House Bill 811, now pending before the Maryland General Assembly, would establish new notice requirements before a condominium, cooperative housing corporation or homeowner association would be able to pursue lien foreclosure for unpaid assessments. The proposed enactment of new Section 7-105.13 of the Real Property Article of the Annotated Code of Maryland would require that an action to foreclose a lien may not be filed until 45 days after written notice of intent to foreclose is provided. A complaint foreclose a lien would have to be accompanied by an affidavit establishing the debt owed and a copy of the notice of intent to foreclose. A foreclosure sale could not occur until at least 45 days after service of the complaint and supporting documents.
In addition to advertising requirements prior to a foreclosure sale, the debtor would have a right to cure the default by paying the amount due plus costs up to one day prior to the sale. On request, the debtor or their attorney, within a reasonable time would be entitled to receive the amount necessary to cure the default and instructions for delivering payment. The bill also provides that a cause of action for failure to comply with these provisions may be brought any time up to three years after ratification of the sale.
