Changes to Maryland Residential Foreclosure Requirements

Recent amendments to Maryland foreclosure regulations found at COMAR 09.03.12 establish new requirements for residential foreclosures including, among other things, a specific expiration for the notice of intent to foreclose (“NOI”).  The NOI is required to be sent to borrowers at least 45 days before filing an action to foreclose on residential property under Maryland Real Property Code, § 7-105.1.  While existing law provides that that the NOI is valid for 1 year after the date the parties execute an initial pre-file mediation agreement such as a loan modification, it does not otherwise specify circumstances when the NOI expires and a new NOI must be issued.

Beginning March 1, 2023, however, a NOI will expire, and the secured party must send a new notice of intent to foreclose in compliance with Real Property Article, §7-105.1 and COMAR, §09.03.12.02, if an action to foreclose has not been filed after 1 year from the date on which the NOI is sent to the borrower.  In addition, the new regulation specifies that the NOI will expire if an action to foreclose is dismissed. The NOI will also expire if the borrower cures the default described in the NOI and becomes current, whether under the terms of the mortgage or deed of trust or under a loss mitigation agreement.

Other substantive changes include new requirements applicable to both pre file and post file mediation and requirements regarding the Certificate of Vacancy or Certificate of Property Unfit for Human Habitation.

New Foreclosure Forms Appendices to COMAR 09.03.12 must be used effective March 1, 2023.

In addition, applicable forms have been updated, and the new Foreclosure Forms Appendices to COMAR 09.03.12 must be used effective March 1, 2023. The forms are available on the Office of the Commissioner of Financial Regulation website found at https://www.labor.maryland.gov/finance/industry/foreclosureres.shtml.

The information contained herein is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information contained in this blog should be construed as legal advice from Shumaker Williams P.C. or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. This blog is current as of the date of original publication.