Foreclosure Steps and Timeline

This article describes the steps and timeline of a foreclosure case from beginning to end.

1. Mortgage in default

Default = 1 day past mortgage due date
Lender sends Notice of Intent to Foreclose (usually sent 45 days after default) and a loss mitigation application

Lender’s law firm files Order to Docket.
- Can file any time after 45 days from when the Notice of Intent to Foreclose is sent (or 90 days in default)
Next step – depends on whether Lender files a preliminary loss mitigation affidavit or final loss mitigation affidavit
If preliminary –
- Lender must wait 28 days after filing the Order to Docket before filing the final loss mitigation affidavit
- Lender must file the final loss mitigation affidavit at least 30 days before sale
When Lender sends the final loss mitigation affidavit, they must also send a mediation request form

Homeowner must file mediation request and send a payment of $50, within 25 days of:
- The Order to Docket, if final loss mitigation affidavit served at same time
- Receipt of final loss mitigation affidavit filed after the Order to Docket is filed
- In either case – 25 days from final loss mitigation affidavit
If homeowner does not request mediation, the sale can occur:
- 45 days after the homeowner has been serviced with the Order to Docket if it has a final loss mitigation affidavit filed with it; or
- 30 days after the final loss mitigation affidavit is served if it is filed after the Order to Docket is filed

Within 5 days of receiving a mediation request, the Circuit Court will forward the request to Office of Administrative Hearings (OAH)

OAH will schedule the mediation within 60 days of receiving the request. OAH can extend the time up to 30 days for good cause or longer if all parties agree.
- OAH will send the homeowner a scheduling notice
- OAH will also include instructions for documents that need to be provided to OAH and the lender’s law firm prior to the mediation. These documents should be provided no later than 20 days before the scheduled date of mediation.

OAH files a report with the court within 7 days after the mediation
- If there is no agreement in mediation, the Lender schedules the home for foreclosure sale.
- The Lender can schedule the sale as soon as 15 days after the mediation has occurred

Homeowner may file a motion to stay or dismiss under Maryland Rule 14-211 if they have a valid defense on why the lender does not have the right to foreclosure on their home.
- The motion to stay must be filed within 15 days after the mediation is held. If no mediation occurs, then the motion must be filed within 15 days after OAH files its report with the court. This might occur if one party fails to appear for mediation.
- The homeowner might file a stay if the homeowner has not received a final determination on the completed loss mitigation application that was received by the lender at least 37 days before the sale date.

When the lender schedules the foreclosure sale, they must provide notice to homeowner.
- Notice must be provided no later than 10 days and no sooner than 30 days before the scheduled sale

The Homeowner has the right to cure the default by paying all past due payments, penalties, and fees and reinstate the loan at any time up to 1 business day before the foreclosure sale occurs.
Within 14 days after a postponement or cancellation of a sale, the Lender's law firm shall send a notice that the sale was postponed or cancelled to the borrower and/or the Homeowner. The notices shall be sent by first-class mail, postage prepaid.
Once the foreclosure sale has occurred, the lender must file a report of sale with the Circuit Court
- The report must be filed within 30 days after the sale

The Court Clerk issues a notice that the sale will be ratified within 30 days of Clerk’s notice

If a homeowner wishes to file exceptions to sale, it must be filed with the Court within 30 days after the clerk’s notice

The Circuit Court ratifies the sale after the time for exceptions has past or exceptions have been overruled

After the foreclosure sale occurs and the purchaser from the foreclosure sale completes settlement, the court appointed auditor will file the Auditor's Report with the Court.
- The Homeowner and any junior lienholder is entitled to receive a copy of the Auditor's Report.
- The Auditor's Report will show a deficiency or a surplus.
- If the Auditor's Report shows a deficiency, then the Lender may file a Motion for Entry of a Deficiency Judgment.
- If the Auditor's Report shows a surplus, then the court auditor will recommend to the Court how the proceeds should be distributed.

The purchaser from the foreclosure sale files a Motion for Entry of Judgment Awarding Possession
- The Court must issue an order granting possession
- After the entry of judgment, purchaser must send an eviction notice prior to executing the writ of possession
- After the eviction notice is served, purchaser must file a request for writ of possession
- Sheriff then executes the writ and evicts former homeowner

The Foreclosure Process from the Maryland Courts

Source

Edited by John E. Driscoll, III, Esq.