A Maryland attorney is explaining the differences between a deed of trust foreclosure and a mortgage foreclosure to a client. Which of the following statements about Maryland foreclosure law is NOT accurate?
Correct Answer
B) A deed of trust foreclosure in Maryland always proceeds entirely outside of the court system with no judicial involvement
The statement that a deed of trust foreclosure in Maryland 'always proceeds entirely outside of the court system with no judicial involvement' is NOT accurate. While a Maryland deed of trust foreclosure is initiated non-judicially (the trustee can schedule and conduct the sale without first obtaining a court judgment), the sale must be ratified by a court after it is conducted. This post-sale court ratification is a mandatory step in Maryland that provides judicial oversight and allows parties to file exceptions to the sale. Therefore, Maryland's deed of trust foreclosure is not entirely outside the court system — it has a required judicial ratification phase.
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Related Topics & Key Terms
Key Terms:
Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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