Maryland Enacts Provisions Affecting Foreclosures and Credit Report Security Freezes
Foreclosures of Vacant and Abandoned Dwellings
Effective October 1, 2017, Maryland enacted certain provisions to streamline the foreclosures of vacant and abandoned properties. Essentially, the provisions allow for expediency when a petition is filed for the foreclosure of a “vacant and abandoned” property. In addition, the provisions detail the qualifications for good faith attempts for the delivery of the foreclosure documents to the mortgagor/grantor (collectively referred to as “mortgagor”).
Under the provisions, a court will now rule on a petition “promptly” after it is filed. However, the streamlined process will only commence if a property is found to be “vacant and abandoned.” In order for the dwelling to be found vacant and abandoned, it must be found that the mortgage or deed of trust has been in default for 120 days plus meet three of the following conditions: (1) utility disconnection; (2) disrepair of windows/dwelling entrances; (3) accumulation of garbage on the property; (4) lack of habitation during inspection; (5) a written notice by the mortgagor of abandonment; (6) property condemnation; or (7) existence of two citations along with an unrectified health and safety issue.
As a defense against the classification of a dwelling as “vacant and abandoned,” two recourses are available. First, the mortgagor may file an answer or objection. Second, a mortgagor may file a written statement which opposes a “vacancy and abandonment” assertion. These defenses are pivotal since the process has emphasized the importance of expediency. In fact, only two good faith attempts to provide the foreclosure documents to the opposing party are required before the court will allow an affidavit of good faith attempts to be filed in lieu.
Credit Report Security Freezes
Effective October 1, 2017, Maryland amended provisions regarding fees associated with credit report security freezes. Previously, consumers were allotted two waived fee freezes provided he/she gave the consumer credit report agency (agency) the required documentation. However, under the amendments this has changed. On October 1, 2017, a consumer will be allotted one waived fee freeze provided he/she give the agency the required documentation. This waived fee freeze is only allowed for the placement of a freeze; it may not be used at the discretion of the consumer. The amendments also updated definitions such as “security breach” and other technical terms to reflect the changes in technology and the industry.
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