Md. Code Ann., Real Prop. § 7-105.14

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

Current — January 1, 2024

As of January 1, 2019

(a) In this section, “residential property” has the meaning stated in § 7–105.1 of this subtitle.

(b) (1) A secured party may petition the circuit court for leave to immediately commence an action to foreclose a mortgage or deed of trust on residential property on the basis that the property is vacant and abandoned as provided in this section.

(2) On filing a petition under this section, the secured party shall send a copy of the petition to the mortgagor’s or grantor’s last known address and the record owner of the property by certified mail, return receipt requested, and first–class mail.

(3) The circuit court shall rule on the petition promptly after the petition is filed.

(c) A residential property is vacant and abandoned under this section if all of the following criteria apply to the property:

(1) The court finds that the mortgage or deed of trust on the residential property has been in default for 120 days or more in a condition on which the mortgage or deed of trust provides that a sale may be made;

(2) The court finds that at least three of the circumstances listed in subsection (d) of this section are true as to the property;

(3) No mortgagor or grantor has filed with the court an answer or objection setting forth a defense or objection that, if proven, would preclude the entry of a final judgment and a decree of foreclosure; and

(4) No mortgagor or grantor has filed with the court a written statement that the property is not vacant and abandoned.

(d) The circumstances of a residential property that a court may find are true under subsection (c)(2) of this section are:

(1) Gas, electric, sewer, or water utility services to the property have been disconnected;

(2) Windows or entrances to the structure on the property are boarded up or closed off, or multiple window panes are broken and unrepaired;

(3) Doors to the structure on the property are smashed through, broken off, unhinged, or continuously unlocked;

(4) Junk, litter, trash, debris, or hazardous, noxious, or unhealthy substances or materials have accumulated on the property;

(5) Furnishings, window treatments, or personal items are absent from the structure on the property;

(6) The property is the object of vandalism, loitering, or criminal conduct, or there has been physical destruction or deterioration of the property;

(7) A mortgagor or grantor has made a written statement expressing the intention of all mortgagors or grantors to abandon the property;

(8) There is a determination that no owner or tenant appears to be residing on the property at the time of an inspection of the property by the secured party;

(9) Two or more citations have been issued by a county or municipal corporation against the property for failure to maintain the property and a health and safety issue exists that has not been rectified;

(10) The property has been condemned by a county or municipal corporation; or

(11) Other reasonable indicia of abandonment exist.

(e) (1) If the court finds that a residential property is vacant and abandoned and the secured party filing a petition for leave to file an action for immediate foreclosure is entitled to judgment, the court shall grant the petition.

(2) Except as provided under subsection (f) of this section, if the court grants the petition under paragraph (1) of this subsection, § 7–105.1 of this subtitle does not apply to an action to foreclose a mortgage or deed of trust on the residential property that is found to be vacant and abandoned.

(f) (1) A secured party filing an order to docket or complaint to foreclose based on a petition granted by a court under subsection (e)(1) of this section shall serve the foreclosure documents, accompanied by the document required under paragraph (4) of this subsection, by:

(i) Personal delivery of the papers to the mortgagor or grantor; or

(ii) Leaving the papers with a resident of suitable age and discretion at the mortgagor’s or grantor’s dwelling house or usual place of abode.

(2) If at least two good faith efforts on different days to serve the mortgagor or grantor under paragraph (1) of this subsection have not succeeded, the secured party may effect service by:

(i) Filing an affidavit with the court describing the good faith efforts to serve the mortgagor or grantor; and

(ii) 1. Mailing a copy of all the documents required to be served under paragraph (1) of this subsection by certified mail, return receipt requested, and first–class mail to the mortgagor’s or grantor’s last known address and, if different, to the address of the residential property subject to the mortgage or deed of trust; and

2. Posting a copy of all the documents required to be served under paragraph (1) of this subsection in a conspicuous place on the residential property subject to the mortgage or deed of trust.

(3) The individual making service of documents under this subsection shall file proof of service with the court in accordance with the Maryland Rules.

(4) The service of documents under paragraph (1) of this subsection shall be accompanied by a separate, clearly marked notice, in the form prescribed by regulations adopted by the Commissioner of Financial Regulation, that states:

(i) The significance of the order to docket or complaint to foreclose; and

(ii) The right of a record owner or occupant of the property to challenge the finding that the residential property is vacant and abandoned.

(5) (i) A challenge to the finding that the residential property is vacant and abandoned shall be filed with the court in the foreclosure proceeding not later than 20 days after service is made under this subsection.

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

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

(2) “Foreclosed Property Registry” means the Foreclosed Property Registry established by the Commissioner of Financial Regulation under subsection (b) of this section.

(3) “Foreclosure purchaser” means the person identified as the purchaser on the report of sale required by Maryland Rule 14–305 for a foreclosure sale of residential property.

(4) “Fund” means the Foreclosed Property Registry Fund established by the Commissioner of Financial Regulation under subsection (i) of this section.

(5) “Local jurisdiction” means:

(i) A county; or

(ii) A municipal corporation.

(6) “Residential property” means real property improved by four or fewer dwelling units that are designed principally and are intended for human habitation.

(b) The Commissioner of Financial Regulation shall establish and maintain an Internet–based Foreclosed Property Registry for information relating to foreclosure sales of residential property.

(c) At the time of a foreclosure sale of residential property, the person responsible for conducting the foreclosure shall obtain from the foreclosure purchaser a written acknowledgment of the requirements of this section.

(d) (1) Within 30 days after a foreclosure sale of residential property, a foreclosure purchaser shall submit an initial registration to the Foreclosed Property Registry.

(2) The initial registration shall:

(i) Be in the form the Commissioner of Financial Regulation requires; and

(ii) Contain the following information:

1. The name, telephone number, and address of the foreclosure purchaser;

2. The street address of the property that is the subject of the foreclosure sale;

3. The date of the foreclosure sale;

4. Whether the property is a single–family or multifamily property;

5. The name and address of the person, including a substitute purchaser, who is authorized to accept legal service for the foreclosure purchaser;

6. To the best of the foreclosure purchaser’s knowledge at the time of registration:

A. Whether the residential property is vacant; and

B. The name, telephone number, and street address of the person who is responsible for the maintenance of the property; and

7. Whether the foreclosure purchaser has possession of the property.

(3) Within 30 days after a deed transferring title to the residential property has been recorded, the foreclosure purchaser shall submit a final registration to the Foreclosed Property Registry.

(4) The final registration shall:

(i) Be in the form the Commissioner of Financial Regulation requires; and

(ii) Contain the following information as of the date of final registration:

1. The name, telephone number, and address of the owner on the deed;

2. The date of the ratification of the sale; and

3. The date the deed was recorded.

(5) The Commissioner of Financial Regulation shall establish procedures that require a foreclosure purchaser, after submitting an initial registration, to submit to the Foreclosed Property Registry any change to the information required under paragraph (2)(ii)5 through 7 of this subsection within 21 business days after the change is known to the purchaser.

(6) On receipt through the Foreclosed Property Registry of an initial registration or any change submitted under paragraph (5) of this subsection, the Commissioner of Financial Regulation shall promptly notify, by electronic means, authorized users from the county and, if appropriate, the municipal corporation in which the property is located.

(e) (1) The filing fees for registering a residential property are:

(i) $50 for an initial registration filed within the time period required under subsection (d)(1) of this section; and

(ii) $100 for an initial registration filed after the time period required under subsection (d)(1) of this section.

(2) There is no fee for a final registration.

(3) A filing fee paid under paragraph (1) of this subsection is nonrefundable.

(4) A local jurisdiction may enact a local law that imposes a civil penalty for failure to register under this section in an amount not exceeding $1,000.

(f) (1) Subject to paragraph (2) of this subsection, a local jurisdiction that, in accordance with any applicable building code or local ordinance, abates a nuisance on a residential property registered under this section or takes action to maintain a residential property registered under this section may collect the cost associated with the abatement or other action as a charge included on the residential property’s property tax bill.

(2) (i) The cost associated with an abatement or other action taken under paragraph (1) of this subsection may not be included as a charge on the residential property’s property tax bill unless the local jurisdiction provides advance written notice in accordance with subparagraph (ii) of this paragraph to:

1. The person identified in the registry who is authorized to accept legal service for the foreclosure purchaser; and

2. The person identified in the registry who is responsible for the maintenance of the property.

(ii) The notice described in subparagraph (i) of this paragraph shall:

1. Describe the intended abatement or other action the local jurisdiction intends to take; and

2. Be provided:

A. In accordance with the notice provisions of the applicable building code or local ordinance; or

B. If the applicable building code or local ordinance does not provide for notice, at least 30 days before the local jurisdiction abates the nuisance or takes action to maintain the property.

(g) (1) The Foreclosed Property Registry:

(i) Is not a public record as defined by § 4–101 of the General Provisions Article; and

(ii) Is not subject to Title 4 of the General Provisions Article.

(2) The Commissioner of Financial Regulation may authorize access to the Foreclosed Property Registry only to local jurisdictions, their agencies, and representatives and State agencies.

(3) Notwithstanding paragraphs (1) and (2) of this subsection, the Commissioner of Financial Regulation or a local jurisdiction may provide information for a specific property in the Foreclosed Property Registry to:

(i) A person who owns property on the same block; or

(ii) A homeowners association or condominium in which the property is located.

(h) Revenue collected from the filing fees required under subsection (e)(1) of this section shall be distributed to the Fund.

(i) (1) There is a Foreclosed Property Registry Fund in the Office of Financial Regulation.

(2) The purpose of the Fund is to support the development, administration, and maintenance of the Foreclosed Property Registry established under this section.

(3) The Commissioner of Financial Regulation shall administer the Fund.

(4) (i) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.

(ii) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(5) The Fund consists of:

(i) Revenue distributed to the Fund under subsection (h) of this section;

(ii) Investment earnings of the Fund;

(iii) Money appropriated in the State budget to the Fund; and

(iv) Any other money from any other source accepted for the benefit of the Fund.

(6) (i) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

(ii) Any investment earnings of the Fund shall be paid into the Fund.

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