Can I reclaim my Maryland house if it goes into foreclosure?

If you lose your Maryland home to foreclosure, you have the option to redeem (repurchase) it before the court approves the foreclosure sale.

Question

I lost my job a few months ago and became behind on my home payments. My home was then foreclosed on. I was just employed as a consultant for a long-term project that pays quite well. Unfortunately, I won’t begin that job for a few weeks, and the foreclosure auction is quickly approaching. I earned a hiring bonus and would prefer to remain in my current residence. Is it feasible for me to reclaim the residence if the foreclosure proceeds? Maryland is where I call home.

Answer

No, you will not be able to reclaim your house after the foreclosure. Some states enable foreclosed homeowners to repurchase their property following the foreclosure sale, but Maryland is not one of them.

You do, however, have until the court ratifies the sale to pay off the whole outstanding debt and retain the property, a process known as “redeeming” the home.

When Can You Redeem Your Maryland Foreclosure?

While you cannot redeem your house after it has been sold at foreclosure in Maryland, you do have a “equitable right of redemption” before the sale is completed.

The majority of foreclosures in Maryland are nonjudicial. However, as part of the process, the foreclosure sale must be ratified (confirmed) by a court. You have till the house is ratified to redeem it. You will not have another chance to redeem your residence after that. Ratification normally occurs 30 to 45 days following the transaction, however this varies by jurisdiction.

How Much Will It Cost to Save Your House?

To redeem, you must pay the whole overdue loan amount, plus any extra legal charges such as interest, lawyers’ fees, and expenses. Consult a Maryland attorney to learn the specifics of redeeming your house.

Take Early Action to Save Your Home

Other possibilities that may enable you to retain the house may be accessible to you—but you must act before the sale. You could, for example, potentially:

To reactivate the loan, pay off the past-due sums. You may reinstate under Maryland law at any time up to one business day before the foreclosure auction, however it’s advisable to reinstate as soon as possible rather than waiting until the last minute.
Apply for a mortgage modification, forbearance agreement, or repayment plan, and maybe you’ll obtain one.

The sooner in the foreclosure process you cooperate with your servicer to come up with an alternative to foreclosure, the better. If you haven’t already, contact your loan servicer right away to learn about your alternatives for retaining your house.

Discovering Maryland’s Foreclosure Regulations

To locate the Maryland laws that address foreclosures, see sections 7-101 through 7-111 of the Maryland Code. Examine Maryland Rules 14-201 through 14-218 as well. Statutes change, so double-checking is usually a good idea. The way courts and other organizations interpret and implement the law might also shift. Some restrictions may even differ across states. These are just a few of the reasons why you should visit an attorney if you are facing foreclosure.