1. Real Manor and Other Housing
  2. Foreclosure
  3. Foreclosure Steps and Timeline

This article describes the timeline of a foreclosure example from beginning to end.

  1. Default = ane twenty-four hour period by mortgage due date
  2. Lender sends Discover of Intent to Forbid (usually sent 45 days after default) and a loss mitigation application
  3. Lender's police force firm files Order to Docket.
    1. Can file any time afterward 45 days from when the Observe of Intent to Forbid is sent (or 90 days in default)
  4. Next step – depends on whether Lender files a preliminary loss mitigation affirmationor terminal loss mitigation affidavit
    If preliminary –
    1. Lender must wait 28 days after filing the Social club to Docket before filing the final loss mitigation affirmation
    2. Lender must file the concluding loss mitigation affidavit at least 30 days before sale
  5. When Lender sends the final loss mitigation affidavit, they must also transport a arbitration request form
  6. Homeowner must file mediation request and send a payment of $fifty, within 25 days of:
    1. The Order to Docket, if terminal loss mitigation affidavit served at same fourth dimension
    2. Receipt of final loss mitigation affidavit filed after the Gild to Docket is filed
    3. In either case – 25 days from terminal loss mitigation affidavit
  7. If homeowner does not request mediation, the sale tin occur:
    1. 45 days later on the homeowner has been serviced with the Club to Docket if it has a final loss mitigation affirmation filed with it; or
    2. 30 days after the final loss mitigation affidavit is served if it is filed afterwards the Gild to Docket is filed
  8. Inside 5 days of receiving a mediation request, the Excursion Court will frontward the asking to Function of Authoritative Hearings (OAH)
  9. OAH will schedule the mediation within 60 days of receiving the request. OAH can extend the time up to 30 days for practiced cause or longer if all parties concord.
    1. OAH will send the homeowner a scheduling notice
    2. OAH volition also include instructions for documents that need to exist provided to OAH and the lender'due south law business firm prior to the arbitration. These documents should exist provided no later than 20 days before the scheduled date of arbitration.
  10. OAH files a study with the court inside 7 days subsequently the mediation
  11. If in that location is no agreement in mediation, the Lender schedules the home for foreclosure sale.
    1. The Lender can schedule the auction as soon every bit fifteen days after the arbitration has occurred
  12. Homeowner may file a motion to stay or dismiss under Maryland Rule 14-211 if they take a valid defense on why the lender does non take the right to foreclosure on their home.
    1. The motion to stay must be filed within 15 days afterwards the mediation is held. If no arbitration occurs, then the motion must be filed within 15 days later OAH files its report with the court. This might occur if one party fails to announced for arbitration.
    2. The homeowner might file a stay if the homeowner has non received a terminal decision on the completed loss mitigation awarding that was received past the lender at least 37 days earlier the auction date.
  13. When the lender schedules the foreclosure sale, they must provide notice to homeowner.
    1. Notice must exist provided no after than ten days and no sooner than xxx days before the scheduled auction
  14. The Homeowner has the right to cure the default by paying all past due payments, penalties, and fees and reinstate the loan at any fourth dimension up to 1 business solar day before the foreclosure sale occurs.
  15. Within fourteen days afterward a postponement or counterfoil of a sale, the Lendor's law house shall send a find that the sale was postponed or cancelled to the borrower and/or the Homeowner.  The notices shall exist sent by start-form postal service, postage stamp prepaid.
  16. Once the foreclosure sale has occurred, the lender must file a written report of sale with the Circuit Court
    1. The report must be filed inside xxx days after the sale
  17. The Court Clerk issues a notice that the sale volition be ratified within 30 days of Clerk'southward observe
  18. If a homeowner wishes to file exceptions to sale, information technology must exist filed with the Court inside 30 days later the clerk'southward find
  19. The Circuit Court ratifies the sale later the time for exceptions has past or exceptions have been overruled
  20. Later on the foreclosure auction occurs and the purchaser from the foreclosure sale completes settlement, the court appointed auditor will file the Auditor'south Report with the Court.
  21. The Homeowner and any junior lienholder is entitled to receive a re-create of the Auditor's Written report.
  22. The Auditor's Report will show a deficiency or a surplus.
  23. If the Auditor's Study shows a deficiency, then the Lender may file a Move for Entry of a Deficiency Judgment.
  24. If the Auditor'southward Report shows a surplus, and so the court auditor will recommend to the Court how the proceeds should be distributed.
  25. The purchaser from the foreclosure sale files a Motion for Entry of Judgment Awarding Possession
    1. The Court must event an order granting possession
    2. Afterwards the entry of judgment, purchaser must send an eviction discover prior to executing the writ of possession
    3. After the eviction discover is served, purchaser must file a request for writ of possession
    4. Sheriff then executes the writ and evicts one-time homeowner

Read the Law and Rules:  Md. Lawmaking, Existent Property § 7-105.1; Dr.. Rules 2-647 (Enforcement of Judgment Awarding Possession); 14-102 (Judgment Awarding Possession); 14-207 (Pleadings); & 14-305 (Procedure Following Auction); COMAR 09.03.12

Source

Edited by John Due east. Driscoll, 3, Esq.

Last Updated: Tue, 03/08/2022 - 8:18 am

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