Legal Alert
 
 
May 20, 2009

 

Emergency Legislation Effective Immediately - New Notice Requirements for Foreclosures on Maryland Residential Property

 

On May 19, 2009, Governor O'Malley signed emergency legislation affecting foreclosure actions on residential properties commenced on or after the May 19, 2009 effective date of the statute. This new legislation imposes three new notice requirements in addition to all other notice requirements of the Maryland Real Property Code and the Maryland Rules of Civil Procedure.
 
First, at the time a person files a residential property foreclosure action in court, that person must send a prescribed form of notice addressed to "All Occupants," which includes owners and tenants, at the address of the residential property.  This first notice alerts the occupants that a foreclosure action has been filed and the occupants face the possibility of eviction.  This notice also provides contact information of the person authorized to sell the property.
 
Once a sale date for the foreclosed property is established, the new statute requires that a subsequent "Notice of Impending Foreclosure Sale" must be sent to "All Occupants" at the address of the residential property no more that 30 and no less than 10 days prior to the scheduled foreclosure sale.  This prescribed notice must provide, among other information, the date, time and place of the foreclosure sale, and also warns the occupants regarding possible eviction. 
 
Finally, the new legislation also requires that a purchaser of residential property in a foreclosure sale must send a statutorily prescribed "Important Eviction Notice" to "All Occupants" at the address of the residential property.  This notice must be sent after the entry of a judgment awarding possession of the property but before any attempt to execute the writ of possession.  "Residential property" as used in the new legislation means real property improved by four or fewer single family dwelling units, which includes non-owner occupied dwellings held for investment or rental purposes.
 
In addition to sending the notices discussed above, each person giving the required notice must file an affidavit of compliance in the foreclosure proceeding after each notice is sent. 

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