Bill > SB682

This bill addresses foreclosure procedures for residential properties with materially delinquent mortgages, introducing several key provisions. The legislation defines a "materially delinquent mortgage" as a mortgage with no payments made by the borrower in the past 5 years, excluding periods when foreclosures were legally restricted. It requires secured parties (mortgage owners or servicers) to send loan-related correspondence to mortgagors in each billing cycle, with specific detailed requirements about the information that must be included in these communications. Prior to October 1, 2027, a secured party can enforce a materially delinquent mortgage through foreclosure if they have sent at least one piece of loan-related correspondence during each billing cycle for the preceding 24 months or serve a 90-day notice to the mortgagor. After October 1, 2027, secured parties must have met correspondence requirements for 24 consecutive months to initiate foreclosure. The bill also permits mortgagors to raise a defense of laches (unreasonable delay) in foreclosure actions, and allows courts to attribute any enforcement delays to the secured party, even if the party did not hold the mortgage during the entire delay period. Additionally, the bill modifies requirements for filing foreclosure actions, including mandating that order to docket or complaint documents include specific affidavits about the mortgage's delinquency status and compliance with foreclosure requirements. The legislation will take effect on January 1, 2026.

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https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0682?ys=2025RS