In the state of Maryland, both foreclosure processes apply. This means the lender has recourse to both non-judicial and judicial foreclosure. However in the case of a non-judicial foreclosure, restrictions do apply. If a deed of trust is used as the primary instrument of security, and it contains a “power of sale” clause, the lender is still required to file an order to docket with the court.
Essentially a power of sale clause gives power to the trustee who is a representative of the lender to sell a property if the loan is delinquent. So the lender does not have to have a foreclosure hearing prior to a foreclosure sale in Maryland, but they do have to file a court docket.
Because both judicial and non-judicial foreclosure processes are recognized in Maryland, the law provides for use of both the deed of trust and the mortgage lien. It generally takes about 90 – 100 days to finalize the foreclosure proceedings if they are uncontested, and this is a short period of time compared to many other US states. Borrowers are not allowed any rights of redemption; however lenders are allowed to pursue a deficiency judgment under certain conditions.
Laws in Maryland also allow an “assent to decree foreclosure” but only if the security document stipulates this. The process is very similar in nature, the lender who has rights to assent of decree, is compelled to file a complaint, but a hearing does not have to be held prior to the actual foreclosure sale. The sale may be conducted by the sheriff or the trustee and take place at the property or the courthouse.
These ambiguous foreclosure laws make it a little more difficult to understand the foreclosure process in Maryland. However similar general practices apply regarding the issuance of notices and advertisements.