Maryland Judgment Foreclosing Mortgage and Ordering Sale

• Category: Real Estate - Foreclosures
• State: Multi-State
• Control #: US-02647BG
• Format: Word; Rich Text

Description

A judicial foreclosure is one which results from a court action rather than from the power of sale given to a trustee. Judicial foreclosures occur when a trust deed or mortgage deed does not have a power of sale clause, thus compelling the lender to take the borrower to court. This is in contrast to a non-judicial foreclosure, in which a foreclosure can be completed outside the court system. Maryland Judgment Foreclosing Mortgage and Ordering Sale is a legal process used to enforce a mortgage lender's right to sell a property in order to recover the outstanding debt owed by the borrower. This foreclosure action is initiated when the borrower defaults on their mortgage payments and fails to resolve the issue through other means. In Maryland, there are two types of judgment foreclosing mortgage and ordering sale that can take place: strict foreclosure and foreclosure by sale. 1. Strict Foreclosure: In this type of foreclosure, the court awards the property directly to the lender without an actual sale. It typically occurs when the property's fair market value is less than the total outstanding debt. The borrower is given a specific period of time to redeem the property by paying the outstanding debt, fees, and costs associated with the foreclosure. If the borrower fails to do so, the lender gains full ownership of the property. 2. Foreclosure by Sale: This is a more common type of foreclosure process in Maryland. In this case, the court authorizes the lender to sell the property in a public auction to recover the outstanding debt. The proceeds from the sale are used to pay off the mortgage debt, and any remaining funds are distributed to other lien holders or the borrower if applicable. Keywords: Maryland, judgment, foreclosing mortgage, ordering sale, foreclosure action, borrower, lender, default, outstanding debt, strict foreclosure, foreclosure by sale, court, property, fair market value, redeem, fees, costs, public auction, lien holders.

Maryland Judgment Foreclosing Mortgage and Ordering Sale is a legal process used to enforce a mortgage lender's right to sell a property in order to recover the outstanding debt owed by the borrower. This foreclosure action is initiated when the borrower defaults on their mortgage payments and fails to resolve the issue through other means. In Maryland, there are two types of judgment foreclosing mortgage and ordering sale that can take place: strict foreclosure and foreclosure by sale. 1. Strict Foreclosure: In this type of foreclosure, the court awards the property directly to the lender without an actual sale. It typically occurs when the property's fair market value is less than the total outstanding debt. The borrower is given a specific period of time to redeem the property by paying the outstanding debt, fees, and costs associated with the foreclosure. If the borrower fails to do so, the lender gains full ownership of the property. 2. Foreclosure by Sale: This is a more common type of foreclosure process in Maryland. In this case, the court authorizes the lender to sell the property in a public auction to recover the outstanding debt. The proceeds from the sale are used to pay off the mortgage debt, and any remaining funds are distributed to other lien holders or the borrower if applicable. Keywords: Maryland, judgment, foreclosing mortgage, ordering sale, foreclosure action, borrower, lender, default, outstanding debt, strict foreclosure, foreclosure by sale, court, property, fair market value, redeem, fees, costs, public auction, lien holders.