Maryland's Mortgage Foreclosure Process - Financial Regulation

Below is a summary of the mortgage foreclosure process for owner-occupied residential properties in Maryland. This summary includes brief descriptions of some of the documents sent to homeowners throughout the foreclosure process. This is general information only and not intended as legal advice.

See Foreclosure Terms – Definitions and Foreclosure Steps and Timeline published by the People’s Law Library of Maryland for definitions of common words and phrases and additional details on the foreclosure process. For tips on avoiding foreclosure and recognizing scams, visit Foreclosure Help for Homeowners.

1) Missed Mortgage Payment

• The mortgage servicer mails a Notice of Intent to Foreclose (NOI) to the homeowner after the first missed payment or other contractual default on a mortgage.
  • The “mortgage servicer” or “servicer” is the company that receives and processes mortgage payments. The servicer also evaluates a mortgage borrower’s financial options for avoiding foreclosure.
  • The NOI is a warning to the homeowner that a foreclosure action could be filed in court. The NOI must be sent no less than 45 days before the foreclosure is filed.

  2) Foreclosure Filed in Court

  • The Order to Docket (OTD)is filed in court by the law firm representing the servicer, lender or the secured party of the loan. The OTD is the first court filing initiating the foreclosure process. The OTD may also be referred to as the “Notice of Foreclosure Action” or “Complaint to Foreclose”.
  • The OTD can be filed in court as soon as 90 days after the first missed payment (or 120 days if the loan is covered by federal law, which most loans are). The homeowner will be served with a copy of the OTD.
  • The OTD will include either a Preliminary or Final Loss Mitigation Affidavit.
    • A Preliminary Loss Mitigation Affidavit is filed with the OTD if the servicer has not started or not yet completed the loss mitigation review. Once the servicer completes the review, a Final Loss Mitigation Affidavit is filed and then a copy is mailed to homeowner.
    • A Final Loss Mitigation Affidavit is filed with or after the OTD when the servicer has completed the loss mitigation review. For eligible homeowners, this affidavit will have a “Request for Foreclosure Mediation” form.

    3) Foreclosure Mediation (optional for eligible homeowners)

    • Mediation is a meeting between the homeowner, the servicer or law firm, and a neutral third party called an “administrative law judge”. The purpose of mediation is to give all parties an opportunity to openly discuss alternatives to foreclosure and come to an agreement.
    • The homeowner has 25 days to request foreclosure mediation after the receipt or the date of mailing of the Final Loss Mitigation Affidavit. To participate in mediation, the homeowner must submit the Request for Mediation form and $50 fee as soon as possible to their county’s circuit court.
    • Once received by the court, the mediation request will be forwarded to the Office of Administrative Hearings (OAH). OAH will assign an administrative law judge and schedule the mediation within 60 days.
    • Homeowners who have requested mediation should check their mail frequently – notice of the date of their mediation will be mailed from OAH. If a homeowner fails to appear for their mediation, OAH will notify the court and the servicer will be allowed to schedule the foreclosure sale.
    • To increase the chances of successful mediation, the homeowner should bring all relevant documents and be prepared to negotiate with their mortgage servicer.
    • Learn more about foreclosure mediation and how to access legal support.

    4) Foreclosure Sale

    • The foreclosure sale or auction is when the servicer or law firm sells the property securing the mortgage loan.
    • If the homeowner participated in mediation and no agreement was reached, the sale could occur as soon as 15 days after the mediation session.
    • If the homeowner did not participate in mediation, the sale can occur as soon as 45 days after the homeowner was served the Final Loss Mitigation Affidavit, or 30 days from the date the Final Loss Mitigation Affidavit was mailed to the homeowner.
    • The homeowner must be provided with notice of the foreclosure sale at least 10 days before the scheduled sale date.
    • The homeowner may file a court motion to request a delay or cancellation of the foreclosure sale if they have a valid claim as to why the lender or secured party does not have the right to foreclose.
    • After the foreclosure sale, the homeowner has 30 days from the date of the Notice of Report of Sale to file exceptions. If none are filed, or if the filed exceptions are overruled, then the court will ratify the foreclosure sale. Ratification is necessary before the title transfers to the purchaser.
    • Free legal help from the court is available for homeowners who do not have an attorney (recommended for homeowners who wish to file motions and exceptions). Visit the Maryland Court Help Center online or call 410-260-1392 for assistance.

    5) Eviction

    • The homeowner can be evicted from the property as soon as 15 days after the sale is ratified.
    • Homeowners should plan for alternative housing earlier in the process to avoid a forced eviction. However, if a homeowner moves out of their home before the foreclosure sale purchaser is awarded possession of the property, the homeowner is still responsible for property maintenance and taxes.

    Maryland Department of Labor
    1100 North Eutaw Street, Baltimore, MD 21201
    Dial 7-1-1 to place a call through Maryland Relay