State Foreclosure Law

Maryland Foreclosure Laws

Foreclosure laws, timelines, homeowner protections, and free legal resources for Maryland.

Process
Judicial
Through the court system §
Foreclosure Length
Varies
Depends on the case
Homestead Exemption
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)
Must file to claim: claim required in bankruptcy · the rule §
Deficiency Judgment
Allowed
Allowed §
38 source pages cited · Last checked Mar 10, 2026
Not legal advice. This page provides general information about Maryland foreclosure law based on cited statutes and rules. Every citation links to the official source for verification. Laws change — readers should confirm current statute text and consult a Maryland-licensed attorney for situation-specific advice.

Facing foreclosure? The timeline, your rights and your options are laid out in the Maryland foreclosure guide →

On this page

Governing Statutes

Citation Title Covers
Md. Code, Real Prop. § 7-105 et seq. Foreclosure Procedures Power of sale foreclosure process, notice requirements, order to docket, final ratification, surplus funds
Md. Code, Real Prop. § 7-105.1 Loss Mitigation and Pre-Foreclosure Notice 45-day notice of intent to foreclose, loss mitigation affidavit requirement, mandatory mediation
Md. Code, Real Prop. § 7-105.14 Foreclosed Property Registry Requires the Commissioner of Financial Regulation to keep an online Foreclosed Property Registry, and requires the buyer at a foreclosure sale of residential property to register it within 30 days after the sale.
Md. Code, Real Prop. § 7-113 PHIFA (Protection of Homeowners in Foreclosure Act) Protections against foreclosure rescue scams, equity stripping, prohibited acts by foreclosure consultants

Maryland Foreclosure Process and Your Rights

Maryland uses judicial foreclosure. State law does not set one typical length from the first notice to the sale. §

  • Paying to stop the foreclosure: Up to 1 business day before the foreclosure sale. The borrower can cure the default and reinstate the loan by paying all past-due payments, penalties, and fees (Md. Code, Real Prop. § 7-105.1(p)); on request, the lender must give the borrower or the borrower's attorney the amount needed and instructions for paying it within a reasonable time. §
  • After the sale: No post-sale redemption. §
  • Homestead exemption: 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. §
  • Mediation: Maryland has a statewide foreclosure mediation program: the Maryland Foreclosure Mediation Program. §

Step-by-step timeline, your rights at each stage, mediation, options to keep or leave the home, and what happens after the sale: Read the full Maryland foreclosure guide →

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Regulatory Oversight & Complaint Filing

Maryland homeowners who believe a mortgage servicer or lender has violated state or federal law may file complaints with the following regulatory agencies.

Financial Institutions Regulator
Maryland Office of Financial Regulation (OFR)
File a complaint →
Attorney General — Consumer Protection
Maryland Office of the Attorney General — Consumer Protection Division
Consumer protection information →
Housing Finance Agency
Maryland Department of Housing and Community Development (DHCD)
Phone: 1-800-756-0119

Special Foreclosure Types in Maryland

Beyond the standard judicial foreclosure process, Maryland law addresses several specialized foreclosure categories.

HOA & Condo Association Foreclosure
Under Md. Code, Real Prop. § 11-110 (condominiums) and § 11B-117 (homeowners associations), HOA and condo associations may enforce unpaid assessments by imposing a lien under the Maryland Contract Lien Act and foreclosing it. §
In the foreclosure of a first mortgage or first deed of trust recorded on or after October 1, 2011, part of the association's lien has priority over the lender's claim: no more than 4 months of unpaid regular assessments for common expenses, capped at $1,200 and excluding interest, collection costs, late charges, fines, attorney's fees and special assessments.
Tax Lien Foreclosure
Maryland counties may sell tax lien certificates to investors when real estate taxes are delinquent. §
The certificate holder may then file in Circuit Court to foreclose the right of redemption, generally at any time after 6 months from the tax sale, or 9 months for owner-occupied residential property; the certificate is void unless that case is filed within 2 years of the certificate of sale.
Reverse Mortgage Foreclosure
HECM reverse mortgages follow standard Maryland judicial foreclosure procedures. §
HUD Mortgagee Letter requirements apply.

Lien Priority in Maryland

Maryland follows the race-notice recording statute under Md. Code, Real Prop. § 3-201 et seq. A purchaser who records first and pays value without notice of a prior unrecorded interest takes priority.

Statute of Limitations in Maryland

Mortgage Foreclosure
Varies §
No statute of limitations applies to mortgage foreclosure actions in Maryland, the Court of Special Appeals held in Daughtry v. Nadel (2020), because foreclosure is equitable rather than a civil action at law. The 12-year limit for sealed instruments in Md. Code, Cts. & Jud. Proc. § 5-102 does not apply to a deed of trust, mortgage, or promissory note signed under seal that secures or is secured by owner-occupied residential property. Actions on a simple written contract: 3 years.
Written Contracts
3 years §
Three years from accrual is the general limit for a civil action at law, unless another provision of the Code sets a different period; for example, § 5-102 generally sets 12 years for a contract under seal.
Deficiency Judgment
3 years §
For residential property that was owner-occupied when the foreclosure was filed, a motion for a deficiency judgment must be filed within 3 years after the final ratification of the auditor's report (Md. Code, Real Prop. § 7-105.17).

Notable Maryland Foreclosure Cases

Key court decisions that have shaped foreclosure law and homeowner protections in Maryland.

Anderson v. Burson
424 Md. 232, 35 A.3d 452 (2011)
The Court of Appeals held that substitute trustees under a residential deed of trust may enforce an unindorsed promissory note as nonholders in possession, but must prove the note's transfer history; here the borrowers' concessions established that history, so the foreclosure could proceed.
Bates v. Cohn
417 Md. 309, 9 A.3d 846 (2010)
The Court of Appeals held that a homeowner ordinarily must raise known and ripe defenses to the conduct of a foreclosure sale, including a lender's failure to comply with pre-sale loss mitigation requests, before the sale rather than in post-sale exceptions. The court did not reach the merits of the borrower's loss mitigation claim.

Probate & Inheritance in Maryland

When a mortgaged property owner dies, foreclosure proceedings interact with the probate process. Maryland law establishes specific rules for estate notification, heir protections, and the rights of executors to cure defaults.

Pause When the Borrower Dies
State law doesn't pause a foreclosure when the borrower dies, so it can go on during probate.
Notification to Estate
The lender must notify the estate or personal representative before proceeding.
If a borrower dies, the substitute trustee must identify and serve the personal representative of the estate and any heirs as part of the foreclosure notice procedure.
Heir Protections
Heirs who inherit and occupy the property as a primary residence may qualify as successors in interest under CFPB Regulation X (12 CFR 1024.31).

Consumer Protection & Compliance in Maryland

State consumer protection statutes, foreclosure rescue fraud laws, and professional compliance rules that apply to mortgage servicing and foreclosure-related services in Maryland.

Mortgage Relief Scam Protections
State law specifically addresses mortgage relief scams.
Attorney Advertising Rules
Maryland Rules of Professional Conduct (MRPC 7.1-7.3) govern attorney advertising. §
Lead Generation Restrictions
No Maryland-specific lead generation statute for foreclosure defense identified beyond the Consumer Protection Act and attorney advertising rules.

Legal Aid & Pro Bono Resources in Maryland

  • ⚖
    Maryland Legal Aid
    Area served: Statewide, 12 offices.
    mdlab.org →
  • ⚖
    Community Law Center (Baltimore)
    Area served: Baltimore City — Foreclosure Prevention Project.
    communitylaw.org →
  • ⚖
    Maryland Volunteer Lawyers Service (MVLS)
    Area served: Statewide referral to volunteer attorneys for low-income homeowners.
    mvlslaw.org →
  • ⚖
    Civil Justice (Baltimore)
    Area served: Baltimore area housing and consumer law.
    civiljusticenetwork.org →
  • 🏠
    HUD-Approved Housing Counselors
    Free, federally funded housing counseling agencies in Maryland. Services include loan modification applications, mediation preparation, and loss mitigation guidance.
    Find a counselor in Maryland →
  • 📞
    Maryland Attorney General Consumer Protection Division
    Provides mediation to help resolve consumer complaints against businesses. The site says to report suspected foreclosure fraud or scams immediately. Toll-free: 1-888-743-0023.
    410-576-6300 →
  • 📋
    Maryland State Bar Association Lawyer Referral Service
    State bar lawyer referral service.
    msba.org →

Find Help in Maryland

We maintain a verified directory of free and low-cost help providers in Maryland. All are government-approved or federally funded.

38 HUD-approved housing counselors Free foreclosure prevention counseling 1 Legal aid offices Free legal representation for qualifying homeowners 40 Credit counseling agencies DOJ-approved pre-bankruptcy credit counseling 47 Debtor education providers Required post-filing debtor education courses

Browse all 126 providers in Maryland →

National Foreclosure Guides

These guides explain foreclosure at the federal level — homeowner rights, available options, and recommended steps at each stage. They apply in every state, including Maryland.

Facing Foreclosure?
Overview of the process, available options, and free help resources
How to Stop Foreclosure
Immediate options — forbearance, modification, legal aid, bankruptcy
Your Rights in Foreclosure
Federal protections under CFPB Regulation X and loss mitigation rules
How Foreclosure Works
Stage-by-stage walkthrough from missed payments to sale
Behind on Your Mortgage?
Options for borrowers who have missed or expect to miss a payment
Bankruptcy & Foreclosure
How Chapter 7 and Chapter 13 can stop or delay foreclosure

Maryland Distress Data

The American Distress Index tracks household financial distress at the national level. Here are ADI indicators with particular relevance to Maryland homeowners:

Foreclosure Filings
National trend
National foreclosure filings. Maryland mainly uses judicial foreclosure (through the courts).
FHA mortgage delinquency
FHA delinquency rate
Share of FHA loans at least one payment behind, from the Mortgage Bankers Association's quarterly survey.
Foreclosure volume
Foreclosure starts & completions
Monthly foreclosure starts and completions from ATTOM Data Solutions.
Newly late mortgages
Current to 30 days late
Share of mortgages moving from current to 30 days past due, from Cotality (formerly CoreLogic).

See the full picture: Foreclosure Statistics 2026 | Mortgage Delinquency Statistics 2026

Facing foreclosure in Maryland? Tell me what's going on.

Answer a few quick questions and I'll connect you with someone who can help where you live. It's free.

Step 1 of 4

Tell me about your situation

Select all that apply.

It's free. I don't sell your information, and no one pays me for your request. I share your details only with the one attorney, agent or provider I connect you with. Privacy · Prefer to call? (888) 602-4161

Ask a question about foreclosure law in Maryland

General information, not legal advice.

🛟
Free help also exists in Maryland: the Maryland Attorney General Consumer Protection Division at 410-576-6300, or a HUD-approved housing counselor at no cost.