Opinion ID: 1476585
Heading Depth: 2
Heading Rank: 2

Heading: Resales

Text: Although this Court has stated that a purchaser in some types of judicial sales and under some circumstances does not necessarily lose his equitable title in a property after technically defaulting on the payment of the purchase price, see Merryman, 250 Md. at 11-12, 241 A.2d at 565-66 (holding that a purchaser did not abandon his equitable title and right to pay fully the purchase price where the trustee did not petition the court for a resale and the purchaser was ready, willing and able to pay the purchase price, although 20 years had passed after the ratification of the sale), the trustee, under most circumstances of default, will normally petition the court to order a resale of the property pursuant to Md. Rule 14-305(g), which, as previously mentioned, states that the resale is at the risk and expense of the purchaser. The order of resale revokes the ratification of the first sale. See McCann and Dalrymple, supra . A resale, however, is within the continuation of the original foreclosure even though additional conditions may attach to the resale. That was pointed out in Hoboken, supra, where a decree was passed for the sale of a mortgaged property and the purchaser defaulted on the balance of the purchase money. As stated earlier, this Court said the following in reference to judicial resales relating to defaults of lien instruments: [W]hilst, under a judicial resale the property is in fact again put under the hammer, it is put there not as a new, distinct independent procedure, but as a means and solely as a means to realize the money which the original but defaulting purchaser failed to pay. The resale takes place under the original decree, supplemented by an order. It is made by the same trustees, in the same proceedings and with a view to pay off the same indebtedness for the payment of which the property was sold in the first instance, and the money realized by it is always applied precisely as would have been applied the money bid at the original sale had that money been paid by the first purchaser. The resale is simply an execution of the decree for a sale. Its very name imports that it is not such a new sale as to be a distinct proceeding. State v. The Second Nat'l Bank of Hoboken, 84 Md. at 330, 35 A. at 890 (alteration added). See also Continental Trust Co. v. Baltimore Refrigerating & Heating Co., 120 Md. at 451, 456-57, 87 A. at 949-50 (in the context of a judicial sale and resale arising out of a mortgage to secure an issue of two thousand bonds of the par value of $1,000.00 each.); Werner, supra, 108 Md. at 635, 71 A. at 309 (1908) (power of sale foreclosure); Schaefer v. O'Brien, 49 Md. 253, 256 (1878) (sale and resale of mortgaged property after default by mortgagor). We hold that there is no common-law rule in Maryland that a defaulting purchaser is entitled to excess proceeds realized at a resale, nor should there be. Any interpretation of Aukam to the contrary is rejected.