Source: https://www.peoples-law.org/index.php/foreclosure-residential-property
Timestamp: 2019-09-17 02:38:31
Document Index: 454558681

Matched Legal Cases: ['§ 7', '§ 7', '§ 7', '§ 7', '§ 7', '§ 7']

Maryland law provides protections for tenants when the property is foreclosed. This article describes the rights of purchasers and tenants.
The purchaser at a mortgage foreclosure sale has the same rights and remedies against the tenants of the mortgagor (the tenants' original landlord) as the mortgagor had, and the tenants have the same rights and remedies against the purchaser as they had against their original landlord on the day the mortgage was recorded. So, where the lease predates the mortgage, a foreclosure sale will not end the lease. Where the tenancy began after the mortgage was recorded, the tenants still have certain rights regarding notification of the foreclosure action, the foreclosure sale and any notice of eviction. Read the Law: Md. Code, Real Property § 7-105.6
Bone fide tenants of residential property are entitled to at least 90 days notice before termination of the tenancy. A lease or tenancy is considered "bona fide" only if the tenant is not the child, spouse or parent of the original landlord, the lease transaction was made at arm’s length (i.e., the lessor and lessee act independently), and the rent is not substantially less than fair market rent for the property (unless the unit's rent is reduced or subsidized due to a federal, State, or local subsidy). Read the Law: Md. Code, Real Property § 7-105.6
If the foreclosed property has not been purchased by an owner who will use the property as his primary residence (an “owner-occupier”), the new owner takes possession of the property subject to any leases on the property and must allow the tenant to continue renting the property until the later of:
the end of the lease term, or
90 days from the date that notice of termination of the tenancy is given to the tenant.
If an owner-occupier purchases the property, he can terminate the tenancy before the end of the lease term, but must provide the tenant with a 90 day notice of termination. For tenants who are no longer under a lease and renting at-will or month-to-month, the new property owner, whether an owner-occupier or not, must give the tenant 90 days notice before the tenant has to leave.
NOTE: If the foreclosure sale was advertised as being subject to 1 or more tenancies, those leases are unaffected by the sale, except the purchaser becomes the landlord, as of the date of the sale.
The requirements for termination of any federal- or State-subsidized tenancy, or of any State or local law that provides longer time periods or additional protection for tenants, supersedes these notice provisions. Read the Law: Md. Code, Real Property § 7-105.6
In addition to any other notice required to be given by Maryland law, the person authorized to make a sale of residential property in a foreclosure action must send a separate written notice according to the following requirements:
notice sent by first-class mail
in at least 12 point type
addressed to "all occupants"
at the address of the residential property
the address side of the envelope must display the following: "IMPORTANT NOTICE TO ALL OCCUPANTS: FORECLOSURE INFORMATION ENCLOSED. OPEN IMMEDIATELY." - in bold, capitalized letters of at least 12 point type
be sent at least 45 days before the foreclosure sale could occur
The notice must substantially be in the following form:
Read the Law: Md Code, Real Property § 7-105.9
In addition to the notice described above, the person authorized to make a sale of residential property in a foreclosure action must send a separate written notice according to the following requirements:
be sent not earlier than 30 days and not later than 10 days before the date of sale
The person who purchases residential property in a foreclosure sale or claims a right of possession may not take possession or threaten to take possession of the property from a protected resident by locking the resident out of the residential property, cut off essential services, such as gas, heat, water, electricity, etc., or take any other action that deprives the protected resident of actual possession. Read the Law: Md. Code, Real Property § 7-113
A residential eviction after foreclosure sale follows this timeline:
purchaser buys the property at foreclosure sale
purchaser notifies tenant of termination of tenancy, giving the tenant 90 days to move
if tenant does not leave, purchaser files a Motion for Judgment of Possession
court enters a Judgment of Possession to purchaser
After the entry of the judgment of possession, the purchaser must send a notice according to the following requirements:
sent by first-class mail
written in least 12 point type
the address side of the envelope must display the following: "IMPORTANT NOTICE TO ALL OCCUPANTS: EVICTION INFORMATION ENCLOSED. OPEN IMMEDIATELY." - in bold, capitalized letters of at least 12 point type)
Foreclosure filing in court (sale may occur after 45 days)
10-30 day notice to occupant of foreclosure sale's scheduled date and time
Transfer of title, tenant has 90 days to vacate
Note: a non-bona fide tenant cannot take advantage of the 90 day notice requirement and purchaser can file the motion for judgment of possession immediately
Tenant must be served with a copy of the motion for judgment of possession
Md. Rule 14-102
Court enters a judgment of possession
A foreclosure sale purchaser waives any claim to rent payments from a bona fide tenant in possession of a residential property for any period of time before the purchaser satisfies the requirements of this section, except that the waiver does not apply to rent for use of the residential property for the 15 days immediately prior to the date the purchaser satisfied the requirements of this section. Read the Law: Md. Code, Real Property § 7-105.10
Last Updated: Fri, 08/16/2019 - 3:28 pm