16. Understanding the Foreclosure Process in Cockeysville MD

Many people going through the foreclosure process want to get out from under that burdensome property and wonder if they can sell the home in foreclosure. We are house buyers in Baltimore and we can help you in understanding the foreclosure process in MD  that is an important part of navigating your own home foreclosure.

Before we dive in…

Understanding The Foreclosure Process In Cockeysville MD

What is Foreclosure in Maryland anyway?

The legal process that lenders use to take back property is foreclosure, generally after the borrower stops making payments.

Foreclosure is no fun.  But just know that it’s not the end of the world.

When you know how foreclosure in Cockeysville MD works… it arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible.

If you decided you want to sell your house to escape foreclosure, you’ll need to find investor homebuyers who purchase foreclosures.

The Basic Stages of A Foreclosure in Cockeysville Maryland

There are a few stages that are important to any foreclosure process. Especially if you are hoping to sell property in foreclosure before it’s too late.

Foreclosure works differently in different states around the country. Thus you may find that the impacts of home foreclosure in Maryland are different than in other states.

The two ways different states use to foreclose upon a property are judicial sale or power of sale.

Connect with us by calling (410) 870-9228 or through our contact page to have us walk you through the specific foreclosure process here locally in Cockeysville Maryland.

In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment. As you usually can’t stay in your house that’s been foreclosed on.

Under Judicial Foreclosure In MD:

  • Your mortgage lender must file suit in the court system.
  • You’ll get a letter from the court demanding payment.
  • Assuming the loan is valid, you’ll have 30 days to bring payment to court to cease foreclosure (and sometimes that can be extended).
  • If you don’t pay during the payment period, a judgment will be entered and the lender can request the sale of your property – usually through an auction.
  • Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.

Under Power of Sale (or Non-Judicial Foreclosure) In MD:

  • The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
  • After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
  • The trustee can then sell your home in foreclosure to the lender at a public auction (notice must be given).

Anyone who has an interest in the property must be notified during either type of foreclosure.

For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.

What Happens After A Foreclosure Auction in Cockeysville?

After a foreclosure is complete, the loan amount is paid off with the sale proceeds.

Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.

A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds due after you have given your house back to the bank via a foreclosure sale.

Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.

Here’s a great resource that lists the state by state deficiency judgment laws, since every state is different.

Sell My House in Cockeysville MD

Generally, it’s best to follow foreclosure prevention measures in order to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at Creo Home Buyers to help you negotiate discounts off the amount owed so you can stop the bank from foreclosing on your house.

One way to avoid foreclosure of your house is to work with reputable property investors. Experienced investors can step in by negotiating directly with banks (with your permission) to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.

If you are potentially facing a short sale or foreclosure of your property and need to sell your house in Cockeysville or anywhere near Maryland in record time, contact us for a fast offer!

We are homebuyers in MD who pay cash for houses in Cockeysville MD like yours from people facing foreclosure who need to sell fast.

Give us a call anytime (410) 870-9228 or
fill out the offer form on our website today! >>

Another Foreclosure Resource For Cockeysville MD HomeOwners:

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