How Can a Lender Foreclose on a Property in Maryland?

A lender can foreclose on a Maryland property in one of three ways, depending on the terms of the mortgage agreement.
If the mortgage agreement contains a power of sale clause then a lender must file with the court but a judicial hearing is not required prior to the foreclosure. The lender must provide the public with the notice that is required by law or by the mortgage terms. After the sale, the lender must file a report of the sale with the court.
Some mortgage agreements contain an assent to a decree of foreclosure clause. That means that the borrower agrees that the lender may conduct a foreclosure sale if the borrower is in default on the loan. As with a power of sale clause, the lender must file with the court but no judicial hearing is required prior to the foreclosure.
In the absence of either a power of sale clause or an assent to a decree of foreclosure clause, the lender must file with the court and a court hearing must be held. If the court agrees that a foreclosure sale should take place then the lender must follow the terms set forth by the court.

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