Posted on: 12th Aug, 2009 06:10 am
does anyone know the maryland law concerning a deed in lieu of foreclosure? i completed one in january 2008 in georgia after being relocated to the dc area. i was not able to sell the house, and my renters continued to move out, not paying rent which caused me to pay a mortgage and a rentaly payment in two places. i just recently applied for a loan in virginia and the lender said that virginia views a deed in lieu the same as a foreclosure. i am trying to find out if that is true for maryland as well.
Hi Msdiva,
I do not think deed in lieu foreclosure and foreclosure are all the same in Maryland. In a deed in lieu of foreclosure, you surrender the property to the lender with his permission. The lender then sells off the property and recovers his dues. The balance amount which results from the sale of the property will be forgiven by the lender.
As far as foreclosure in Maryland is concerned, Maryland is a judicial foreclosure state. A foreclosure procedure in Maryland lasts for 46 days. The lender will have to file a complaint against the borrower and obtain a decree of sale from the court. The court will decide whether a default has occurred. In case of a default, the court will fix the amount of the debt, interest and costs due. Then, the court would order that if payment is not made within a certain time, the property must be sold off to satisfy the debt.
Thanks
I do not think deed in lieu foreclosure and foreclosure are all the same in Maryland. In a deed in lieu of foreclosure, you surrender the property to the lender with his permission. The lender then sells off the property and recovers his dues. The balance amount which results from the sale of the property will be forgiven by the lender.
As far as foreclosure in Maryland is concerned, Maryland is a judicial foreclosure state. A foreclosure procedure in Maryland lasts for 46 days. The lender will have to file a complaint against the borrower and obtain a decree of sale from the court. The court will decide whether a default has occurred. In case of a default, the court will fix the amount of the debt, interest and costs due. Then, the court would order that if payment is not made within a certain time, the property must be sold off to satisfy the debt.
Thanks
You can check out my post at
http://www.mortgagefit.com/problems/dil-personalproperty.html#113762
http://www.mortgagefit.com/problems/dil-personalproperty.html#113762
Thanks for your response