Maryland Foreclosure Questions & Answers

Q: I don't think my private mortgage lender was licensed in the state of Maryland, how would I find out and what should I o

1 Answer | Asked in Consumer Law and Foreclosure for Maryland on
Answered on Mar 11, 2019
Adam Savett's answer
You can check the registration status of your lender through NMLS (the Nationwide Multistate Licensing System / Nationwide Mortgage Licensing System and Registry). They maintain a consumer oriented website, here:

http://www.nmlsconsumeraccess.org/

Note that not all types of lenders need the same types of licenses.

You may want to contact the Montgomery County Office of Consumer Protection (OCP), as they are the agency responsible for enforcing consumer protection laws in...

Q: Can a settlement agent who signs a loan application also be the notary and witness on a deed of trust.

3 Answers | Asked in Consumer Law, Foreclosure, Real Estate Law and Securities Law for Maryland on
Answered on Mar 3, 2019
Richard Sternberg's answer
If the notary is applying for the loan, he cannot notarize his own signature. Almost all settlement agents are notaries. And, notaries can of course be a witness. That’s pretty much what a notary is: a witness to the authenticity of a signature. Maryland Law does require deeds and deeds of trust to be prepared under the supervision of a lawyer, but there is a loophole that you could sail a battleship through. If you doubt the enforceability of your deed of trust, you can ask a Maryland lawyer...

Q: My father recently purchased a single-Family home at auction. What is the best way for me to get a loan for 60% equity?

3 Answers | Asked in Foreclosure and Real Estate Law for Maryland on
Answered on Feb 11, 2019
Thomas C. Valkenet's answer
The answer depends on who is asking. For instance, the best thing for your father is for you to obtain a loan and to pay him the full purchase price in exchange for a deed. He then walks away and you live in the house. The best thing for you might be an option to purchase, or a rent-to-own. These are tricky documents to write, and it means your father is waiting for his money while the property is locked up in your recorded option for possibly years. Whatever lawyer you bring this to will have...

Q: Is anyone familiar or heard of Mortgage Edge Corporation. They're listed on Deed of Trust as beneficiary.

1 Answer | Asked in Consumer Law, Foreclosure, Real Estate Law and Civil Rights for Maryland on
Answered on Jan 11, 2019
Cedulie Renee Laumann's answer
The beneficiary under a Deed of Trust IS the lender.

Although this online forum is not designed to seek legal research on specific issues / entities / matters, you can check with the State Department of Assessments and Taxation (SDAT) for information on the last known resident agent for corporations operating in this state.

While not legal advice, I hope the above general information helps!

Q: I am a trustee on a property that's in pre foreclosure. I would like to buy the home. Trust doc says we can buy and sell

2 Answers | Asked in Real Estate Law, Foreclosure and Estate Planning for Maryland on
Answered on Dec 28, 2018
Richard Sternberg's answer
Your facts are dripping in self-dealing and breach of fiduciary duties, and the claim that one trustee stole funds while the other stole the property are just oozing from your question. The notion that trust instructions give you the power to buy and sell does not mean that you can buy and sell to your own account. You *desperately* need to review the facts privately with a lawyer, and you are flat out nuts if you provide any more facts on an open web forum.

Q: My foreclosure auction was 4 days ago. I dont know if it sold. I have a tenant living there.

1 Answer | Asked in Foreclosure and Landlord - Tenant for Maryland on
Answered on Dec 7, 2018
Cedulie Renee Laumann's answer
As with many things legal "it depends." If the tenant is a "bona fide" tenant (not related to the owner who lost the house), they may get 90 days or they may get to ride out the current lease.

The rules for how long a tenant gets to stay under the terms of their pre-foreclosure lease differ depending on who bought at auction (for instance, if someone bought to occupy the property they can oust a tenant quicker than someone who bought the property as an investment). It also varies...

Q: 3 payments behind on my 1st and 2nd mort & received letter from 1st stating loan mod denied, now what do I do? on SSDI

2 Answers | Asked in Consumer Law, Bankruptcy, Foreclosure and Real Estate Law for Maryland on
Answered on Nov 14, 2018
Mark Oakley's answer
A deed in lieu of foreclosure simply means you hand over the keys and deed and move out, but you must first get in writing that the mortgage company releases you from personal liability on the remaining balance of the mortgage. You'll have to cut that deal with the first mortgage holder, and make release of your liability on both the first and second mortgage a condition of doing so. Otherwise, you get little or nothing out of the deal. Absent a loan mod, can you afford just paying the first...

Q: Is husband liable for a loan wife cosigned for her aunt?

1 Answer | Asked in Family Law, Foreclosure and Real Estate Law for Maryland on
Answered on Sep 18, 2018
Cedulie Renee Laumann's answer
Maryland does not shift debt to a spouse, so if a husband never signs any loan documents he should not be personally responsible for the debt of his wife.

Whether or not any assets are at risk will depend how they are titled.

While not legal advice, I hope that this helps.

Q: Can the estate administrator complete a deed in lieu of foreclosure? Is an appraisal required?

1 Answer | Asked in Estate Planning, Foreclosure and Real Estate Law for Maryland on
Answered on Aug 15, 2018
Cedulie Renee Laumann's answer
If there is little or no equity in estate owned property and the lender is willing to accept a deed-in-lieu of foreclosure, then yes, a Personal Representative has authority to sign such a deed. Whether or not a deed in lieu can be done depends on the willingness of a lender.

Note that if heirs are willing to take over the mortgage they may be able to instead assume the loan.

Please understand that the above offers general legal information and does not take into account any...

Q: Is it illegal to pursue a tax delinquent property owner for the sale of their house if the foreclosure wasn't filed?

1 Answer | Asked in Foreclosure, Real Estate Law and Tax Law for Maryland on
Answered on Jul 27, 2018
Cedulie Renee Laumann's answer
You essentially ask about tax sales. Each county has different dates and specific process for the sales/bidding, but in Maryland if the taxes are ~6 months or so past due, the county holds an auction. The county will advertise the auction in advance. The property owner can pay up the taxes, in which case it won't go to tax sale and the record owner will keep their ownership. If it does go to tax sale, an investor can bid on the property. The winning bidder receives a tax sale certificate....

Q: I will be relocating. My house has not sold. What are other options to avoid forclosure.

1 Answer | Asked in Real Estate Law and Foreclosure for Maryland on
Answered on May 14, 2018
Cedulie Renee Laumann's answer
A house only goes into foreclosure if the mortgage isn't paid. As long as the owner pays the mortgage, foreclosure should not be a concern, regardless of where the owner lives.

Practically, though, if an owner doesn't have enough money to pay the mortgage if they move elsewhere, two logical options involve selling the property to pay off the mortgage or renting it to generate income for the monthly mortgage payment. Property managers routinely manage rentals for out-of-state...

Q: My mother died with a reverse mortgage and deed her home to me and my brothers. Are we responsible for the mortgage?

3 Answers | Asked in Foreclosure and Real Estate Law for Maryland on
Answered on Feb 5, 2018
Richard Sternberg's answer
I thought I answered this a few hours ago. The law had not changed since 5:00 pm as far as I know.

Q: My mother died with a reverse mortgage and deed her home to me and my brothers. Are we responsible for the mortgage?

3 Answers | Asked in Foreclosure and Real Estate Law for Maryland on
Answered on Feb 5, 2018
Richard Sternberg's answer
I thought I answered this a few hours ago. The law had not changed since 5:00 pm as far as I know.

Q: I need to know if we are liable for my mother's mortgage.

1 Answer | Asked in Foreclosure for Maryland on
Answered on Sep 18, 2017
Cedulie Renee Laumann's answer
Generally speaking only the borrower(s) who signed is/are personally responsible for debt, although obviously the lienholder / mortgage company has rights to take back the property if the loan isn't paid. At times, however, relatives "assume" a mortgage, in which case they step in the shoes of the original borrower. If an estate has assets the estate can't disburse them to heirs without paying off the estate's legal debts (claims) first but generally heirs have no responsibility to pay a...

Q: I purchased a foreclosed home at auction. I found that someone lives there. How do I evict them?

1 Answer | Asked in Foreclosure and Landlord - Tenant for Maryland on
Answered on Apr 23, 2017
Brian Xavier Pendergraft's answer
You can still evict them. I would first attempt to evict "the owner and all occupants" using a forcible/entry and detainer action. If the person living on the property ends up being the former owner then congratulations! If the person living on the property is not the former owner, then they may have some defenses (tenants in foreclosure situations have certain notice requirements that may or may not have been met in your case but I don't know since I did not do the foreclosure), but they...

Q: Can a landlord collect rent on a property that is being foreclosed on???

1 Answer | Asked in Foreclosure and Landlord - Tenant for Maryland on
Answered on Jan 28, 2017
Cedulie Renee Laumann's answer
Yes, generally the owner of the property can continue to use the property or rent it out until it is sold at foreclosure. The law gives certain rights to a tenant under a bona fide lease - if the bank buys back the property a tenant may have the right to continuing living there and paying rent to the bank under the lease terms.

You may wish to contact the Maryland Hope Hotline which gives free advice on foreclosure related questions and may be able to connect you with a housing...

Q: can you sell your home before foreclosure as of dec 8th will start , have buyer for home was getting modification ?

1 Answer | Asked in Foreclosure for Maryland on
Answered on Oct 30, 2014
Thomas C. Valkenet's answer
Until the foreclosure sale, the owner can attempt to sell. Of course, the sale is subject tot he costs and expense of the mortgage. But it remains the best option for realizing full value. But since foreclosure cases are public records, many know that the auction sale will be less expensive.

Q: What’s the foreclosure process in the event of the death of the mortgagee?

1 Answer | Asked in Foreclosure for Maryland on
Answered on Sep 5, 2014
Thomas C. Valkenet's answer
The Personal Representative of the Estate stands in your father's shoes. If no estate was opened, it is likely the mortgage company will force the opening of the Estate. You would need to open the estate, anyway, in order to inherit his interest.

Q: How long do banks have to do a recordation after foreclosure in md

1 Answer | Asked in Foreclosure for Maryland on
Answered on May 31, 2012
Thomas C. Valkenet's answer
What do you mean by "recordation?" At some point, the Trustee that conducted the foreclosure may deed the property to either the bank or a third-party purchaser.

Q: Hi, Can you please explain who is a Substitute Trustee?

1 Answer | Asked in Foreclosure for Maryland on
Answered on Apr 23, 2012
Cedulie Renee Laumann's answer
When a mortgage or "Deed of Trust" gets filed, it lists the name of an attorney who acts as "Trustee," basically this person holds the rights to sell the property if the borrower doesn't pay. The right lasts for so long as the mortgage debt remains but the Trustee can be changed many times. When a foreclosure is filed, banks very frequently decide to use another attorney, hence they "substitute" trustees. The Substitute Trustee is then the person who puts up the property for sale.

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