§ 7-105.1. Sales upon default; foreclosure procedures
West's Annotated Code of MarylandReal PropertyEffective: October 1, 2019
Effective: October 1, 2019
MD Code, Real Property, § 7-105.1
§ 7-105.1. Sales upon default; foreclosure procedures
(4) “Foreclosure mediation” means a conference at which the parties in a foreclosure action, their attorneys, additional representatives of the parties, or a combination of those persons appear before an impartial individual to discuss the positions of the parties in an attempt to reach agreement on a loss mitigation program for the mortgagor or grantor.
(b)(1) Except as provided in paragraph (2) of this subsection, an action to foreclose a mortgage or deed of trust on residential property may not be filed until the later of:
(b-1)(1) This subsection applies only to an action for the foreclosure of a mortgage or deed of trust on an owner-occupied residential property.
(c)(1) Except as provided in subsection (b)(2)(iii) of this section, at least 45 days before the filing of an action to foreclose a mortgage or deed of trust on residential property, the secured party shall send a written notice of intent to foreclose to the mortgagor or grantor and the record owner.
(d)(1) For owner-occupied residential property, a secured party may offer to participate in prefile mediation with a mortgagor or grantor to whom the secured party has delivered a notice of intent to foreclose.
(3) If a mortgagor or grantor elects to participate in prefile mediation, the mortgagor or grantor shall notify the secured party by submitting the application described in subsection (c)(5)(vi) of this section not more than 25 days after the date on which the notice of intent to foreclose is mailed by the secured party.
(5) If a mortgagor or grantor submits an application to participate in prefile mediation to the secured party in accordance with paragraph (3) of this subsection, the secured party shall notify the Office of Administrative Hearings not more than 5 business days after the date on which the secured party receives the application.
(18) To the extent that a notice of intent to foreclose complies with this section and otherwise is valid under the law, a notice of intent to foreclose issued with respect to a property that has been the subject of prefile mediation continues to be valid for 1 year after the date on which the initial prefile mediation agreement is executed by the parties.
(e) An order to docket or a complaint to foreclose a mortgage or deed of trust on residential property shall:
(f) Notwithstanding any other law, the court may not accept a lost note affidavit in lieu of a copy of the debt instrument required under subsection (e)(2)(iii) of this section, unless the affidavit:
(g) Only for purposes of a final loss mitigation affidavit that is filed with an order to docket or complaint to foreclose, a loss mitigation analysis is not considered complete if the reason for the denial or determination of ineligibility is due to the inability of the secured party to:
(h)(1) A copy of the order to docket or complaint to foreclose on residential property and all other papers filed with it in the form and sequence as prescribed by regulations adopted by the Commissioner of Financial Regulation, accompanied by the documents required under paragraphs (2), (3), and (4) of this subsection, shall be served on the mortgagor or grantor by:
(3) If the order to docket or complaint to foreclose is accompanied by a preliminary loss mitigation affidavit, the service of documents under paragraph (1) of this subsection shall be accompanied by a loss mitigation application form and any other supporting documents as prescribed by regulation adopted by the Commissioner of Financial Regulation.
(4)(i) Except as provided in subparagraph (ii) of this paragraph, if the order to docket or complaint to foreclose is accompanied by a final loss mitigation affidavit and concerns owner-occupied residential property, the service of documents under paragraph (1) of this subsection shall be accompanied by a request for postfile mediation form and any other supporting documents as prescribed by regulation adopted by the Commissioner of Financial Regulation.
(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
(i)(1) If the order to docket or complaint to foreclose is accompanied by a preliminary loss mitigation affidavit, the secured party, at least 30 days before the date of a foreclosure sale, shall:
(j)(1)(i) This paragraph applies to a mortgagor or grantor who:
(k)(1) Within 5 days after receipt of a request for postfile mediation, the court shall transmit the request to the Office of Administrative Hearings for scheduling.
(l)(1)(i) By regulation, the Commissioner of Financial Regulation shall establish a mediation checklist that describes the matters that shall be reviewed and considered in a postfile mediation.
(m)(1) If the parties do not reach an agreement at the postfile mediation, or the 60-day mediation period expires without an extension granted by the Office of Administrative Hearings, the foreclosure attorney may schedule the foreclosure sale.
(n) A foreclosure sale of residential property may not occur until:
(n-1)(1) If a certified community development financial institution makes an offer to a secured party to purchase owner-occupied residential property for the purpose of transferring the property to the immediately preceding mortgagor or grantor, no person may require, as a condition of a sale or transfer of the property to the certified community development financial institution, any affidavit, statement, agreement, or addendum that limits ownership or occupancy of the property by the immediately preceding mortgagor or grantor.
(o) Notice of the time, place, and terms of a foreclosure sale shall be published in a newspaper of general circulation in the county where the action is pending at least once a week for 3 successive weeks, the first publication to be not less than 15 days before the sale and the last publication to be not more than 1 week before the sale.
(p)(1) The mortgagor or grantor of residential property has 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.
(q) An action for failure to comply with the provisions of this section shall be brought within 3 years after the date of the order ratifying the sale.
(r) Revenue collected from the filing fees required under subsections (e)(2)(ix) and (j)(1)(iii) of this section shall be distributed to the Housing Counseling and Foreclosure Mediation Fund established under § 4-507 of the Housing and Community Development Article.
Credits
Added by Acts 2008, c. 1, § 1, eff. April 3, 2008; Acts 2008, c. 2, § 1, eff. April 3, 2008. Amended by Acts 2008, c. 36, § 6, eff. April 8, 2008; Acts 2009, c. 149, § 1, eff. July 1, 2009; Acts 2009, c. 691, § 1, eff. Oct. 1, 2009; Acts 2009, c. 692, § 1, eff. June 1, 2009; Acts 2010, c. 485, § 1, eff. July 1, 2010; Acts 2011, c. 36, § 1, eff. July 1, 2011; Acts 2011, c. 37, § 1, eff. July 1, 2011; Acts 2011, c. 65, § 1, eff. April 12, 2011; Acts 2011, c. 245, § 1, eff. July 1, 2011; Acts 2011, c. 246, § 1, eff. July 1, 2011; Acts 2011, c. 355, § 1, eff. June 1, 2011; Acts 2011, c. 477, § 1, eff. July 1, 2011; Acts 2011, c. 478, § 1, eff. July 1, 2011; Acts 2012, c. 156, § 1, eff. Oct. 1, 2012; Acts 2014, c. 233, § 1, eff. April 14, 2014; Acts 2015, c. 22, § 1, eff. April 14, 2015; Acts 2017, c. 617, § 1, eff. Oct. 1, 2017; Acts 2019, c. 93, § 2, eff. Oct. 1, 2019; Acts 2019, c. 522, § 1, eff. May 13, 2019.
MD Code, Real Property, § 7-105.1, MD REAL PROP § 7-105.1
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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