of Maryland,  i.e. Alex Cooper Auctioneers, Express Auctions, Mid-Atlantic Auctioneers, Harvey West Auctioneers and Tidewater Auctions.  These auctioneers handle approximately 90% to 95% of foreclosures throughout the State of Maryland.  Paranthetically, it is always important to contact the auctioneer before leaving for an auction, as foreclosure auctions can cancel up until sale time.

Maryland Foreclosure Law Information

-  Judicial Foreclosure Available: Yes

-  Non-Judicial Foreclosure Available: Yes, with restrictions

-  Primary Security Instruments: Deed of Trust, Mortgage

-  Timeline: Typically 90 days

-  Right of Redemption: No

-  Deficiency Judgments Allowed: Yes

In Maryland, lenders may foreclose on a mortgage or deed of trust in default using either the judicial, assent to decree, or non-judicial foreclosure process.

Judicial Foreclosure

In cases where the security instrument contains neither a power of sale nor an assent to a decree, a lender must file a complaint against the borrower and obtain a decree of sale from a court having jurisdiction in the county where the property is located before foreclosure proceedings can begin. The court will then determine whether a default has occurred.

If the court finds that a default has occurred it shall: 1) fix the amount of the debt, interest, and costs then due; and 2) provide a reasonable time within which payment may be made. The court may order that if payment is not made within the time fixed in the order, the property must be sold to satisfy the debt.

Assent To Decree Foreclosure

Assent to a decree foreclosure is used when a provision in the security document declares an assent to the entry of an order for the sale of the property upon a specified default. Lenders who use the assent to decree foreclosure must file a complaint to foreclose. However, it is not necessary for a hearing to be held prior to the foreclosure sale.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee.

Despite the permission given in the power of sale clause, lenders in Maryland must still file an order to docket before foreclosure proceedings can begin. However, it is not necessary for a hearing to be held prior to the foreclosure sale.

Foreclosure Guidelines

Unless otherwise stated in the original loan document or ordered by the court, the following guidelines must be adhered to in any foreclosure proceedings:

1. A notice of sale must be published in a newspaper of general circulation in the county where the property resides at least once a week for three (3) successive weeks, with the first publication to be not less than fifteen (15) days prior to sale and the last publication to be not more than one week prior to sale. The notice of sale must also be sent by certified and by registered mail, not more than thirty (30) days and not less than ten (10) days before the date of the sale, to the borrower at their last known address.
    
2. The sale must be conducted by the person authorized to make the sale (i.e. trustee, sheriff) and may take place immediately outside the courthouse entrance, on the property itself or the location advertised in the notice of sale, if different. The terms of the sale vary by process.
    
3. If the sale is postponed, notice of the new date of sale shall be published in the manner the original notice of sale was given.
    
4. Within thirty (30) days after the sale, the person authorized to make the sale must file a complete report of the sale with the court. The clerk of the court will then issue a notice containing a brief description to identify the property and stating that the sale will be ratified unless cause to the contrary is shown within 30 days after the date of the notice. A copy of the notice shall be published at least once a week in each of three successive weeks before the expiration of the 30-day period in one or more newspapers of general circulation in the county in which the report of sale was filed.
    
5. Lenders have a period of three (3) years to file for a deficiency judgment, but it is limited to the balance of the loan in default after the foreclosure sale proceeds have been applied.

(source: http://www.foreclosurelaw.org/Maryland_Foreclosure_Law.htm )

Foreclosure Glossary

Accelerate
An option given to lenders through an "acceleration" clause in the mortgage or deed of trust requiring the borrower to pay the entire balance of the loan all at once if their loan is in default.
 

Affidavit
A sworn statement in writing usually given while under oath or in the presence of a notary.

Appraisal
The process in which a licensed or authorized person gives an estimate of property value.

Appreciation
The difference between the increased value of the property and the original value.

Assignment
The transfer of property to be held in trust or to be used for the benefit of the creditors (lenders).

Bid
The offered amount for a property for sale at auction.

Certificate of Sale
A document given to the winning bidder at a foreclosure sale stating their rights to the property once the borrowers redemption period has expired.

Clear Title
A title that is not burdened with defects.

Credit Bid
A bid on behalf of the lender at a foreclosure sale. The bid amount must be less than or equal to the balance of the loan in default.

Decree
A judicial decision.

Deed
A signed document that transfers ownership of property from one party to another.

Deed-in-lieu of Foreclosure
An instance where borrowers voluntarily convey their rights in a property to the lender.

Deed of Trust
A three party security instrument conveying the legal title to real property as security for the repayment of a loan. The three parties included in a deed of trust are the borrower, lender and trustee.

Default
A mortgage or deed of trust is said to be in default when the borrower fails to make the payments as agreed to in the original promissory note.

Deficiency Judgment
A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.

Equitable Title
The present right to possession with the right to acquire legal title once a preceding condition has been met.

Fair Market Value
The price a property would sell for on the open market.

Foreclosure
The forced sale of property pledged as security for a debt that is in default.

Free & Clear
Ownership of property free of all indebtedness.

Judicial Foreclosure
A foreclosure that is processed by a court action.

Lien
A charge upon real or personal property for the satisfaction of a debt.

Legal Description
A formal description of real property sufficient to locate it by reference to government surveys or approved recorded maps.

Lender
A person who lends money for temporary use on condition of repayment with interest (i.e., the bank, mortgage company, etc.).

Lis Pendens
A recorded notice of pending lawsuit.

Mortgage
A written pledge of property that is used as security for the repayment of a loan.

Non-judicial Foreclosure
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of their default.

Notary
A public officer licensed by the state to attest to and certify the validity of signatures of others. A notary is often referred to as a notary public.

Notice of Sale
A notice giving specific information about the loan in default and the proceedings about to take place. This notice must be recorded with the county where property is located and advertised as stated in the security document or as dictated by state law.

Personal Property
Property other than real property consisting of things temporary or movable.

Posting
To publish, announce or advertise by physically attaching a notice to an object.

Postponement
Postponement means to put off to a later time. In the case of a foreclosure sale, this is generally done by announcement at the original sale or by posting notices establishing the new date and time the foreclosure sale will take place.

Right of Redemption
A borrower's right to reacquire property lost due to a foreclosure.

Request for Notice
A recorded document requiring a trustee send a copy of a Notice of Default or Notice of Sale concerning a specific deed of trust in foreclosure to the person who filed the document.

Subject To
The purchase of a property with an existing lien against the title without assuming any personal liability for the liens payment.

Title
The instrument that is evidence of a person's right in real property (i.e., a deed).

Trustee
A neutral party who advertises the foreclosure property for sale and conducts the auction to sell said property to the highest bidder.

Trustee Sale
An auction of real property conducted by a trustee. Also known as a Sheriff's Sale.

Upset Bid
A recorded bid placed after a foreclosure sale has ended that is higher than the highest bid received at the actual foreclosure sale.

Writ
An order or mandatory process in writing issued in the name of a court or judicial officer commanding the person to whom it is directed to perform or refrain from performing a specified act.

(Source: http://www.foreclosurelaw.org/glossary.htm)

INFORMATION ON THE NEW FORECLOSURE LAW (Senate Bill 761)

On May 26, 2005 Governor Robert Ehrlich signed Senate Bill 761 into law. The new foreclosure law defines three types of investors and prescribes rules to which these investors must conform. 

The Foreclosure Consultant

The Foreclosure is a real estate investor who markets to those homeowners facing foreclosure.  The consultant can help the homeowners facing foreclosure.  The consultant can help the homeowner in dealing with lenders, line up potential buyers for the residence in foreclosure, arrange for bail-out loans, and line up other individuals who may be able to assist the homeowner in foreclosure. 

The Foreclosure Consultant must sign a Foreclosure Consulting Agreement with the homeowner which must completely disclose the services to be rendered, the fees associated with those services, any compensation paid by a third party, and in rescindable by the homeowner at any time.  The Foreclosure Consultant Agreement must be notarized.  The Foreclosure Consultant is prohibited from purchasing the home.  The Foreclosure Consultant is also prohibited from collecting any fees until the services to be performed have been performed in full.

The Foreclosure Purchaser

The Foreclosure Purchaser is an investor who agrees to purchase a residence in foreclosure with a promise to reconveyance back to the original homeowner.  In most cases a Foreclosure Consultant must be in place in order for a Foreclosure Purchaser to purchase the residence.  If the purchase does not include a promise of reconveyance, the end buyer is not considered a Foreclosure Purchaser, and therefore is not subject to this law. 

The Foreclosure Purchaser is required to sign a Notification of Transfer of Deed or Title with the homeowner.  The Notification of Transfer or Title must disclose all of the terms of the sale and subsequent reconveyance.  This includes the terms of any lease, option, or reconveyance agreements.  Make sure you pay special attention to any provision that defines the actions that result from a default on the part of the homeowner, and any provision for removal of the homeowner.  The Notification of Transfer of Deed or Title must be notarized. 

Note - The Foreclosure Purchaser is prohibited by law from entering into any agreement that includes leasing or reconveying back to the homeowner if the homeowner has a debt-to-income ratio exceeding 60%.

Note 2: The foreclosure purchaser must make a detailed accounting of the basis for the amount of a payment made to the homeowner of a property resold within 18 months after entering into an agreement and must ensure that the homeowner receives at least 82% of the net proceeds of any resale of the property.

The Foreclosure Surplus Purchaser

The Foreclosure Surplus Purchaser is an investor who agrees to purchase the surplus that occurs when a home is sold at foreclosure sale and the buyer pays more for the home than is required to pay off all existing liens. The  Foreclosure Surplus Purchaser agrees to advance funds to the homeowner in return for the homeowner assigning all or a portion of the surplus to the investor.  The Foreclosure Surplus Purchasing  Agreement with the homeowner that discloses all of the terms of the transaction.  This agreement must be notarized. 

Rights of Rescission

·         Foreclosure Consulting Agreement: The homeowner can rescind this agreement at any time without penalty. 

·         Notice of Transfer of Deed or Title:  The homeowner can rescind this agreement with three days following the signing of the deed. 

·         Foreclosure Surplus Purchasing Agreement: The homeowner can rescind this agreement within ten days following the final audit of the foreclosure sale.

(Source: http://www.marylandforeclosureconsulting.com/ )

Bill Analysis (Senate Bill 761)

Bill Summary: In addition to any other right under law to cancel or rescind a contract, the bill grants a homeowner the right to: (1) rescind a foreclosure consulting contract at any time; and (2) rescind a foreclosure reconveyance at any time before midnight on the third business day after any conveyance or transfer of legal or equitable title to a residence in foreclosure. Rescission occurs when the homeowner gives written notice to the foreclosure consultant as prescribed under the bill. The notice is effective if it indicates the intention of the homeowner to rescind the foreclosure consulting contract or foreclosure reconveyance.

The bill specifies the required contents of a foreclosure consulting contract, including information about the services to be provided and the foreclosure consultant’s compensation and a notice about the right to rescind the contract. The bill requires that the foreclosure consultant provide the homeowner a signed and dated copy of the contract, along with the notice, upon execution. The bill limits the amount a foreclosure consultant may charge the homeowner to 8% a year of the amount of any loan that the consultant makes to the homeowner. The consultant may not receive any consideration from a third party in connection with foreclosure consulting services provided to a homeowner unless the consideration is first fully disclosed to the homeowner.

A foreclosure consultant may not demand payment until after having performed all the services promised under the contract. The consultant may not accept a power of attorney from the homeowner for any purpose except to inspect documents.

If a foreclosure reconveyance is included in a foreclosure consulting contract or arranged after the execution of the contract, the foreclosure purchaser must provide the homeowner with a document entitled “Notice of Transfer of Deed or Title.” The document must contain the entire agreement between the parties, describe the terms of any foreclosure reconveyance, and other specified information required under the bill.

The foreclosure purchaser must also provide the homeowner with a document entitled “Notice of Right to Cancel Transfer of Deed or Title.” The document must include specified information, including the right to rescind within three days after transfer, and must be provided to the homeowner immediately on execution of any document that includes a foreclosure reconveyance. If the homeowner rescinds the agreement, the homeowner must repay any money spent on the homeowner’s behalf by the purchaser within 60 days, along with 8% annual interest.

A foreclosure purchaser may not enter into, or attempt to enter into, a foreclosure reconveyance with a homeowner unless the purchaser verifies and can demonstrate that the homeowner has or will have a reasonable ability to pay for the subsequent reconveyance of the property back to the homeowner on completion of the terms of the conveyance. Until the homeowner’s right to rescind or cancel the transaction has expired, the purchaser may not: (1) record any document signed by the homeowner; or (2) transfer or encumber or purport to transfer or encumber any interest in the residence in foreclosure to a third party. The bill establishes a rebuttable presumption that: (1) a homeowner has a reasonable ability to pay for a subsequent reconveyance if the homeowner’s payments for primary housing expenses and regular principal and interest on other personal debt, on a monthly basis, are not more than 60% of the homeowner’s monthly gross income; and (2) that the purchaser has not verified reasonable payment ability if the purchaser has not obtained documents other than a statement by the homeowner about the homeowner’s assets, liabilities, and income.

The foreclosure purchaser must make a detailed accounting of the basis for the amount of a payment made to the homeowner of a property resold within 18 months after entering into an agreement and must ensure that the homeowner receives at least 82% of the net proceeds of any resale of the property.

A foreclosure surplus acquisition must be in the form of a written contract. The contract must contain specified information about the transaction, including the total consideration to be given to the foreclosure surplus purchaser and a description of any services the purchaser will perform for the homeowner. The contract must be accompanied by a notice of homeowner’s right to rescind the contract within 10 days after the auditor states the account of the foreclosure sale. A homeowner who rescinds a contract must repay any consideration received, along with 8% annual interest.

A person may not induce or attempt to induce a homeowner to waive the homeowner’s rights under the bill. Any such waiver is void and unenforceable. The Attorney General may seek an injunction to prohibit a person who has violated or is violating the bill from continuing to do so. A court may enter any order or judgment necessary to: (1) prevent the use of any prohibited practice; (2) restore any money or property acquired from a person by means of any prohibited practice; or (3) appoint a receiver in case of a willful violation of the bill. In an action brought by the Attorney General, the Attorney General is entitled to recover the costs of the action for the State’s use.

A homeowner may also bring an action for damages incurred as the result of a violation of the bill, including reasonable attorney’s fees. If the court finds that the defendant willfully or knowingly violated the bill, the court may award three times the amount of actual damages.

Violation of the bill is a misdemeanor, with maximum penalties of three years’ imprisonment and/or a $10,000 fine.

The Consumer Protection Division is required to maintain a list of nonprofit organizations that: (1) solely offer counseling or advice to homeowners in foreclosure or loan default; and (2) are not related to and do not contract for services with for-profit lenders or foreclosure purchasers. The division must provide the name and telephone number of an organization on the list to a homeowner who contacts the division.

Under the bill, a “foreclosure consultant” is a person who makes a solicitation, representation, or offer to a homeowner at risk of foreclosure to perform, or who performs, one of a number of specified services that the person represents will help the homeowner. A “foreclosure purchaser” is a person who acquires title or possession of a deed or other document to a residence in foreclosure as a result of a foreclosure reconveyance. A “foreclosure surplus purchaser” is a person who acts as the acquirer by assignment, purchase, grant, or conveyance of the surplus resulting from a foreclosure sale.

The bill does not apply to (1) a Maryland attorney while performing an activity related to the attorney’s regular practice of law in the State; (2) a person who holds or is owed an obligation secured by a lien on a residence in foreclosure while providing services in connection with the obligation or lien; (3) banks, trust companies, savings and loan associations, credit unions, or insurance companies; (4) judgment creditors of a homeowner; (5) title insurers; (6) title insurance producers; (7) a licensed mortgage broker or mortgage lender acting while under the license; (8) a licensed real estate broker, associate real estate broker, or real estate salesperson while acting within the scope of the license; or (9) a nonprofit organization that solely offers counseling or advice to homeowners in foreclosure or loan default, if the organization is not directly or indirectly related to and does not contract for services with for-profit lenders or foreclosure purchasers.

The bill also establishes that the entry of an order for resale on default by a purchaser at a foreclosure sale does not affect the prior ratification of the sale and does not restore any right or remedy that was extinguished by the prior sale and extinguishes all interest of the defaulting purchaser.

Current Law: In addition to any other required notice, the person authorized to make a sale in an action to foreclose a mortgage or deed of trust must give written notice of the proposed sale to the record owner of the property to be sold.

Foreclosure consulting services, foreclosure purchasers, and foreclosure surplus purchasers are not specifically regulated by statute.

(Source: http://www.theforeclosuresinfo.com/foreclosure-law/maryland.html )