Bill > SB353

This bill establishes new restrictions on when a lender can begin a foreclosure process on residential property, defining "owner-occupied residential property" as a home where at least one unit is occupied by its owner as their primary residence, and "residential property" as real estate with four or fewer dwelling units intended for habitation. Generally, a foreclosure action cannot be filed until 90 days after a default or 45 days after a required notice of intent to foreclose is sent, whichever is later. However, lenders can seek court permission to start foreclosure immediately if the loan was obtained through fraud, no payments have ever been made, the property has been destroyed, the default occurred after a bankruptcy stay was lifted, or the property is vacant and abandoned. The bill also mandates that foreclosure filings must include specific documentation, such as the mortgage or deed of trust, proof of debt, affidavits confirming the default and accuracy of notices, and information related to loss mitigation efforts, along with a $450 filing fee. Additionally, foreclosure actions must be initiated within 10 years of the claimed default date, and if a lender acquires debt that has been in default for five or more years, they must provide additional court documents.

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https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0353?ys=2026RS