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Maryland Legislature Considers Requirements For Foreclosure of Liens By Condominiums, Coops and Homeowner Associations

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.