Maryland at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Maryland foreclosures are supervised by the circuit court. A lender usually sells under a power of sale or an assent to a decree in the mortgage or deed of trust, but it must first file a foreclosure action in circuit court, and the sale is not final until the court ratifies it. Md. Code, Real Prop. §7-105(b)-(c); §7-105.1(b)(1); Md. Rule 14-305(f) Show the source textafter final ratification by the court and grant of the property to the purchaser on payment of the purchase money, has the same effect as if the sale and grant were made under decree |
| Who holds foreclosure surplus | After the circuit court ratifies the sale, a court auditor states an account of the sale proceeds (an audit is mandatory). Anyone claiming an interest in the property or in the proceeds may file an application with the court to be paid from the surplus, the court orders the surplus distributed equitably among the claimants, and the trustee who made the sale distributes the surplus according to the court-approved audit. Md. Rule 14-216(a); Md. Rule 14-215(a); Md. Rule 14-305(g); Md. Code, Real Prop. §7-315(b)(3) Show the source textany person claiming an interest in the property or in the proceeds of the sale of the property may file an application for the payment of that person's claim from the surplus proceeds of the sale |
| Claim window for foreclosure surplus | An application to be paid from the surplus may be filed with the circuit court at any time after the sale and before the court finally ratifies the auditor's account. Rule 14-216 does not say what happens to surplus that nobody claims. Md. Rule 14-216(a) Show the source textAt any time after a sale of property and before final ratification of the auditor's account |
| Tax sale excess proceeds | Maryland is a tax lien certificate state: the county collector sells the property at tax sale and gives the buyer a certificate of sale, and the owner may redeem until a court finally forecloses the right of redemption. Any balance of the purchase price above the taxes, interest, penalties and costs of sale is paid by the collector to the person entitled to it. Each county must have a uniform claim process that needs no court order unless there is a dispute, and the collector must tell the prior owner of record about the balance and the claim process within 90 days after delivering the deed. Section 14-818 does not state a deadline to claim the balance. Md. Code, Tax-Prop. §14-818(a)(4)-(6); §14-820(a); §14-827; §14-833(a) Show the source textAny balance over the amount required for the payment of taxes, interest, penalties, and costs of sale shall be paid by the collector to: (i) the person entitled to the balance |
| Redemption after the sale | The Maryland statutes read for this file give a homeowner a right to cure the default and reinstate the loan up to one business day before the foreclosure sale. No statute giving a former owner a right to redeem after a mortgage foreclosure sale was found; once the court finally ratifies the sale and the purchaser pays, the sale passes the borrower's title to the purchaser. Md. Code, Real Prop. §7-105.1(p)(1); §7-105(c) Show the source texthas the right to cure the default by paying all past due payments, penalties, and fees and reinstate the loan at any time up to 1 business day before the foreclosure sale occurs |
| Rules for recovery companies | Maryland's Protection of Homeowners in Foreclosure Act regulates any transfer, sale or assignment of the surplus due a homeowner in a foreclosure (a foreclosure surplus acquisition). The deal must be a written contract in at least 12 point type, signed by the homeowner and the purchaser before the statement of account is referred to the auditor, with a required notice and an attached Notice of Rescission, and the homeowner may rescind within 10 days after the auditor states the account. A violation is a misdemeanor and an unfair or deceptive trade practice, and a waiver of the homeowner's rights is void. The Act does not apply to an individual admitted to practice law in Maryland while performing an activity related to the regular practice of law in Maryland. Separately, any agreement to pay compensation to recover property from the State's abandoned property office is unenforceable if made within 24 months after the property was paid or delivered to that office. Neither statute sets a percentage fee cap. Md. Code, Real Prop. §7-301(g)-(h), §7-302(a)(1), §7-314, §7-315, §7-318, §7-319(d), §7-321; Md. Code, Com. Law §17-325 Show the source textEach foreclosure surplus acquisition shall be in the form of a written contract. |
How surplus funds arise in Maryland
When a home in Maryland is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Maryland
We confirm the sale figures in the public record, identify which office in Maryland is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Maryland that program is the Comptroller of Maryland, Unclaimed Property Division.
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Maryland law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Maryland
Maryland regulates this kind of service. Maryland's Protection of Homeowners in Foreclosure Act regulates any transfer, sale or assignment of the surplus due a homeowner in a foreclosure (a foreclosure surplus acquisition). The deal must be a written contract in at least 12 point type, signed by the homeowner and the purchaser before the statement of account is referred to the auditor, with a required notice and an attached Notice of Rescission, and the homeowner may rescind within 10 days after the auditor states the account. A violation is a misdemeanor and an unfair or deceptive trade practice, and a waiver of the homeowner's rights is void. The Act does not apply to an individual admitted to practice law in Maryland while performing an activity related to the regular practice of law in Maryland. Separately, any agreement to pay compensation to recover property from the State's abandoned property office is unenforceable if made within 24 months after the property was paid or delivered to that office. Neither statute sets a percentage fee cap. (Md. Code, Real Prop. §7-301(g)-(h), §7-302(a)(1), §7-314, §7-315, §7-318, §7-319(d), §7-321; Md. Code, Com. Law §17-325)
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Maryland
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Maryland, from locating the funds to filing the claim.
After the circuit court ratifies the sale, a court auditor states an account of the sale proceeds (an audit is mandatory). Anyone claiming an interest in the property or in the proceeds may file an application with the court to be paid from the surplus, the court orders the surplus distributed equitably among the claimants, and the trustee who made the sale distributes the surplus according to the court-approved audit.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.