How Do I.? - Evaluate My Situation
- Alternatives to Court
- Get Help
- Legal Research
- Start/Respond to a Case
- Discovery and Evidence
- Get ready for Court
- Judgments
- Appeals
Main navigation
- Home
- How Do I.? - Evaluate My Situation
- Alternatives to Court
- Get Help
- Legal Research
- Start/Respond to a Case
- Discovery and Evidence
- Get ready for Court
- Judgments
- Appeals
1. Landlord - Tenant
2. Transfers
3.,
4. Real Estate and Other Housing
5. Foreclosure
6. Foreclosure of Residential Residential Or Commercial Property
Foreclosure of Residential Residential Or Commercial Property
Topics on this page:
Effect of Foreclosure Sale on Purchaser and Tenant
Notice Required to Terminate Tenancy
Notice of Foreclosure Action
Notice of Impending Foreclosure Sale
Prohibition of Nonjudicial Eviction
Notice of Eviction
Summary of Required Notices
Collection of Rent
Maryland law supplies protections for occupants when the residential or commercial property is foreclosed. This post explains the rights of buyers and tenants.
Effect of Foreclosure Sale on Purchaser and Tenant
The purchaser at a mortgage foreclosure sale has the same rights and treatments against the renters of the mortgagor (the occupants' original property owner) as the mortgagor had, and the renters have the same rights and remedies against the purchaser as they had against their original proprietor on the day the mortgage was tape-recorded. So, where the lease precedes the mortgage, a foreclosure sale will not end the lease. Where the occupancy began after the mortgage was tape-recorded, the tenants still have particular rights relating to alert of the foreclosure action, the foreclosure sale and any notification of expulsion. Read the Law: Md. Code, Real Residential Or Commercial Property § 7-105.8
Notice Required to Terminate Tenancy
Bone fide occupants of home are entitled to at least 90 days notification before termination of the tenancy. A lease or occupancy is considered "authentic" just if the tenant is not the kid, partner or moms and dad of the initial property owner, the lease transaction was made at arm's length (i.e., the lessor and lessee act separately), and the rent is not considerably less than fair market lease for the residential or commercial property (unless the system's rent is lowered or funded due to a federal, State, or regional aid). Read the Law: Md. Code, Real Residential Or Commercial Property § 7-105.8
If the foreclosed residential or commercial property has actually not been purchased by an owner who will use the residential or commercial property as his main house (an "owner-occupier"), the brand-new owner seizes the residential or commercial property subject to any leases on the residential or commercial property and need to enable the renter to continue leasing the residential or commercial property up until the later of:
- the end of the lease term, or
- 90 days from the date that notice of termination of the tenancy is offered to the occupant.
If an owner-occupier purchases the residential or commercial property, he can terminate the occupancy before completion of the lease term, however need to provide the tenant with a 90 day notice of termination. For renters who are no longer under a lease and leasing at-will or month-to-month, the brand-new residential or commercial property owner, whether an owner-occupier or not, need to provide the occupant 90 days notification before the renter needs to leave.
NOTE: If the foreclosure sale was marketed as going through 1 or more occupancies, those leases are unaffected by the sale, other than the purchaser ends up being the landlord, as of the date of the sale.
The needed 90 day notification should:
1. Be in writing;
2. Be sent by superior and licensed mail, return invoice requested;
3. State the date on which the notice is being provided;
4. State the date on which the termination of the occupancy works; and
5. State whether the basis for termination of the tenancy is the expiration of the lease term, sale of the residential or commercial property to a buyer who will occupy the residential or commercial property as a main home, or termination of a month-to-month or at-will tenancy.
The requirements for termination of any federal- or State-subsidized tenancy, or of any State or regional law that provides longer period or extra protection for renters, supersedes these notification arrangements. Read the Law: Md. Code, Real Residential Or Commercial Property § 7-105.8
Notice of Foreclosure Action
In addition to any other notification required to be given by Maryland law, the individual authorized to make a sale of residential property in a foreclosure action need to send a different written notification according to the list below requirements:
- notice sent by superior mail
- in at least 12 point type
- dealt with to "all residents"
- at the address of the home
- the address side of the envelope need to display the following: "IMPORTANT NOTICE TO ALL OCCUPANTS: FORECLOSURE INFORMATION ENCLOSED. OPEN IMMEDIATELY." - in vibrant, capitalized letters of at least 12 point type
- be sent out at least 45 days before the foreclosure sale could take place
IMPORTANT NOTICE
A foreclosure sale of the residential or commercial property might happen at any time after 45 days from the date of this notice.
Below you will discover the name, address, and phone number of the person licensed to offer the residential or commercial property. You may call this person to inform him or her that you are an occupant at the residential or commercial property and to discover out more about the sale. For additional details, you may review the file in the workplace of the clerk of the circuit court. You likewise might get in touch with the Maryland Department of Housing and Community Development, at (insert telephone number), or seek advice from the Department's site, (insert site address), for support.
Person authorized to offer the residential or commercial property:
( Name).
( Address).
( Telephone).
( Date of this notification)
In addition to the notification described above, the individual authorized to make a sale of house in a foreclosure action must send out a separate written notice according to the list below requirements:
- notification sent by top-notch mail.
- in a minimum of 12 point type.
- addressed to "all residents".
- at the address of the house.
- the address side of the envelope need to 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 not earlier than one month and not behind 10 days before the date of sale
NOTICE OF IMPENDING FORECLOSURE SALE
A foreclosure action has been filed versus the residential or commercial property located at (insert address) in the circuit court for (insert name of county). This notification is being sent to you as an individual who lives in this residential or commercial property.
A foreclosure sale of the residential or commercial property is set up to occur as follows:
Date: ________________________.
Time: ________________________.
Place: ________________________
Most occupants can continue leasing the residential or commercial property after it is cost foreclosure. The foreclosure sale purchaser becomes the brand-new property manager.
Most renters with a lease for a specific time period have the right to continue renting the residential or commercial property till the end of the lease term. Most month-to-month occupants deserve to continue leasing the residential or commercial property for 90 days after getting a written notice to leave from the brand-new owner.
You should get legal advice to figure out if you have these rights.
Below you will discover the name, address, and phone number of the person authorized to sell the residential or commercial property. You might call this person to alert him or her that you are a renter at the residential or commercial property and to learn more about the sale. For more details, you might evaluate the file in the office of the clerk of the circuit court. You likewise might contact the Maryland Department of Housing and Community Development, at (insert telephone number), or seek advice from the Department's, website, (insert website address), for assistance.
Person licensed to offer the residential or commercial property:.
( Name).
( Address).
( Telephone).
( Date of this notice)
Prohibition of Nonjudicial Eviction
The person who buys house in a foreclosure sale or declares a right of belongings may not occupy or threaten to seize the residential or commercial property from a safeguarded homeowner by locking the resident out of the domestic property, cut off necessary services, such as gas, heat, water, electrical power, and so on, or take any other action that denies the secured citizen of real ownership. Read the Law: Md. Code, Real Residential Or Commercial Property § 7-113
Notice of Eviction
A domestic eviction after foreclosure sale follows this timeline:
- buyer buys the residential or commercial property at foreclosure sale.
- buyer notifies renter of termination of occupancy, providing the occupant 90 days to move.
- if occupant does not leave, buyer files a Movement for Judgment of Possession.
- court goes into a Judgment of Possession to purchaser
After the entry of the judgment of possession, the buyer should send a notice according to the list below requirements:
- composed notice.
- sent by first-class mail.
- written in least 12 point type.
- dealt with to "all occupants".
- at the address of the house.
- the address side of the envelope need to show the following: "IMPORTANT NOTICE TO ALL OCCUPANTS: EVICTION INFORMATION ENCLOSED. OPEN IMMEDIATELY." - in strong, capitalized letters of a minimum of 12 point type)
The notification must substantially remain in the list below kind:
IMPORTANT EVICTION NOTICE
The circuit court for (insert name of county) has gotten in a judgment granting belongings of the residential or commercial property situated at (insert address). YOU COULD BE EVICTED FROM THE RESIDENTIAL OR COMMERCIAL PROPERTY ON ANY DAY AFTER (insert first date after which expulsion might legally occur under State and regional law).
Below you will find the name, address, and phone number of the person who purchased the residential or commercial property or the buyer's representative. You may call this person to discover more about the court order. For more info, you might review the file in the workplace of the clerk of the circuit court. You may desire to consult a lawyer to identify your rights. You likewise may contact the Maryland Department of Housing and Community Development, at (insert phone number), or consult the Department's site, (insert website address), for assistance.
Purchaser of the residential or commercial property or buyer's agent:
( Name).
( Address).
( Telephone).
( Date of this notification)
Read the Law: Md Code, Real Residential Or Commercial Property § 7-105.11
The person providing a notice needed by this section must file in the foreclosure proceeding after each notification is sent an affidavit of compliance with the arrangements of this section.
In the event of postponement of the sale, which may be done at the discretion of the individual authorized to make the sale, no new or additional notice has actually to be offered pursuant to this area.
Summary of Required Notices
First Notice - Foreclosure filing in court (sale might take place after 45 days)
- 10-30 day notification to resident of foreclosure sale's scheduled date and time
- Transfer of title, occupant has 90 days to vacate.
- Note: a non-bona fide tenant can not benefit from the 90 day notification requirement and purchaser can file the movement for judgment of belongings instantly
- Tenant should be served with a copy of the motion for judgment of ownership.
Md. Rule 14-102
- Court gets in a judgment of belongings
Collection of Rent
A foreclosure sale purchaser may not exercise any right to gather lease payments from an authentic renter in belongings of a home unless the purchaser:
1. Conducts a reasonable questions into: 1. The tenancy status of the house; and.
2. Whether any specific in possession of the house is an authentic tenant; and
1. Contains the name, address, and telephone number of the buyer or the agent of the purchaser who is accountable for handling and maintaining the house; and.
2. States that rent payments must be directed to the buyer or the agent.
A foreclosure sale purchaser waives any claim to lease payments from an authentic occupant in belongings of a residential home for any period of time before the purchaser pleases the requirements of this area, other than that the waiver does not apply to lease for usage of the house for the 15 days right away prior to the date the purchaser satisfied the requirements of this section. Read the Law: Md. Code, Real Residential Or Commercial Property § 7-105.12
Is this legal advice?
This site offers legal details, not legal guidance. We strive to guarantee the accuracy of the information and to plainly discuss your options. However we do not provide legal suggestions - the application of the law to your specific scenarios. For legal recommendations, you ought to consult a lawyer. The Maryland Thurgood Marshall State Law Library, a court-related firm of the Maryland Judiciary, sponsors this website. In the lack of file-specific attribution or copyright, the Maryland Thurgood Marshall State Law Library might hold the copyright to parts of this website. You are free to copy the details for your own use or for other non-commercial purposes with the following language "Source: Maryland's People's Law Library - www.peoples-law.org.
