Are deficiency judgments allowed in Maryland?

The rise in foreclosures has led many people to ask, “Are deficiency judgments permitted in Maryland?” The answer is—sometimes. However, several conditions must be met.

When Deficiency Judgments Are Permitted

The state of Maryland permits deficiency judgments under certain circumstances. To be eligible, the first requirement is that the foreclosed property must be sold at a public sale. The second requirement is that the property must be sold for less than the loan that existed for the mortgage before foreclosure. A third requirement is that the lender must file for the deficiency judgment within 3 years of the sale of the property.

Individuals should be careful how they handle the matter if a deficiency judgment is awarded. It is possible that they may find themselves subject to drastic collection attempts, such as the garnishment of their wages.

If you are facing foreclosure in Maryland or if your home has been foreclosed on and you believe your former lender is planning to seek a deficiency judgment, you should schedule a consultation with an experienced foreclosure attorney immediately.