US Laws, Codes, Statutes & Cases

      (a)      A provision may be inserted in a mortgage or deed of trust authorizing any natural person named in the instrument, including the secured party, to sell the property or declaring the borrower's assent to the passing of a decree for the sale of the property, on default in a condition on which the mortgage or deed of trust provides that a sale may be made. A sale made pursuant to this section or to the Maryland Rules, after 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 between the proper parties in relation to the mortgage or deed of trust and in the usual course of the court, and operates to pass all the title which the borrower had in the property at the time of the recording of the mortgage or deed of trust.

      (a-1)      (1)      In this subsection, "record owner" means the person holding record title to residential real property as of the date on which an action to foreclose the mortgage or deed of trust is filed.

            (2)      In addition to any notice required to be given by provisions of the Annotated Code of Maryland or the Maryland Rules, the person authorized to make a sale in an action to foreclose a mortgage or deed of trust shall give written notice of the action to the record owner of the property to be sold.

            (3)      (i)      The written notice shall be sent no later than 2 days after the action to foreclose is docketed:

                        1.      By certified mail, postage prepaid, return receipt requested, bearing a postmark from the United States Postal Service, to the record owner; and

                        2.      By first-class mail.

                  (ii)      The notice shall state that an action to foreclose the mortgage or deed of trust may be or has been docketed and that a foreclosure sale of the property will be held.

                  (iii)      The notice shall contain the following statement printed in at least 14 point boldface type:

"NOTICE REQUIRED BY MARYLAND LAW

      Mortgage foreclosure is a complex process. Some people may approach you about "saving" your home. You should be careful about any such promises.

      The State encourages you to become informed about your options in foreclosure before entering into any agreements with anyone in connection with the foreclosure of your home. There are government agencies and nonprofit organizations that you may contact for helpful information about the foreclosure process. For the name and telephone number of an organization near you, please call the Consumer Protection Division of the Office of the Attorney General of Maryland at 1-888-743-0023. The State does not guarantee the advice of these organizations.

      Do not delay dealing with the foreclosure because your options may become more limited as time passes.".

      (b)      (1)      (i)      In this subsection, "record owner" means the person holding record title to property as of the later of:

                        1.      30 days before the day on which a foreclosure sale of the property is actually held; and

                        2.      The date on which an action to foreclose the mortgage or deed of trust is filed.

                  (ii)      In addition to any notice required to be given by provisions of the Annotated Code of Maryland or the Maryland Rules, the person authorized to make a sale in an action to foreclose a mortgage or deed of trust shall give written notice of the proposed sale to the record owner of the property to be sold.

            (2)      (i)      The written notice shall be sent:

                        1.      By certified mail, postage prepaid, return receipt requested, bearing a postmark from the United States Postal Service, to the record owner; and

                        2.      By first-class mail.

                  (ii)      The notice shall state the time, place, and terms of the sale and shall be sent not earlier than 30 days and not later than 10 days before the date of sale.

                  (iii)      The person giving the notice shall file in the proceedings:

                        1.      A return receipt; or

                        2.      An affidavit that:

                        A.      The provisions of this paragraph have been complied with; or

                        B.      The address of the record owner is not reasonably ascertainable.

                  (iv)      The person authorized to make a sale in an action to foreclose a mortgage or deed of trust is not required to give notice to a record owner whose address is not reasonably ascertainable.

            (3)      In the event of postponement of sale, which may be done in the discretion of the trustee, no new or additional notice need be given pursuant to this section.

            (4)      The right of a record owner to file an action for the failure of the person authorized to make a sale in an action to foreclose a mortgage or deed of trust to comply with the provisions of this subsection shall expire 3 years after the date of the order ratifying the foreclosure sale.

      (c)      (1)      In this subsection, "holder of a subordinate interest" includes any condominium council of unit owners or homeowners association that has filed a request for notice of sale under paragraph (3) of this subsection.

            (2)      The person authorized to make a sale in an action to foreclose a mortgage or deed of trust shall give written notice of any proposed foreclosure sale to the holder of any subordinate mortgage, deed of trust, or other subordinate interest, including a judgment, in accordance with subsection (b) of this section and the requirements of Maryland Rule 14-206.

            (3)      (i)      The land records office of each county shall maintain a current listing of recorded requests for notice of sale by holders of subordinate mortgages, deeds of trust, or other subordinate interests. The holder of a subordinate mortgage, deed of trust, or other subordinate interest may file a request for notice under this paragraph.

                  (ii)      Each request for notice of sale shall:

                        1.      Be recorded in a separate docket or book which shall be indexed under the name of the holder of the superior mortgage or deed of trust and under the book and page numbers where the superior mortgage or deed of trust is recorded;

                        2.      Identify the property in which the subordinate interest is held;

                        3.      State the name and address of the holder of the subordinate interest; and

                        4.      Identify the superior mortgage or deed of trust by stating:

                        A.      The names of the original parties to the superior mortgage or deed of trust;

                        B.      The date the superior mortgage or deed of trust was recorded; and

                        C.      The office, docket or book, and page where the superior mortgage or deed of trust is recorded.

                  (iii)      1.      Except as provided in sub-subparagraph 2 of this subparagraph, failure of a holder of a subordinate mortgage, deed of trust, or other subordinate interest to record a request for notice under this paragraph does not affect the duty of a holder of a superior interest to provide notice as required under this subsection.

                        2.      A holder of a superior interest does not have a duty to provide notice to a condominium council of unit owners or homeowners association that has not filed a request for notice under this paragraph.

            (4)      The person giving notice under this subsection shall file in the action:

                  (i)      The return receipt from the notice; or

                  (ii)      An affidavit that:

                        1.      The notice provisions of this subsection have been complied with; or

                        2.      The address of the holder of the subordinate interest is not reasonably ascertainable.

            (5)      The person authorized to make a sale in an action to foreclose a mortgage or deed of trust is not required to give notice to the holder of a subordinate mortgage, deed of trust, or other subordinate interest if:

                  (i)      The existence of the mortgage, deed of trust, or other subordinate interest is not reasonably ascertainable;

                  (ii)      The identity or address of the holder of the mortgage, deed of trust, or other subordinate interest is not reasonably ascertainable;

                  (iii)      With respect to a recorded or filed subordinate mortgage, deed of trust, or other recorded or filed subordinate interest, the recordation or filing occurred after the later of:

                        1.      30 days before the day on which the foreclosure sale was actually held; and

                        2.      The date the action to foreclose the mortgage or deed of trust was filed;

                  (iv)      With respect to an unrecorded or unfiled subordinate mortgage, deed of trust, or other unrecorded or unfiled subordinate interest, the subordinate interest was created after the later of:

                        1.      30 days before the day on which the foreclosure sale was actually held; and

                        2.      The date the action to foreclose the mortgage or deed of trust was filed; or

                  (v)      With respect to a condominium council of unit owners or homeowners association, the condominium council of unit owners or homeowners association has not filed a request for notice under paragraph (3) of this subsection.

            (6)      The right of a holder of a subordinate mortgage, deed of trust, or other subordinate interest to file an action for the failure of the person authorized to make a sale in an action to foreclose a mortgage or deed of trust to comply with the provisions of this subsection shall expire 3 years after the date of the order ratifying the foreclosure sale.

      (d)      (1)      Absent a provision to the contrary in a mortgage or note secured by a deed of trust, in the enumerated counties, the interest provided in a mortgage or note secured by a deed of trust is payable for the time period provided in paragraph (2) of this subsection or until the audit of the sale is ratified, whichever occurs first.

            (2)      Under paragraph (1) of this subsection, the time period following sale is:

                  (i)      60 days in Calvert, Cecil, Frederick, Kent, Queen Anne's, Talbot, Caroline, Charles, and St. Mary's counties; and

                  (ii)      180 days in Worcester County.

      (e)      No title to property acquired at sale of property subject to a mortgage or deed of trust is invalid by reason of the fact that the property was purchased by the secured party, his assignee, or representative, or for his account.

      (f)      (1)      Any purchaser at a foreclosure sale of a mortgage or deed of trust has the same rights and remedies against the tenants of the mortgagor or grantor as the mortgagor or grantor had, and the tenants have the same rights and remedies against the purchaser as they would have had against the mortgagor or grantor on the date the mortgage or deed of trust was recorded.

            (2)      If the required advertisement of sale so discloses, a foreclosure sale shall be made subject to one or more of the tenancies entered into subsequent to the recording of the mortgage or deed of trust or otherwise subordinated thereto. Any lease so continuing is unaffected by the sale, except the purchaser shall become the landlord, as of the date of the sale, on ratification of the sale.

      (g)      (1)      Except as provided in this subsection, unless the mortgage or deed of trust provides otherwise, if any property is encumbered by a mortgage or deed of trust, annual crops planted or cultivated by any debtor or those claiming under him do not pass with the property at any sale under or by virtue of the mortgage or deed of trust, but the crops remain the property of the debtor or those claiming under him.

            (2)      Notwithstanding the provisions of paragraph (1) of this subsection, after the sale, the debtor or those claiming under him and the purchaser or those claiming under him may agree on a reasonable rental of the part of the property occupied by the crops. This rental is a lien on the crops and continues until paid in favor of the purchaser or those claiming under him, and neither the crops nor any part of them may be removed until after payment. If the parties are unable to agree on the rental, any party in interest may apply to the court having jurisdiction over the sale or the confirmation of it for the appointment of disinterested appraisers to determine the rental, whose award shall be final.

            (3)      In addition to any other remedy, the purchaser or those claiming under him, on ascertainment of the rent, may distrain for the rent or any part of it remaining due, as in the case of landlord and tenant. No provision of this section is intended to interfere with the right of the purchaser or those claiming under him to have possession of the property, except as to the part occupied by the crop, with necessary ingress or egress.

      (h)      The entry of an order for resale on default by a purchaser at a sale under this section and Title 14 of the Maryland Rules:

            (1)      Does not affect the prior ratification of the sale and does not restore to the mortgagor or former record owner any right or remedy that was extinguished by the prior sale and its ratification; and

            (2)      Extinguishes all interest of the defaulting purchaser in the real property being foreclosed and in the proceeds of the resale.