Facing Foreclosure in Maryland?

Maryland uses judicial foreclosure. No law sets one length for the whole process. The law sets the earliest date the sale can happen after the case is filed, and a judge must approve (ratify) the sale afterward, but no law sets how fast the case goes. When 12 C.F.R. § 1024.41 applies to a principal-residence mortgage, the rule generally bars a servicer in an ordinary delinquency-based foreclosure from making the first notice or filing until the loan is more than 120 days delinquent. Limited exceptions apply to due-on-sale violations and joining a superior or subordinate lienholder's foreclosure. Some state notices that are only mailed to you can come during that wait. Maryland law sets these steps, each with its own minimum: Notice of intent to foreclose: sent at least 45 days before the case is filed (Md. Code, Real Prop. § 7-105.1).

Often there are still ways to try, though none is guaranteed: (1) Reinstatement — paying what you're behind, plus fees, to bring the loan current, where state law or your mortgage allows it (Maryland's rule is under "When is it too late?" above). (2) Loan modification — if 12 C.F.R. § 1024.41 applies to a mortgage secured by your principal residence and no § 1024.30 exemption applies, including exemptions for small servicers, reverse-mortgage transactions, and qualified lenders, a complete application received more than 37 days before a scheduled sale generally requires evaluation for available options and a written decision; the rule does not require a particular modification. (3) Forbearance — a temporary pause on payments, if your servicer agrees. (4) Bankruptcy — filing generally creates an automatic stay that can stop a foreclosure sale while it lasts, though the stay has exceptions and can last only a short time in some cases. (5) Short sale — selling the home for less than you owe, if your lender approves.

Yes. Maryland has the Maryland Foreclosure Mediation Program. Who can use it and how to start depends on the program's rules (program details). Mediation gives you a chance to negotiate directly with your lender under the supervision of a neutral third party. This can result in loan modifications, payment plans, or other alternatives to foreclosure.

Yes. Maryland allows deficiency judgments, so after the sale the lender can generally go to court for the difference between what you owed and the sale price. For a home that was owner-occupied when the foreclosure case was filed, the lender may file a motion for a deficiency judgment after the court finally ratifies the auditor's report, if the sale proceeds, after the costs and expenses the court allows, do not cover the debt and accrued interest. The motion must be filed within 3 years after that ratification (Md. Code, Real Prop. § 7-105.17).

Yes. HUD-approved housing counseling agencies give foreclosure-prevention counseling for free, and a counselor can help you talk to your servicer. HUD lists 38 approved counseling agencies in Maryland; its referral line is 1-800-569-4287.

As Maryland law sets it: Up to $125,000 of equity in an owner-occupied home per individual, but only in a bankruptcy case filed on or after June 1, 2026 ($125,000 total if more than one person in the same case claims the same home). Adjusted for inflation each year starting in fiscal year 2028. Maryland does NOT have a homestead exemption for real property that protects against mortgage foreclosure. There is a property tax credit for homeowners (the Homestead Tax Credit, which limits assessment increases for owner-occupants), but this is not a foreclosure exemption. In a bankruptcy case filed on or after June 1, 2026, an individual can exempt up to $125,000 in an owner-occupied home, including one held in the owner's revocable trust; if more than one person in the same case claims the same home, the total is still capped at $125,000. Starting in fiscal year 2028, the amount is adjusted each year for inflation. The exemption does not remove a valid mortgage lien.

Government-backed loans have their own rules on top of Maryland law. FHA requires a meeting or reasonable efforts to arrange one in covered defaults. Current rules allow approved remote methods; exceptions and timing requirements apply. VA and USDA set their own help options for the loans they back; the forbearance guide and loan modification guide explain each program's options, with the rule behind each one.

Generally, no. HAF programs, including the Maryland HomePoint, can't commit new money after September 30, 2026 (Treasury). If the program approved you before then, ask it about payments still being processed.

Possibly, with your lender's approval. In Maryland, a deficiency waiver (a release of the remaining balance) can be negotiated as part of a short sale approval. Short sales are available with servicer approval. Deficiency waivers should be obtained in writing. Whether the lender can still collect the rest depends on the terms it agrees to.