advisory (Word document, 67KB,
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This advisory is intended to provide guidance on recent changes made to the mortgage foreclosure process in Maryland.
- Regulations Governing the Foreclosure Process - COMAR 09.03.12.01 - .12
- Approval of New Emergency Regulations - The Joint Committee on Administrative,
Executive and Legislative Review (AELR) of the Maryland General Assembly has approved
emergency regulations that will replace and supersede the emergency regulations which
were due to expire on January 15, 2013. The new emergency regulations include updates
based on comments received during the public notice and comment period on foreclosure
regulations that were proposed and published in the Maryland Register in October, 2011.
The new emergency regulations also address changes to the law made by Chapter 156 of the
Acts of 2012. A copy of the new emergency
regulations is available online. The new emergency regulations are expected to be
published in the Maryland Register in October 2012 and go into effect on October 1, 2012.
- Concurrent Proposed Regulations - The new emergency regulations
are identical to proposed regulations that will be published for public notice
and comment in the Maryland Register in October 2012.
- Foreclosed Property Registry
- Chapter 155 of the Acts of 2012, which created the Foreclosed Property Registry,
endorses one of the primary recommendations of the Maryland Foreclosure Task Force convened
by Governor Martin O'Malley in 2011. The Task Force identified that an extended period of
time (estimated to range from nine to 18 months) frequently occurs between the date of a
foreclosure sale and the date a deed transferring title to the property is recorded. During
this "limbo period," local governments have difficulty identifying the appropriate person
to address issues such as security and maintenance that may arise with the property.
Accordingly, the Task Force recommended the creation of a simple-to-use central resource
by which State and local governments have timely access to contact information for reaching
the purchasers of foreclosed properties after the auction.
- The online
Foreclosed Property Registry will become available on October 1, 2012.
- Sales of foreclosed properties that occur on or after October 1, 2012 will be
subject to registration.
- The Foreclosure Purchaser Instructions
are available online (Word document, 28KB,
download Word viewer for free).
- Maryland's Office of the Commissioner of Financial Regulation will provide training
from October 1, 2012 to January 1, 2013 to assist users of the Registry.
- Expedited Foreclosure of Vacant or Uninhabitable Properties
- Chapter 156 of the Acts of 2012 provides that a secured party may foreclose on an
expedited basis against property for which a certificate of vacancy or certificate of
property unfit for human habitation has been issued by a local jurisdiction. Local
jurisdictions may issue the certificates to secured parties and charge up to $100 per
certificate. A jurisdiction may issue a certificate only after it determines, in
accordance with State, local or county housing codes, that the property is vacant
or unfit for human habitation. The certificate is valid for 60 days after the date
on which it was issued. During the time a certificate for a property is valid,
the secured party may pursue foreclosure against the property without being
subject to the notices, timing or mediation requirements imposed before the filing
of the order to docket or complaint to foreclose.
- Chapter 156 also required the Commissioner of Financial Regulation to develop a
description of the procedure to challenge a certificate of vacancy or certificate
of property unfit for human habitation and the form to be used to make the challenge.
The Office of the Commissioner has consulted with the Standing Committee on Rules of
Practice and Procedure. The Committee is in the process of developing the procedure
and form to challenge a certificate. When available, the Office of the Commissioner
will publish a description of the procedures and post the appropriate forms.