Md. Code Ann., Real Prop. § 7-105.13

Redline — January 1, 2019 → current.View current text →

Current — January 1, 2020

As of January 1, 2019

(a) (1) In this section the following words have the meanings indicated.

(2) “Owner–occupied residential property” has the meaning stated in § 7–105.1 of this subtitle.

(3) “Residential property” has the meaning stated in § 7–105.1 of this subtitle.

(b) This section applies to residential property that was owner–occupied residential property at the time an order to docket or complaint to foreclose was filed.

(c) After the final ratification of the auditor’s report following a sale made in accordance with §§ 7–105.1 through 7–105.8 of this subtitle or the Maryland Rules, a secured party or an appropriate party in interest may file a motion for a deficiency judgment if the proceeds of the sale, after deducting all costs and expenses allowed by the court, are insufficient to satisfy the debt and accrued interest.

(d) A motion for deficiency judgment under this section shall be filed within 3 years after the final ratification of the auditor’s report.

(e) The secured party or party in interest shall serve the motion in accordance with the Maryland Rules.

(f) The filing of a motion for deficiency judgment in accordance with this section and the Maryland Rules shall constitute the sole post–ratification remedy available to a secured party or party in interest for breach of a covenant contained in a deed of trust, mortgage, or promissory note that secures or is secured by owner–occupied residential property.

(2) “Certificate of property unfit for human habitation” means:

(i) In Baltimore City, a certificate of substantial repair; or

(ii) A certificate for residential property issued by a unit of a county or municipal corporation indicating that the county or municipal corporation has determined that the residential property is unfit for human habitation.

(3) “Certificate of vacancy” means a certificate for a residential property issued by a unit of a county or municipal corporation indicating that the residential property is vacant.

(b) This section applies only to a county or municipal corporation that issues a certificate of vacancy or a certificate of property unfit for human habitation.

(c) If a mortgage or deed of trust on residential property is in default, a person with a secured interest in the residential property may request that a county or municipal corporation issue a certificate of vacancy or a certificate of property unfit for human habitation.

(d) (1) The county or municipal corporation shall issue to a secured party a certificate of vacancy for a residential property if the county or municipal corporation determines that the residential property is vacant.

(2) The county or municipal corporation shall issue to a secured party a certificate of property unfit for human habitation for a residential property if the county or municipal corporation determines in accordance with requirements of local, county, or State housing codes, that the residential property is unfit for human habitation.

(3) A certificate of vacancy or certificate of property unfit for human habitation issued under this subsection is valid for 60 days after the date the certificate is issued.

(4) A county or municipal corporation may charge a fee not exceeding $100 to a secured party to issue a certificate of vacancy or a certificate of property unfit for human habitation.

(e) Except as provided in subsection (f) of this section, if a certificate of vacancy or certificate of property unfit for human habitation is valid at the time of filing an order to docket or complaint to foreclose, § 7–105.1 of this subtitle does not apply to an action to foreclose a mortgage or deed of trust on the property for which the certificate was issued.

(f) (1) The record owner or occupant of a property may challenge the certificate of vacancy or certificate of property unfit for human habitation under this section by notifying the circuit court of the challenge.

(2) A secured party filing an order to docket or complaint to foreclose based on a certificate of vacancy or a certificate of property unfit for human habitation under this section shall serve the foreclosure documents in accordance with § 7–105.1(h)(1) of this subtitle along with a description of the procedure to challenge the certificate and the form to be used to make the challenge.

(3) If a challenge under paragraph (1) of this subsection is upheld, the secured party shall comply with the requirements of § 7–105.1 of this subtitle.

(g) A county or municipal corporation may establish procedures governing the issuance of a certificate of vacancy or certificate of property unfit for human habitation under this section.

Official source: Maryland General Assembly. Reproduced from public-domain Maryland statutes; confirm against the official source for the current text. Not legal advice.