A lender in Baltimore City holds a traditional mortgage (not a deed of trust) on a residential property where the borrower has defaulted. Which statement best describes the foreclosure process available to this lender under Maryland law?
Correct Answer
B) The lender must pursue judicial foreclosure through the circuit court, which is slower than a trustee's sale
When the security instrument is a traditional mortgage (not a deed of trust), Maryland lenders must pursue judicial foreclosure through the circuit court. This process requires filing a lawsuit, serving the borrower, obtaining a court judgment, and having the property sold under court supervision. It is significantly slower and more expensive than the non-judicial trustee's sale available under a deed of trust, which is why deeds of trust are the preferred instrument in Maryland.
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