<section article="grp" article_name="Real Property" number="7-101" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>Every deed which by any other writing appears to have been intended only as security for payment of an indebtedness or performance of an obligation, though expressed as an absolute grant is considered a mortgage. The person for whose benefit the deed is made may not have any benefit or advantage from the recording of the deed, unless every other writing operating as a defeasance of it, or explanatory of its being intended to have the effect only of a mortgage, also is recorded in the same records at the same time.</text> </level> <level label="b"> <text>Subsection (a) of this section is not applicable to the grant of a security interest in a mortgage by a mortgagee, or one of several mortgagees, or any assignee of his interest in a mortgage as security for payment of an indebtedness or performance of an obligation. Such a transaction is governed by Title 9 of the Maryland Uniform Commercial Code.</text> </level> <level label="c"> <text>Notwithstanding any provision of Title 9 of the Maryland Uniform Commercial Code to the contrary, if a security interest in a mortgage was attached and perfected before July 1, 2001, in accordance with subsection (b) of this section as in effect before July 1, 2001, then the security interest shall continue to be perfected after July 1, 2001, without the need for any additional filing in the land records in the county where the mortgage is recorded, and without the need for any additional filing otherwise required under Title 9 of the Maryland Uniform Commercial Code.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-102" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <level label="1"> <text>No mortgage or deed of trust may be a lien or charge on any property for any principal sum of money in excess of the aggregate principal sum appearing on the face of the mortgage or deed of trust and expressed to be secured by it, without regard to whether or when advanced or readvanced.</text> </level> <level label="2"> <text>Paragraph (1) of this subsection does not apply to a mortgage or deed of trust to:</text> <level label="i"> <text>Guarantee the party secured against loss from being an obligee of a third party;</text> </level> <level label="ii"> <text>Indemnify the party secured against loss from being an endorser, guarantor, or surety; or</text> </level> <level label="iii"> <text>Secure a guarantee or indemnity agreement.</text> </level> </level> </level> <level label="b"> <text>If after the date of the mortgage or deed of trust, any sum of money is advanced or readvanced, any endorsement or guaranty is made, or the liability under an indemnity agreement arises, priority for such sum of money or for any indemnity arising under the endorsement, or guaranty, or indemnity agreement dates from the date of the mortgage or deed of trust as against the rights of intervening purchasers, mortgagees, trustees under deeds of trust, or lien creditors, regardless of whether the advance, readvance, endorsement, or guaranty was obligatory or voluntary under the terms of the mortgage or deed of trust.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-103" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>The title to any promissory note, other instrument, or debt secured by a mortgage, both before and after the maturity of the note, other instrument, or debt, conclusively is presumed to be vested in the person holding the record title to the mortgage. If the mortgage is duly released of record, the promissory note, other instrument, or debt secured by the mortgage, both before and after the maturity of the promissory note, other instrument, or debt, conclusively is presumed to be paid as far as any lien on the property granted by the mortgage is concerned.</text> </level> <level label="b"> <text>After an assignment of a mortgage is recorded, any payment made by the original mortgagor to the assignor is effective to reduce or discharge the note or debt, unless the mortgagor has received actual notice of the assignment prior to the payment. This provision also applies to a payment by a transferee of the mortgagor’s interest in the mortgaged property except where the assignment of the mortgage is of record at the effective date of the transfer of the mortgagor’s interest in the mortgaged property.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-104" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <text>If property is sold and granted, and as part of the same transaction the purchaser gives a mortgage or deed of trust to secure total or partial payment of the purchase money, the mortgage or deed of trust shall be preferred to any previous judgment or decree for the payment of money which is obtained against the purchaser if it recites that the sum received is all or part of the purchase money of the property or otherwise recites that it is a purchase money mortgage or deed of trust. This section is applicable regardless of whether the mortgage or deed of trust is given to the vendor of the property or to a third party who advances all or part of the purchase money.</text> </section> <section article="grp" article_name="Real Property" number="7-105" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>In this section, “individual” means a natural person.</text> </level> <level label="b"> <level label="1"> <text>A mortgage or deed of trust may authorize the sale of the property or declare the borrower’s assent to the passing of a decree for the sale of the property, on default in a condition on which the mortgage or deed of trust provides that a sale may be made.</text> </level> <level label="2"> <text>A power of sale or assent to decree authorized in a mortgage or deed of trust may be exercised only by an individual.</text> </level> <level label="3"> <text>The individual selling the property under a power of sale need not be named in the mortgage or deed of trust.</text> </level> <level label="4"> <text>An error or omission in a mortgage or deed of trust concerning the designation of the trustee or the individual authorized to exercise a power of sale does not invalidate the instrument or the ability of the mortgagee or beneficiary of the deed of trust to appoint an individual to exercise the power of sale.</text> </level> <level label="5"> <text>If a mortgage or deed of trust allows for the appointment or substitution of a trustee or an individual authorized to exercise a power of sale, the holder of the mortgage or deed of trust may make the appointments or substitutions from time to time.</text> </level> </level> <level label="c"> <text>A sale made pursuant to this section, §§ 7–105.1 through 7–105.10 of this subtitle, or the Maryland Rules, after final ratification by the court and grant of the property to the purchaser on payment of the purchase money, has the same effect as if the sale and grant were made under decree between the proper parties in relation to the mortgage or deed of trust and in the usual course of the court, and operates to pass all the title which the borrower had in the property at the time of the recording of the mortgage or deed of trust.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-105.1" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Certified community development financial institution” means a community development financial institution that is certified by the Community Development Financial Institutions Fund in the U.S. Department of the Treasury under 12 U.S.C. § 4701 et seq.</text> </level> <level label="ii"> <text>“Certified community development financial institution” includes any company that controls, is controlled by, or is under common control with a certified community development financial institution.</text> </level> </level> <level label="3"> <text>“Final loss mitigation affidavit” means an affidavit that:</text> <level label="i"> <text>Is made by a person authorized to act on behalf of a secured party of a mortgage or deed of trust on owner–occupied residential property that is the subject of a foreclosure action;</text> </level> <level label="ii"> <text>Certifies the completion of the final determination of loss mitigation analysis in connection with the mortgage or deed of trust; and</text> </level> <level label="iii"> <text>If denied, provides an explanation for the denial of a loan modification or other loss mitigation.</text> </level> </level> <level label="4"> <text>“Foreclosure mediation” means a conference at which the parties in a foreclosure action, their attorneys, additional representatives of the parties, or a combination of those persons appear before an impartial individual to discuss the positions of the parties in an attempt to reach agreement on a loss mitigation program for the mortgagor or grantor.</text> </level> <level label="5"> <text>“Housing counseling services” means assistance provided to mortgagors or grantors by nonprofit and governmental entities that are identified on a list maintained by the Department of Housing and Community Development.</text> </level> <level label="6"> <text>“Loss mitigation analysis” means an evaluation of the facts and circumstances of a loan secured by owner–occupied residential property to determine:</text> <level label="i"> <text>Whether a mortgagor or grantor qualifies for a loan modification; and</text> </level> <level label="ii"> <text>If there will be no loan modification, whether any other loss mitigation program may be made available to the mortgagor or grantor.</text> </level> </level> <level label="7"> <text>“Loss mitigation program” means an option in connection with a loan secured by owner–occupied residential property that:</text> <level label="i"> <text>Avoids foreclosure through loan modification or other changes to existing loan terms that are intended to allow the mortgagor or grantor to stay in the property;</text> </level> <level label="ii"> <text>Avoids foreclosure through a short sale, deed in lieu of foreclosure, or other alternative that is intended to simplify the mortgagor’s or grantor’s relinquishment of ownership of the property; or</text> </level> <level label="iii"> <text>Lessens the harmful impact of foreclosure on the mortgagor or grantor.</text> </level> </level> <level label="8"> <text>“Owner–occupied residential property” means residential property in which at least one unit is occupied by an individual who:</text> <level label="i"> <text>Has an ownership interest in the property; and</text> </level> <level label="ii"> <text>Uses the property as the individual’s primary residence.</text> </level> </level> <level label="9"> <text>“Postfile mediation” means foreclosure mediation that occurs in accordance with subsection (j) of this section after the date on which the order to docket or complaint to foreclose is filed.</text> </level> <level label="10"> <text>“Prefile mediation” means foreclosure mediation that occurs in accordance with subsection (d) of this section before the date on which the order to docket or complaint to foreclose is filed.</text> </level> <level label="11"> <text>“Preliminary loss mitigation affidavit” means an affidavit that:</text> <level label="i"> <text>Is made by a person authorized to act on behalf of a secured party of a mortgage or deed of trust on owner–occupied residential property that is the subject of a foreclosure action;</text> </level> <level label="ii"> <text>Certifies the status of an incomplete loss mitigation analysis in connection with the mortgage or deed of trust; and</text> </level> <level label="iii"> <text>Includes reasons why the loss mitigation analysis is incomplete.</text> </level> </level> <level label="12"> <text>“Residential property” means real property improved by four or fewer single family dwelling units that are designed principally and are intended for human habitation.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, an action to foreclose a mortgage or deed of trust on residential property may not be filed until the later of:</text> <level label="i"> <text>90 days after a default in a condition on which the mortgage or deed of trust provides that a sale may be made; or</text> </level> <level label="ii"> <text>45 days after the notice of intent to foreclose required under subsection (c) of this section is sent.</text> </level> </level> <level label="2"> <level label="i"> <text>The secured party may petition the circuit court for leave to immediately commence an action to foreclose the mortgage or deed of trust if:</text> <level label="1"> <text>The loan secured by the mortgage or deed of trust was obtained by fraud or deception;</text> </level> <level label="2"> <text>No payments have ever been made on the loan secured by the mortgage or deed of trust;</text> </level> <level label="3"> <text>The property subject to the mortgage or deed of trust has been destroyed;</text> </level> <level label="4"> <text>The default occurred after the stay has been lifted in a bankruptcy proceeding; or</text> </level> <level label="5"> <text>The property subject to the mortgage or deed of trust is property that is vacant and abandoned as provided under § 7–105.18 of this subtitle.</text> </level> </level> <level label="ii"> <text>The court may rule on the petition with or without a hearing.</text> </level> <level label="iii"> <text>If the petition is granted:</text> <level label="1"> <text>The action may be filed at any time after a default in a condition on which the mortgage or deed of trust provides that a sale may be made; and</text> </level> <level label="2"> <text>The secured party need not send the written notice of intent to foreclose required under subsection (c) of this section.</text> </level> </level> </level> </level> <level label="b–1"> <level label="1"> <text>This subsection applies only to an action for the foreclosure of a mortgage or deed of trust on an owner–occupied residential property.</text> </level> <level label="2"> <text>Notwithstanding any other law, the court shall stay the proceedings if the defendant presents evidence satisfactory to the court that the defendant is:</text> <level label="i"> <text>An employee of the federal or State government or an employee of a local government in the State; and</text> </level> <level label="ii"> <text>Involuntarily furloughed from work without pay because of a government shutdown, regardless of whether the employee is required to report to work during the furlough.</text> </level> </level> <level label="3"> <level label="i"> <text>Subject to subparagraph (ii) of this paragraph, a stay under this subsection shall be granted for a time that the court considers reasonable.</text> </level> <level label="ii"> <text>A stay under this subsection may not be granted for a period that ends more than 30 days after the end of the government shutdown without a showing of sufficient cause by a party to the action.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in subsection (b)(2)(iii) of this section, at least 45 days before the filing of an action to foreclose a mortgage or deed of trust on residential property, the secured party shall send a written notice of intent to foreclose to the mortgagor or grantor and the record owner.</text> </level> <level label="2"> <text>The notice of intent to foreclose shall be sent:</text> <level label="i"> <text>By certified mail, postage prepaid, return receipt requested, bearing a postmark from the United States Postal Service; and</text> </level> <level label="ii"> <text>By first–class mail.</text> </level> </level> <level label="3"> <text>A copy of the notice of intent to foreclose shall be sent to the Commissioner of Financial Regulation.</text> </level> <level label="4"> <text>The notice of intent to foreclose shall:</text> <level label="i"> <text>Be in the form that the Commissioner of Financial Regulation prescribes by regulation; and</text> </level> <level label="ii"> <text>Contain:</text> <level label="1"> <text>The name and telephone number of:</text> </level> <level label="A"> <text>The secured party;</text> </level> <level label="B"> <text>The mortgage servicer, if applicable; and</text> </level> <level label="C"> <text>An agent of the secured party who is authorized to modify the terms of the mortgage loan;</text> </level> <level label="2"> <text>The name and license number of the Maryland mortgage lender and mortgage originator, if applicable;</text> </level> <level label="3"> <text>The amount required to cure the default and reinstate the loan, including all past due payments, penalties, and fees;</text> </level> <level label="4"> <text>A statement recommending that the mortgagor or grantor seek housing counseling services;</text> </level> <level label="5"> <text>The telephone number and the Internet address of nonprofit and government resources available to assist mortgagors and grantors facing foreclosure, as identified by the Commissioner of Financial Regulation;</text> </level> <level label="6"> <text>An explanation of the Maryland foreclosure process and time line, as prescribed by the Commissioner of Financial Regulation; and</text> </level> <level label="7"> <text>Any other information that the Commissioner of Financial Regulation requires by regulation.</text> </level> </level> </level> <level label="5"> <text>For an owner–occupied residential property, the notice of intent to foreclose shall be accompanied by:</text> <level label="i"> <text>A loss mitigation application:</text> <level label="1"> <text>For loss mitigation programs that are applicable to the loan secured by the mortgage or deed of trust that is the subject of the foreclosure action; or</text> </level> <level label="2"> <text>If the secured party does not have its own loss mitigation application, in the form prescribed by the Commissioner of Financial Regulation;</text> </level> </level> <level label="ii"> <text>Instructions for completing the loss mitigation application and a telephone number to call to confirm receipt of the application;</text> </level> <level label="iii"> <text>A description of the eligibility requirements for the loss mitigation programs offered by the secured party that may be applicable to the loan secured by the mortgage or deed of trust that is the subject of the foreclosure action;</text> </level> <level label="iv"> <text>An envelope addressed to the person responsible for conducting loss mitigation analysis on behalf of the secured party for the loan secured by the mortgage or deed of trust that is the subject of the foreclosure action;</text> </level> <level label="v"> <text>If the secured party offers prefile mediation, a notice in the form that the Commissioner of Financial Regulation prescribes by regulation that states that:</text> <level label="1"> <text>The secured party offers prefile mediation;</text> </level> <level label="2"> <text>The mortgagor or grantor may elect to participate in prefile mediation;</text> </level> <level label="3"> <text>The mortgagor or grantor will not be entitled to postfile mediation if the mortgagor or grantor participates in prefile mediation, except as otherwise provided in a prefile mediation agreement;</text> </level> <level label="4"> <text>The mortgagor or grantor is required to participate in housing counseling services as a precondition to prefile mediation; and</text> </level> <level label="5"> <text>A fee will be charged for the prefile mediation and the amount of the fee; and</text> </level> </level> <level label="vi"> <text>If the secured party offers prefile mediation, an application to participate in prefile mediation and instructions to complete and submit the application, all in the form that the Commissioner of Financial Regulation prescribes by regulation.</text> </level> </level> <level label="6"> <text>For a property that is not an owner–occupied residential property, the notice of intent to foreclose shall be accompanied by:</text> <level label="i"> <text>A written notice of the determination that the property is not owner–occupied residential property; and</text> </level> <level label="ii"> <text>A telephone number to call to contest that determination.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>For owner–occupied residential property, a secured party may offer to participate in prefile mediation with a mortgagor or grantor to whom the secured party has delivered a notice of intent to foreclose.</text> </level> <level label="2"> <text>If offered by a secured party, a mortgagor or grantor may elect to participate in prefile mediation.</text> </level> <level label="3"> <text>If a mortgagor or grantor elects to participate in prefile mediation, the mortgagor or grantor shall notify the secured party by submitting the application described in subsection (c)(5)(vi) of this section not more than 25 days after the date on which the notice of intent to foreclose is mailed by the secured party.</text> </level> <level label="4"> <level label="i"> <text>As a precondition to prefile mediation, a mortgagor or grantor shall participate in housing counseling services.</text> </level> <level label="ii"> <text>The Department of Housing and Community Development shall prescribe the timing and form of certification of participation in housing counseling services.</text> </level> </level> <level label="5"> <text>If a mortgagor or grantor submits an application to participate in prefile mediation to the secured party in accordance with paragraph (3) of this subsection, the secured party shall notify the Office of Administrative Hearings not more than 5 business days after the date on which the secured party receives the application.</text> </level> <level label="6"> <text>The Office of Administrative Hearings shall:</text> <level label="i"> <text>Schedule a prefile mediation session not more than 60 days after the day on which it receives notice by a secured party of an election to participate in prefile mediation; and</text> </level> <level label="ii"> <text>Notify the parties and their attorneys, if any, of the date of the prefile mediation session.</text> </level> </level> <level label="7"> <text>By regulation, the Commissioner of Financial Regulation shall:</text> <level label="i"> <text>Establish the fee for prefile mediation; and</text> </level> <level label="ii"> <text>Prescribe the form and content of the notice about prefile mediation, the application to participate in prefile mediation, and instructions to complete the application.</text> </level> </level> <level label="8"> <level label="i"> <text>Notwithstanding subsection (b)(1) of this section, if the secured party and grantor or mortgagor elect to participate in prefile mediation, an order to docket or complaint to foreclose may not be filed until the completion of prefile mediation in accordance with this section.</text> </level> <level label="ii"> <text>The date that prefile mediation is completed is the date that the Office of Administrative Hearings issues the report describing the results of the prefile mediation.</text> </level> </level> <level label="9"> <text>The fee for prefile mediation collected under this subsection shall be distributed to the Housing Counseling and Foreclosure Mediation Fund established under § 4–507 of the Housing and Community Development Article.</text> </level> <level label="10"> <text>By regulation, the Commissioner of Financial Regulation shall establish a mediation checklist that describes the matters that shall be reviewed and considered in a prefile mediation.</text> </level> <level label="11"> <level label="i"> <text>At the commencement of a prefile mediation session, each party shall review the mediation checklist.</text> </level> <level label="ii"> <text>The mediator shall mark each item on the mediation checklist as the item is addressed at the prefile mediation session.</text> </level> <level label="iii"> <text>At the conclusion of a prefile mediation session, each party shall sign the mediation checklist.</text> </level> </level> <level label="12"> <text>If the prefile mediation results in an agreement, the parties shall execute a prefile mediation agreement.</text> </level> <level label="13"> <text>In addition to describing the terms of the agreement among the parties, the prefile mediation agreement shall, in 14 point, bold font:</text> <level label="i"> <text>Designate the person and address to whom the mortgagor or grantor may provide notice of a change of financial circumstances; and</text> </level> <level label="ii"> <text>State that the mortgagor or grantor is not entitled to postfile mediation unless otherwise agreed by the parties.</text> </level> </level> <level label="14"> <text>The Office of Administrative Hearings shall draft the prefile mediation agreement and provide a copy of the executed agreement to the parties and their attorneys, if any.</text> </level> <level label="15"> <text>The Office of Administrative Hearings shall provide a report of results of mediation to the parties and their attorneys, if any.</text> </level> <level label="16"> <text>If a mortgagor or grantor notifies the person designated under paragraph (13) of this subsection of a change of financial circumstances, the designee shall:</text> <level label="i"> <text>Determine whether the change of financial circumstances shall alter the mediation agreement or outcome of the prefile mediation; and</text> </level> <level label="ii"> <text>Notify the mortgagor or grantor of the determination by first–class mail before any additional action is taken with respect to foreclosure.</text> </level> </level> <level label="17"> <level label="i"> <text>The parties to the prefile mediation agreement may execute an amended prefile mediation agreement based on a material change of financial circumstances of the mortgagor or grantor.</text> </level> <level label="ii"> <text>The secured party shall provide a copy of the executed amended agreement to the mortgagor or grantor.</text> </level> </level> <level label="18"> <text>To the extent that a notice of intent to foreclose complies with this section and otherwise is valid under the law, a notice of intent to foreclose issued with respect to a property that has been the subject of prefile mediation continues to be valid for 1 year after the date on which the initial prefile mediation agreement is executed by the parties.</text> </level> <level label="19"> <text>Nothing in this subsection shall prohibit a secured party and mortgagor or grantor from engaging in loss mitigation by other means.</text> </level> </level> <level label="e"> <text>An order to docket or a complaint to foreclose a mortgage or deed of trust on residential property shall:</text> <level label="1"> <text>Include:</text> <level label="i"> <text>If applicable, the license number of:</text> <level label="1"> <text>The mortgage originator; and</text> </level> <level label="2"> <text>The mortgage lender; and</text> </level> </level> <level label="ii"> <text>An affidavit stating:</text> <level label="1"> <text>The date on which the default occurred and the nature of the default; and</text> </level> <level label="2"> <text>If applicable, that:</text> </level> <level label="A"> <text>A notice of intent to foreclose was sent to the mortgagor or grantor in accordance with subsection (c) of this section and the date on which the notice was sent; and</text> </level> <level label="B"> <text>At the time the notice of intent to foreclose was sent, the contents of the notice of intent to foreclose were accurate; and</text> </level> </level> </level> <level label="2"> <text>Be accompanied by:</text> <level label="i"> <text>The original or a certified copy of the mortgage or deed of trust;</text> </level> <level label="ii"> <text>A statement of the debt remaining due and payable supported by an affidavit of the plaintiff or the secured party or the agent or attorney of the plaintiff or secured party;</text> </level> <level label="iii"> <text>A copy of the debt instrument accompanied by an affidavit certifying ownership of the debt instrument;</text> </level> <level label="iv"> <text>If applicable, the original or a certified copy of the assignment of the mortgage for purposes of foreclosure or the deed of appointment of a substitute trustee;</text> </level> <level label="v"> <text>If any defendant is an individual, an affidavit that is in compliance with § 3931 of the Servicemembers Civil Relief Act;</text> </level> <level label="vi"> <text>If applicable, a copy of the notice of intent to foreclose;</text> </level> <level label="vii"> <text>If the secured party and mortgagor or grantor have elected to participate in prefile mediation, the report of the prefile mediation issued by the Office of Administrative Hearings;</text> </level> <level label="viii"> <text>If the secured party and the mortgagor or grantor have not elected to participate in prefile mediation, a statement that the parties have not elected to participate in prefile mediation;</text> </level> <level label="ix"> <text>In addition to any other filing fees required by law, a filing fee in the amount of $450; and</text> </level> <level label="x"> <level label="1"> <text>If the loss mitigation analysis has been completed subject to subsection (g) of this section, a final loss mitigation affidavit in the form prescribed by regulation adopted by the Commissioner of Financial Regulation; and</text> </level> <level label="2"> <text>If the loss mitigation analysis has not been completed, a preliminary loss mitigation affidavit in the form prescribed by regulation adopted by the Commissioner of Financial Regulation.</text> </level> </level> </level> </level> <level label="f"> <text>Notwithstanding any other law, the court may not accept a lost note affidavit in lieu of a copy of the debt instrument required under subsection (e)(2)(iii) of this section, unless the affidavit:</text> <level label="1"> <text>Identifies the owner of the debt instrument and states from whom and the date on which the owner acquired ownership;</text> </level> <level label="2"> <text>States why a copy of the debt instrument cannot be produced; and</text> </level> <level label="3"> <text>Describes the good faith efforts made to produce a copy of the debt instrument.</text> </level> </level> <level label="g"> <text>Only for purposes of a final loss mitigation affidavit that is filed with an order to docket or complaint to foreclose, a loss mitigation analysis is not considered complete if the reason for the denial or determination of ineligibility is due to the inability of the secured party to:</text> <level label="1"> <text>Establish communication with the mortgagor or grantor; or</text> </level> <level label="2"> <text>Obtain all documentation and information necessary to conduct the loss mitigation analysis.</text> </level> </level> <level label="h"> <level label="1"> <text>A copy of the order to docket or complaint to foreclose on residential property and all other papers filed with it in the form and sequence as prescribed by regulations adopted by the Commissioner of Financial Regulation, accompanied by the documents required under paragraphs (2), (3), and (4) of this subsection, shall be served on the mortgagor or grantor by:</text> <level label="i"> <text>Personal delivery of the papers to the mortgagor or grantor; or</text> </level> <level label="ii"> <text>Leaving the papers with a resident of suitable age and discretion at the mortgagor’s or grantor’s dwelling house or usual place of abode.</text> </level> </level> <level label="2"> <text>The service of documents under paragraph (1) of this subsection shall be accompanied by a separate, clearly marked notice, in the form prescribed by regulation adopted by the Commissioner of Financial Regulation, that states:</text> <level label="i"> <text>The significance of the order to docket or a complaint to foreclose;</text> </level> <level label="ii"> <text>The options for the mortgagor or grantor to take, including housing counseling services and financial assistance resources the mortgagor or grantor may consult; and</text> </level> <level label="iii"> <text>In the case of a mortgagor or grantor who has participated in prefile mediation, that the mortgagor or grantor is not entitled to postfile mediation except as otherwise provided in the prefile mediation agreement.</text> </level> </level> <level label="3"> <text>If the order to docket or complaint to foreclose is accompanied by a preliminary loss mitigation affidavit, the service of documents under paragraph (1) of this subsection shall be accompanied by a loss mitigation application form and any other supporting documents as prescribed by regulation adopted by the Commissioner of Financial Regulation.</text> </level> <level label="4"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, if the order to docket or complaint to foreclose is accompanied by a final loss mitigation affidavit and concerns owner–occupied residential property, the service of documents under paragraph (1) of this subsection shall be accompanied by a request for postfile mediation form and any other supporting documents as prescribed by regulation adopted by the Commissioner of Financial Regulation.</text> </level> <level label="ii"> <text>The order to docket or complaint to foreclose may exclude the request for postfile mediation form if:</text> <level label="1"> <text>The mortgagor or grantor has participated in prefile mediation and the prefile mediation agreement does not give the mortgagor or grantor the right to participate in postfile mediation; or</text> </level> <level label="2"> <text>The property subject to the mortgage or deed of trust is not owner–occupied.</text> </level> </level> </level> <level label="5"> <text>If at least two good faith efforts to serve the mortgagor or grantor under paragraph (1) of this subsection on different days have not succeeded, the plaintiff may effect service by:</text> <level label="i"> <text>Filing an affidavit with the court describing the good faith efforts to serve the mortgagor or grantor; and</text> </level> <level label="ii"> <level label="1"> <text>Mailing a copy of all the documents required to be served under paragraph (1) of this subsection by certified mail, return receipt requested, and first–class mail to the mortgagor’s or grantor’s last known address and, if different, to the address of the residential property subject to the mortgage or deed of trust; and</text> </level> <level label="2"> <text>Posting a copy of all the documents required to be served under paragraph (1) of this subsection in a conspicuous place on the residential property subject to the mortgage or deed of trust.</text> </level> </level> </level> <level label="6"> <text>The individual making service of documents under this subsection shall file proof of service with the court in accordance with the Maryland Rules.</text> </level> </level> <level label="i"> <level label="1"> <text>If the order to docket or complaint to foreclose is accompanied by a preliminary loss mitigation affidavit, the secured party, at least 30 days before the date of a foreclosure sale, shall:</text> <level label="i"> <text>File with the court a final loss mitigation affidavit in the form prescribed by regulation adopted by the Commissioner of Financial Regulation; and</text> </level> <level label="ii"> <text>Send to the mortgagor or grantor by first class and by certified mail:</text> <level label="1"> <text>A copy of the final loss mitigation affidavit; and</text> </level> <level label="2"> <text>A request for postfile mediation form and supporting documents as provided under subsection (h)(4) of this section.</text> </level> </level> </level> <level label="2"> <text>A final loss mitigation affidavit shall be filed under this subsection no earlier than 28 days after the order to docket or complaint to foreclose is served on the mortgagor or grantor.</text> </level> </level> <level label="j"> <level label="1"> <level label="i"> <text>This paragraph applies to a mortgagor or grantor who:</text> <level label="1"> <text>Has not participated in prefile mediation; or</text> </level> <level label="2"> <text>Has participated in prefile mediation that resulted in a prefile mediation agreement that gives the mortgagor or grantor the right to participate in postfile mediation.</text> </level> </level> <level label="ii"> <text>In a foreclosure action on owner–occupied residential property, the mortgagor or grantor may file with the court a completed request for postfile mediation not later than:</text> <level label="1"> <text>If the final loss mitigation affidavit was delivered along with service of the copy of the order to docket or complaint to foreclose under subsection (h) of this section, 25 days after that service on the mortgagor or grantor; or</text> </level> <level label="2"> <text>If the final loss mitigation affidavit was mailed as provided in subsection (i) of this section, 25 days after the mailing of the final loss mitigation affidavit.</text> </level> </level> <level label="iii"> <level label="1"> <text>A request for postfile mediation shall be accompanied by a filing fee of $50.</text> </level> <level label="2"> <text>The court may reduce or waive the filing fee under subsubparagraph 1 of this subparagraph if the mortgagor or grantor is eligible for a reduction or waiver under the Maryland Legal Services guidelines.</text> </level> </level> <level label="iv"> <text>The mortgagor or grantor shall mail a copy of the request for postfile mediation to the secured party’s foreclosure attorney.</text> </level> </level> <level label="2"> <level label="i"> <text>The secured party may file a motion to strike the request for postfile mediation in accordance with the Maryland Rules.</text> </level> <level label="ii"> <text>The motion to strike must be accompanied by an affidavit that sets forth the reasons why postfile mediation is not appropriate.</text> </level> <level label="iii"> <text>The secured party shall mail a copy of the motion to strike and the accompanying affidavit to the mortgagor or grantor.</text> </level> <level label="iv"> <text>There is a presumption that a mortgagor or grantor is entitled to postfile mediation with respect to owner–occupied residential property unless:</text> <level label="1"> <text>Good cause is shown why postfile mediation is not appropriate; or</text> </level> <level label="2"> <text>The mortgagor or grantor participated in prefile mediation and the prefile mediation agreement does not give the mortgagor or grantor the right to participate in postfile mediation.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>The mortgagor or grantor may file a response to the motion to strike within 15 days.</text> </level> <level label="ii"> <text>The mortgagor or grantor shall mail a copy of the response to the foreclosure attorney.</text> </level> <level label="iii"> <text>If the court grants the motion to strike, the court shall instruct the Office of Administrative Hearings to cancel any scheduled postfile mediation.</text> </level> </level> </level> <level label="k"> <level label="1"> <text>Within 5 days after receipt of a request for postfile mediation, the court shall transmit the request to the Office of Administrative Hearings for scheduling.</text> </level> <level label="2"> <level label="i"> <text>Within 60 days after transmittal of the request for foreclosure mediation, the Office of Administrative Hearings shall conduct a foreclosure mediation.</text> </level> <level label="ii"> <text>For good cause, the Office of Administrative Hearings may extend the time for completing the foreclosure mediation for a period not exceeding 30 days or, if all parties agree, for a longer period of time.</text> </level> </level> <level label="3"> <text>The Office of Administrative Hearings shall send notice of the scheduled foreclosure mediation to the foreclosure attorney, the secured party, and the mortgagor or grantor.</text> </level> <level label="4"> <text>The notice from the Office of Administrative Hearings shall:</text> <level label="i"> <text>Include instructions regarding the documents and information, as required by regulations adopted by the Commissioner of Financial Regulation, that must be provided by each party to the other party and to the mediator; and</text> </level> <level label="ii"> <text>Require the information and documents to be provided no later than 20 days before the scheduled date of the foreclosure mediation.</text> </level> </level> </level> <level label="l"> <level label="1"> <level label="i"> <text>By regulation, the Commissioner of Financial Regulation shall establish a mediation checklist that describes the matters that shall be reviewed and considered in a postfile mediation.</text> </level> <level label="ii"> <text>At the commencement of a postfile mediation session, each party shall review the mediation checklist.</text> </level> <level label="iii"> <text>The mediator shall mark each item on the mediation checklist as the item is addressed at the postfile mediation session.</text> </level> <level label="iv"> <text>At the conclusion of a postfile mediation session, each party shall sign the mediation checklist.</text> </level> </level> <level label="2"> <text>At a foreclosure mediation:</text> <level label="i"> <text>The mortgagor or grantor shall be present;</text> </level> <level label="ii"> <text>The mortgagor or grantor may be accompanied by a housing counselor and may have legal representation;</text> </level> <level label="iii"> <text>The secured party, or a representative of the secured party, shall be present; and</text> </level> <level label="iv"> <text>Any representative of the secured party must have the authority to settle the matter or be able to readily contact a person with authority to settle the matter.</text> </level> </level> <level label="3"> <text>At the foreclosure mediation, the parties and the mediator shall address loss mitigation programs that may be applicable to the loan secured by the mortgage or deed of trust that is the subject of the foreclosure action.</text> </level> <level label="4"> <text>The Office of Administrative Hearings shall file a report with the court that states the outcome of the request for foreclosure mediation within the earlier of:</text> <level label="i"> <text>7 days after a foreclosure mediation is held; or</text> </level> <level label="ii"> <text>The end of the 60–day mediation period specified in subsection (k)(2) of this section, plus any extension granted by the Office of Administrative Hearings.</text> </level> </level> <level label="5"> <text>Except for a request for postponement or a failure to appear, the rules of procedure for contested cases of the Office of Administrative Hearings do not govern a foreclosure mediation conducted by the Office.</text> </level> </level> <level label="m"> <level label="1"> <text>If the parties do not reach an agreement at the postfile mediation, or the 60–day mediation period expires without an extension granted by the Office of Administrative Hearings, the foreclosure attorney may schedule the foreclosure sale.</text> </level> <level label="2"> <level label="i"> <text>In the case of postfile mediation, subject to subparagraphs (ii) and (iii) of this paragraph, the mortgagor or grantor may file a motion to stay the foreclosure sale.</text> </level> <level label="ii"> <text>A motion to stay under this paragraph shall be filed within 15 days after:</text> <level label="1"> <text>The date the postfile mediation is held; or</text> </level> <level label="2"> <text>If no postfile mediation is held, the date the Office of Administrative Hearings files its report with the court.</text> </level> </level> <level label="iii"> <text>A motion to stay under this paragraph must allege specific reasons why loss mitigation should have been granted.</text> </level> </level> <level label="3"> <text>Nothing in this subtitle precludes the mortgagor or grantor from pursuing any other remedy or legal defense available to the mortgagor or grantor.</text> </level> </level> <level label="n"> <text>A foreclosure sale of residential property may not occur until:</text> <level label="1"> <text>If the residential property is not owner–occupied residential property, at least 45 days after service of process is made under subsection (h) of this section;</text> </level> <level label="2"> <text>If the residential property is owner–occupied residential property and foreclosure mediation is not held, the later of:</text> <level label="i"> <text>At least 45 days after service of process that includes a final loss mitigation affidavit made under subsection (h) of this section; or</text> </level> <level label="ii"> <text>At least 30 days after a final loss mitigation affidavit is mailed under subsection (i) of this section; and</text> </level> </level> <level label="3"> <text>If the residential property is owner–occupied residential property and postfile mediation is requested, at least 15 days after:</text> <level label="i"> <text>The date the postfile mediation is held; or</text> </level> <level label="ii"> <text>If no postfile mediation is held, the date the Office of Administrative Hearings files its report with the court.</text> </level> </level> </level> <level label="n–1"> <level label="1"> <text>If a certified community development financial institution makes an offer to a secured party to purchase owner–occupied residential property for the purpose of transferring the property to the immediately preceding mortgagor or grantor, no person may require, as a condition of a sale or transfer of the property to the certified community development financial institution, any affidavit, statement, agreement, or addendum that limits ownership or occupancy of the property by the immediately preceding mortgagor or grantor.</text> </level> <level label="2"> <text>Any affidavit, statement, agreement, or addendum that limits ownership or occupancy of owner–occupied residential property by the immediately preceding mortgagor or grantor:</text> <level label="i"> <text>May not serve as a basis to avoid a sale or transfer of the property to a certified community development financial institution; and</text> </level> <level label="ii"> <text>Is unenforceable against any person named in the affidavit, statement, agreement, or addendum.</text> </level> </level> </level> <level label="o"> <text>Notice of the time, place, and terms of a foreclosure sale shall be published in a newspaper of general circulation in the county where the action is pending at least once a week for 3 successive weeks, the first publication to be not less than 15 days before the sale and the last publication to be not more than 1 week before the sale.</text> </level> <level label="p"> <level label="1"> <text>The mortgagor or grantor of residential property has the right to cure the default by paying all past due payments, penalties, and fees and reinstate the loan at any time up to 1 business day before the foreclosure sale occurs.</text> </level> <level label="2"> <text>The secured party or an authorized agent of the secured party shall, on request, provide to the mortgagor or grantor or the mortgagor’s or grantor’s attorney within a reasonable time the amount necessary to cure the default and reinstate the loan and instructions for delivering the payment.</text> </level> </level> <level label="q"> <text>An action for failure to comply with the provisions of this section shall be brought within 3 years after the date of the order ratifying the sale.</text> </level> <level label="r"> <text>Revenue collected from the filing fees required under subsections (e)(2)(ix) and (j)(1)(iii) of this section shall be distributed to the Housing Counseling and Foreclosure Mediation Fund established under § 4–507 of the Housing and Community Development Article.</text> </level> <level label="s"> <text>The Commissioner of Financial Regulation may adopt additional regulations necessary to carry out the requirements of this section.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-105.2" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Foreclosed Property Registry” means the Foreclosed Property Registry established by the Commissioner of Financial Regulation under § 7–105.14 of this subtitle.</text> </level> <level label="3"> <text>“Local jurisdiction” means:</text> <level label="i"> <text>A county; or</text> </level> <level label="ii"> <text>A municipal corporation.</text> </level> </level> <level label="4"> <text>“Notice of foreclosure” means the notice described in subsection (b) of this section.</text> </level> <level label="5"> <text>“Person authorized to make the sale” means the person designated under the Maryland Rules to sell residential property subject to foreclosure.</text> </level> <level label="6"> <text>“Residential property” means real property improved by four or fewer dwelling units that are designed principally and are intended for human habitation.</text> </level> </level> <level label="b"> <level label="1"> <text>Within 7 days of the filing of an order to docket or a complaint to foreclose a mortgage or deed of trust on a residential property by a person authorized to make the sale of the residential property, the person authorized to make the sale shall provide the Commissioner of Financial Regulation with a notice of foreclosure as required under this subsection.</text> </level> <level label="2"> <text>The notice of foreclosure shall:</text> <level label="i"> <text>Be in the form the Commissioner of Financial Regulation requires, which may be the form of a registration with the Foreclosed Property Registry; and</text> </level> <level label="ii"> <text>Contain the following information regarding the property that is subject to foreclosure:</text> <level label="1"> <text>The street address;</text> </level> <level label="2"> <text>The tax account number, if known;</text> </level> <level label="3"> <text>Whether the property is vacant, if known;</text> </level> <level label="4"> <text>The name, address, and telephone number of the owner or owners of the property, if known;</text> </level> <level label="5"> <text>The name, address, and telephone number of the person authorized to make the sale; and</text> </level> <level label="6"> <text>The name, address, and telephone number of a person authorized to manage and maintain the property before the foreclosure sale, if known.</text> </level> </level> </level> </level> <level label="c"> <level label="1"> <text>A notice of foreclosure:</text> <level label="i"> <text>Is not a public record as defined in § 4–101 of the General Provisions Article; and</text> </level> <level label="ii"> <text>Is not subject to Title 4 of the General Provisions Article.</text> </level> </level> <level label="2"> <text>The Commissioner of Financial Regulation may authorize access to a notice of foreclosure only to local jurisdictions, the agencies of local jurisdictions, and representatives of State agencies.</text> </level> <level label="3"> <text>Notwithstanding paragraphs (1) and (2) of this subsection, the Commissioner of Financial Regulation or a local jurisdiction may provide information for a specific property described in a notice of foreclosure to:</text> <level label="i"> <text>A person who owns property on the same block; or</text> </level> <level label="ii"> <text>A homeowners association or condominium in which the property is located.</text> </level> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-105.3" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>In addition to any other foreclosure requirements under the law, after the commencement of an action to foreclose a lien on real property and before making a sale of the property subject to the lien, the person authorized to make the sale shall notify the county or municipal corporation where the property subject to the lien is located, not less than 15 days prior to sale, of:</text> <level label="1"> <text>The name, address, and telephone number of the person authorized to make the sale; and</text> </level> <level label="2"> <text>The time, place, and terms of sale.</text> </level> </level> <level label="b"> <text>A county or municipal corporation that receives the notice described under subsection (a) of this section shall notify the person authorized to make the sale of any outstanding liens, charges, taxes, or assessments that the county or municipal corporation has against the property not more than 10 days after receiving the notice of sale.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-105.4" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>In this section, “record owner” means the person holding record title to property as of the later of:</text> <level label="1"> <text>30 days before the day on which a foreclosure sale of the property is actually held; and</text> </level> <level label="2"> <text>The date on which an action to foreclose the mortgage or deed of trust is filed.</text> </level> </level> <level label="b"> <text>In addition to any notice required to be given by provisions of the Annotated Code of Maryland or the Maryland Rules, the person authorized to make a sale in an action to foreclose a mortgage or deed of trust shall give written notice of the proposed sale to:</text> <level label="1"> <text>The record owner of the property to be sold; and</text> </level> <level label="2"> <text>A condominium or homeowners association that, at least 30 days before the date of the proposed sale, has recorded a statement of lien against the property under the Maryland Contract Lien Act.</text> </level> </level> <level label="c"> <level label="1"> <text>The written notice shall be sent:</text> <level label="i"> <text>By certified mail, postage prepaid, return receipt requested, bearing a postmark from the United States Postal Service, to the record owner and, if applicable, to a condominium or homeowners association at the address shown on the statement of lien; and</text> </level> <level label="ii"> <text>By first–class mail.</text> </level> </level> <level label="2"> <text>The notice shall state the time, place, and terms of the sale and shall be sent not earlier than 30 days and not later than 10 days before the date of sale.</text> </level> <level label="3"> <text>The person giving the notice shall file in the proceedings:</text> <level label="i"> <text>A return receipt; or</text> </level> <level label="ii"> <text>An affidavit that:</text> <level label="1"> <text>The provisions of this subsection have been complied with; or</text> </level> <level label="2"> <text>The address of the record owner is not reasonably ascertainable.</text> </level> </level> </level> <level label="4"> <text>The person authorized to make a sale in an action to foreclose a mortgage or deed of trust is not required to give notice to a record owner whose address is not reasonably ascertainable.</text> </level> </level> <level label="d"> <text>In the event of postponement or cancellation of the sale, which may be done in the discretion of the trustee, the trustee shall, within 14 days after the postponement or cancellation, send a notice that the sale was postponed or canceled to the record owner and, if applicable, to a condominium or homeowners association to which notice of the proposed sale was sent under subsection (c) of this section, by first–class mail, postage prepaid.</text> </level> <level label="e"> <text>The right of a record owner to file an action for the failure of the person authorized to make a sale in an action to foreclose a mortgage or deed of trust to comply with the provisions of this section shall expire 3 years after the date of the order ratifying the foreclosure sale.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-105.5" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>In this section, “holder of a subordinate interest” includes any condominium council of unit owners or homeowners association that has filed a request for notice of sale under subsection (c) of this section.</text> </level> <level label="b"> <text>The person authorized to make a sale in an action to foreclose a mortgage or deed of trust shall give written notice of any proposed foreclosure sale to the holder of any subordinate mortgage, deed of trust, or other subordinate interest, including a judgment, in accordance with § 7–105.4 of this subtitle and the requirements of Maryland Rule 14–210.</text> </level> <level label="c"> <level label="1"> <text>The land records office of each county shall maintain a current listing of recorded requests for notice of sale by holders of subordinate mortgages, deeds of trust, or other subordinate interests.</text> </level> <level label="2"> <text>The holder of a subordinate mortgage, deed of trust, or other subordinate interest may file a request for notice under this subsection.</text> </level> <level label="3"> <text>Each request for notice of sale shall:</text> <level label="i"> <text>Be recorded in a separate paper or electronic index which shall be indexed under the name of the holder of the superior mortgage or deed of trust and under the book and page numbers where the superior mortgage or deed of trust is recorded;</text> </level> <level label="ii"> <text>Identify the property in which the subordinate interest is held;</text> </level> <level label="iii"> <text>State the name and address of the holder of the subordinate interest; and</text> </level> <level label="iv"> <text>Identify the superior mortgage or deed of trust by stating:</text> <level label="1"> <text>The names of the original parties to the superior mortgage or deed of trust;</text> </level> <level label="2"> <text>The date the superior mortgage or deed of trust was recorded; and</text> </level> <level label="3"> <text>The office, docket or book, and page where the superior mortgage or deed of trust is recorded.</text> </level> </level> </level> <level label="4"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, failure of a holder of a subordinate mortgage, deed of trust, or other subordinate interest to record a request for notice under this subsection does not affect the duty of a holder of a superior interest to provide notice as required under this section.</text> </level> <level label="ii"> <text>A holder of a superior interest does not have a duty to provide notice to a condominium council of unit owners or homeowners association that has not filed a request for notice under this subsection.</text> </level> </level> </level> <level label="d"> <text>The person giving notice under this section shall file in the action:</text> <level label="1"> <text>The return receipt from the notice; or</text> </level> <level label="2"> <text>An affidavit that:</text> <level label="i"> <text>The notice provisions of this section have been complied with; or</text> </level> <level label="ii"> <text>The address of the holder of the subordinate interest is not reasonably ascertainable.</text> </level> </level> </level> <level label="e"> <text>The person authorized to make a sale in an action to foreclose a mortgage or deed of trust is not required to give notice to the holder of a subordinate mortgage, deed of trust, or other subordinate interest if:</text> <level label="1"> <text>The existence of the mortgage, deed of trust, or other subordinate interest is not reasonably ascertainable;</text> </level> <level label="2"> <text>The identity or address of the holder of the mortgage, deed of trust, or other subordinate interest is not reasonably ascertainable;</text> </level> <level label="3"> <text>With respect to a recorded or filed subordinate mortgage, deed of trust, or other recorded or filed subordinate interest, the recordation or filing occurred after the later of:</text> <level label="i"> <text>30 days before the day on which the foreclosure sale was actually held; and</text> </level> <level label="ii"> <text>The date the action to foreclose the mortgage or deed of trust was filed;</text> </level> </level> <level label="4"> <text>With respect to an unrecorded or unfiled subordinate mortgage, deed of trust, or other unrecorded or unfiled subordinate interest, the subordinate interest was created after the later of:</text> <level label="i"> <text>30 days before the day on which the foreclosure sale was actually held; and</text> </level> <level label="ii"> <text>The date the action to foreclose the mortgage or deed of trust was filed; or</text> </level> </level> <level label="5"> <text>With respect to a condominium council of unit owners or homeowners association, the condominium council of unit owners or homeowners association has not filed a request for notice under subsection (c) of this section.</text> </level> </level> <level label="f"> <text>The right of a holder of a subordinate mortgage, deed of trust, or other subordinate interest to file an action for the failure of the person authorized to make a sale in an action to foreclose a mortgage or deed of trust to comply with the provisions of this section shall expire 3 years after the date of the order ratifying the foreclosure sale.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-105.6" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>Absent a provision to the contrary in a mortgage or note secured by a deed of trust, in the enumerated counties, the interest provided in a mortgage or note secured by a deed of trust is payable for the time period provided in subsection (b) of this section or until the audit of the sale is ratified, whichever occurs first.</text> </level> <level label="b"> <text>Under subsection (a) of this section, the time period following sale is:</text> <level label="1"> <text>60 days in Calvert, Cecil, Frederick, Garrett, Kent, Queen Anne’s, Talbot, Caroline, Charles, and St. Mary’s counties; and</text> </level> <level label="2"> <text>180 days in Worcester County.</text> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-105.7" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <text>No title to property acquired at sale of property subject to a mortgage or deed of trust is invalid by reason of the fact that the property was purchased by the secured party, his assignee, or representative, or for his account.</text> </section> <section article="grp" article_name="Real Property" number="7-105.8" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>Except as provided in subsection (b) of this section, any purchaser at a foreclosure sale of a mortgage or deed of trust has the same rights and remedies against the tenants of the mortgagor or grantor as the mortgagor or grantor had, and the tenants have the same rights and remedies against the purchaser as they would have had against the mortgagor or grantor on the date the mortgage or deed of trust was recorded.</text> </level> <level label="b"> <level label="1"> <text>For purposes of this subsection, a lease or tenancy shall be considered “bona fide” only if:</text> <level label="i"> <text>The mortgagor or grantor or the child, spouse, or parent of the mortgagor or grantor under the contract is not the tenant;</text> </level> <level label="ii"> <text>The lease or tenancy was the result of an arm’s length transaction; and</text> </level> <level label="iii"> <text>The lease or tenancy requires the receipt of rent that is not substantially less than fair market rent for the property or the unit’s rent is reduced or subsidized due to a federal, State, or local subsidy.</text> </level> </level> <level label="2"> <text>In the case of a foreclosure on any residential property, an immediate successor in interest who has acquired legal title to the property under the foreclosure shall assume the interest subject to:</text> <level label="i"> <text>The provision by the successor in interest of a notice to vacate to any bona fide tenant at least 90 days before the effective date of the notice; and</text> </level> <level label="ii"> <text>The rights of any bona fide tenant as of the date of transfer of legal title under the foreclosure:</text> <level label="1"> <text>Except as provided in paragraph (3) of this subsection, under a bona fide lease entered into before the transfer of legal title, to occupy the premises until the end of the remaining term of the lease; or</text> </level> <level label="2"> <text>Without a lease or with a lease terminable at will under State law, subject to the receipt by the tenant of the notice required under item (i) of this paragraph.</text> </level> </level> </level> <level label="3"> <text>Subject to the receipt by the tenant of the notice to vacate under paragraph (2)(i) of this subsection, a successor in interest may terminate a lease effective on the date of the sale of the residential property to a purchaser who will occupy the property as the purchaser’s primary residence.</text> </level> <level label="4"> <text>The notice required under paragraph (2)(i) of this subsection shall:</text> <level label="i"> <text>Be in writing;</text> </level> <level label="ii"> <text>Be sent by first–class and certified mail, return receipt requested;</text> </level> <level label="iii"> <text>State the date on which the notice is being given;</text> </level> <level label="iv"> <text>State the date on which the termination of the tenancy is effective; and</text> </level> <level label="v"> <text>State whether the basis for termination of the tenancy is:</text> <level label="1"> <text>Expiration of the term of the lease;</text> </level> <level label="2"> <text>Sale of the property to a purchaser who will occupy the property as the purchaser’s primary residence; or</text> </level> <level label="3"> <text>Termination of a month–to–month or other terminable–at–will tenancy.</text> </level> </level> </level> <level label="5"> <text>This section does not affect the requirements for termination of any federal– or State–subsidized tenancy or of any State or local law that provides longer time periods or additional protection for tenants.</text> </level> </level> <level label="c"> <level label="1"> <text>If the required advertisement of sale so discloses, a foreclosure sale shall be made subject to one or more of the tenancies entered into subsequent to the recording of the mortgage or deed of trust or otherwise subordinated thereto.</text> </level> <level label="2"> <text>Any lease so continuing is unaffected by the sale, except the purchaser shall become the landlord, as of the date of the sale, on ratification of the sale.</text> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-105.9" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>Except as provided in this section, unless the mortgage or deed of trust provides otherwise, if any property is encumbered by a mortgage or deed of trust, annual crops planted or cultivated by any debtor or those claiming under him do not pass with the property at any sale under or by virtue of the mortgage or deed of trust, but the crops remain the property of the debtor or those claiming under him.</text> </level> <level label="b"> <level label="1"> <text>Notwithstanding the provisions of subsection (a) of this section, after the sale, the debtor or those claiming under him and the purchaser or those claiming under him may agree on a reasonable rental of the part of the property occupied by the crops.</text> </level> <level label="2"> <text>This rental is a lien on the crops and continues until paid in favor of the purchaser or those claiming under him, and neither the crops nor any part of them may be removed until after payment.</text> </level> <level label="3"> <text>If the parties are unable to agree on the rental, any party in interest may apply to the court having jurisdiction over the sale or the confirmation of it for the appointment of disinterested appraisers to determine the rental, whose award shall be final.</text> </level> </level> <level label="c"> <level label="1"> <text>In addition to any other remedy, the purchaser or those claiming under him, on ascertainment of the rent, may distrain for the rent or any part of it remaining due, as in the case of landlord and tenant.</text> </level> <level label="2"> <text>No provision of this section is intended to interfere with the right of the purchaser or those claiming under him to have possession of the property, except as to the part occupied by the crop, with necessary ingress or egress.</text> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-105.10" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <text>The entry of an order for resale on default by a purchaser at a sale under §§ 7–105 through 7–105.9 of this subtitle and Title 14 of the Maryland Rules:</text> <level label="1"> <text>Does not affect the prior ratification of the sale and does not restore to the mortgagor or former record owner any right or remedy that was extinguished by the prior sale and its ratification; and</text> </level> <level label="2"> <text>Extinguishes all interest of the defaulting purchaser in the real property being foreclosed and in the proceeds of the resale.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-105.11" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Bona fide tenant” means a tenant under a lease or tenancy described in § 7–105.8(b)(1) of this subtitle.</text> </level> <level label="3"> <text>“Residential property” has the meaning stated in § 7–105.1 of this subtitle.</text> </level> </level> <level label="b"> <level label="1"> <text>In addition to any other notice required to be given by this Code or the Maryland Rules, the person authorized to make a sale in an action to foreclose a mortgage or deed of trust on residential property shall send, at the same time as the notice required under § 7–105.1(h)(2) of this subtitle, a written notice addressed to “all occupants” at the address of the residential property in substantially the following form:</text> <text>“IMPORTANT NOTICE</text> <text>A foreclosure action has been filed against the property located at (insert address) in the circuit court for (insert name of county). This notice is being sent to you as a person who lives in this property. </text> <text>A foreclosure sale of the property may occur at any time after 45 days from the date of this notice. </text> <text>Most renters have the right to continue renting the property after it is sold at foreclosure. The foreclosure sale purchaser becomes the new landlord.</text> <text>Most renters with a lease for a specific period of time have the right to continue renting the property until the end of the lease term. Most month–to–month renters have the right to continue renting the property for 90 days after receiving a written notice to vacate from the new owner.</text> <text>You should get legal advice to determine if you have these rights. </text> <text>Below you will find the name, address, and telephone number of the person authorized to sell the property. You may contact this person to notify him or her that you are a tenant at the property and to find out more about the sale. For further information, you may review the file in the office of the clerk of the circuit court. You also may contact the Maryland Department of Housing and Community Development, at (insert telephone number), or consult the Department’s website, (insert website address), for assistance.</text> <text>Person authorized to sell the property:</text> <text>__________________________________________</text> <text>Name</text> <text>__________________________________________</text> <text>Address</text> <text>___________________________________________</text> <text>Telephone</text> <text>___________________________________________</text> <text>Date of this notice”.</text> </level> <level label="2"> <text>The written notice required by this subsection shall be:</text> <level label="i"> <text>A separate document;</text> </level> <level label="ii"> <text>Printed in at least 12 point type; and</text> </level> <level label="iii"> <text>Sent by first–class mail.</text> </level> </level> <level label="3"> <text>The outside of the envelope containing the written notice required by this subsection shall state, on the address side, in bold, capitalized letters in at least 12 point type, the following: “IMPORTANT NOTICE TO ALL OCCUPANTS: FORECLOSURE INFORMATION ENCLOSED. OPEN IMMEDIATELY.”.</text> </level> </level> <level label="c"> <level label="1"> <text>In addition to any other notice required to be given by this Code or the Maryland Rules, the person authorized to make a sale in an action to foreclose a mortgage or deed of trust on residential property shall send a written notice of the sale not earlier than 30 days and not later than 10 days before the date of sale addressed to “all occupants” at the address of the residential property in substantially the following form:</text> <text>“NOTICE OF IMPENDING FORECLOSURE SALE</text> <text>A foreclosure action has been filed against the property located at (insert address) in the circuit court for (insert name of county). This notice is being sent to you as a person who lives in this property. </text> <text>A foreclosure sale of the property is scheduled to occur as follows:</text> <text>Date: ____________</text> <text>Time: _____________</text> <text>Place:______________</text> <text>Most renters have the right to continue renting the property after it is sold at foreclosure. The foreclosure sale purchaser becomes the new landlord. </text> <text>Most renters with a lease for a specific period of time have the right to continue renting the property until the end of the lease term. Most month–to–month renters have the right to continue renting the property for 90 days after receiving a written notice to vacate from the new owner.</text> <text>You should get legal advice to determine if you have these rights. </text> <text>Below you will find the name, address, and telephone number of the person authorized to sell the property. You may contact this person to notify him or her that you are a tenant at the property and to find out more about the sale. For further information, you may review the file in the office of the clerk of the circuit court. You also may contact the Maryland Department of Housing and Community Development, at (insert telephone number), or consult the Department’s website, (insert website address), for assistance.</text> <text>Person authorized to sell the property:</text> <text>__________________________________________</text> <text>Name</text> <text>__________________________________________</text> <text>Address</text> <text>___________________________________________</text> <text>Telephone</text> <text>___________________________________________</text> <text>Date of this notice”.</text> </level> <level label="2"> <text>The written notice required by this subsection shall be:</text> <level label="i"> <text>A separate document;</text> </level> <level label="ii"> <text>Printed in at least 12 point type; and</text> </level> <level label="iii"> <text>Sent by first–class mail.</text> </level> </level> <level label="3"> <text>The outside of the envelope containing the written notice required by this subsection shall state, on the address side, in bold, capitalized letters in at least 12 point type, the following: “IMPORTANT NOTICE TO ALL OCCUPANTS: FORECLOSURE INFORMATION ENCLOSED. OPEN IMMEDIATELY.”.</text> </level> </level> <level label="d"> <level label="1"> <text>In addition to any other notice required to be given by this Code or the Maryland Rules, the person who purchases residential property in a foreclosure sale shall send, after the entry of a judgment awarding possession and before any attempt to execute the writ of possession, a written notice addressed to “all occupants” at the address of the residential property in substantially the following form:</text> <text>“IMPORTANT EVICTION NOTICE</text> <text>The circuit court for (insert name of county) has entered a judgment awarding possession of the property located at (insert address). YOU COULD BE EVICTED FROM THE PROPERTY ON ANY DAY AFTER (insert first date after which eviction could legally occur under State and local law).</text> <text>Below you will find the name, address, and telephone number of the person who purchased the property or the purchaser’s agent. You may contact this person to find out more about the court order. For further information, you may review the file in the office of the clerk of the circuit court. You may want to consult an attorney to determine your rights. You also may contact the Maryland Department of Housing and Community Development, at (insert telephone number), or consult the Department’s website, (insert website address), for assistance.</text> <text>Purchaser of the property or purchaser’s agent:</text> <text>__________________________________________</text> <text>Name</text> <text>__________________________________________</text> <text>Address</text> <text>___________________________________________</text> <text>Telephone</text> <text>___________________________________________</text> <text>Date of this notice”.</text> </level> <level label="2"> <text>The written notice required by this subsection shall be:</text> <level label="i"> <text>A separate document;</text> </level> <level label="ii"> <text>Printed in at least 12 point type; and</text> </level> <level label="iii"> <text>Sent by first–class mail.</text> </level> </level> <level label="3"> <text>The outside of the envelope containing the written notice required by this subsection shall state, on the address side, in bold, capitalized letters in at least 12 point type, the following: “IMPORTANT NOTICE TO ALL OCCUPANTS: EVICTION INFORMATION ENCLOSED. OPEN IMMEDIATELY.”.</text> </level> </level> <level label="e"> <text>The person giving a notice required by this section shall file in the foreclosure proceeding after each notice is sent an affidavit of compliance with the provisions of this section.</text> </level> <level label="f"> <text>In the event of postponement of the sale, which may be done in the discretion of the person authorized to make the sale, no new or additional notice need be given pursuant to this section.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-105.12" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Bona fide tenant” means a tenant under a lease or tenancy described in § 7–105.8(b)(1) of this subtitle.</text> </level> <level label="3"> <text>“Foreclosure sale purchaser” means any purchaser at a foreclosure sale of a mortgage or deed of trust on residential property.</text> </level> <level label="4"> <text>“Residential property” has the meaning stated in § 7–105.1(a)(12) of this subtitle.</text> </level> </level> <level label="b"> <text>A foreclosure sale purchaser may not exercise any right to collect rent payments from a bona fide tenant in possession of a residential property unless the purchaser:</text> <level label="1"> <text>Conducts a reasonable inquiry as required under Maryland Rule 14–102 into:</text> <level label="i"> <text>The occupancy status of the residential property; and</text> </level> <level label="ii"> <text>Whether any individual in possession of the residential property is a bona fide tenant; and</text> </level> </level> <level label="2"> <text>Serves on each bona fide tenant, by first–class mail with a certificate of mailing a notice that:</text> <level label="i"> <text>Contains the name, address, and phone number of the purchaser or the agent of the purchaser who is responsible for managing and maintaining the residential property; and</text> </level> <level label="ii"> <text>States that rent payments must be directed to the purchaser or the agent identified in item (i) of this item.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a foreclosure sale purchaser waives any claim to rent payments from a bona fide tenant in possession of a residential property for any period of time before the purchaser satisfies the requirements under subsection (b) of this section.</text> </level> <level label="2"> <text>A foreclosure sale purchaser does not waive any claim to rent due and payable for use of the residential property for the 15 days immediately prior to the date that the purchaser satisfied the requirements under subsection (b) of this section.</text> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-105.13" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Certificate of property unfit for human habitation” means:</text> <level label="i"> <text>In Baltimore City, a certificate of substantial repair; or</text> </level> <level label="ii"> <text>A certificate for residential property issued by a unit of a county or municipal corporation indicating that the county or municipal corporation has determined that the residential property is unfit for human habitation.</text> </level> </level> <level label="3"> <text>“Certificate of vacancy” means a certificate for a residential property issued by a unit of a county or municipal corporation indicating that the residential property is vacant.</text> </level> </level> <level label="b"> <text>This section applies only to a county or municipal corporation that issues a certificate of vacancy or a certificate of property unfit for human habitation.</text> </level> <level label="c"> <text>If a mortgage or deed of trust on residential property is in default, a person with a secured interest in the residential property may request that a county or municipal corporation issue a certificate of vacancy or a certificate of property unfit for human habitation.</text> </level> <level label="d"> <level label="1"> <text>The county or municipal corporation shall issue to a secured party a certificate of vacancy for a residential property if the county or municipal corporation determines that the residential property is vacant.</text> </level> <level label="2"> <text>The county or municipal corporation shall issue to a secured party a certificate of property unfit for human habitation for a residential property if the county or municipal corporation determines in accordance with requirements of local, county, or State housing codes, that the residential property is unfit for human habitation.</text> </level> <level label="3"> <text>A certificate of vacancy or certificate of property unfit for human habitation issued under this subsection is valid for 60 days after the date the certificate is issued.</text> </level> <level label="4"> <text>A county or municipal corporation may charge a fee not exceeding $100 to a secured party to issue a certificate of vacancy or a certificate of property unfit for human habitation.</text> </level> </level> <level label="e"> <text>Except as provided in subsection (f) of this section, if a certificate of vacancy or certificate of property unfit for human habitation is valid at the time of filing an order to docket or complaint to foreclose, § 7–105.1 of this subtitle does not apply to an action to foreclose a mortgage or deed of trust on the property for which the certificate was issued.</text> </level> <level label="f"> <level label="1"> <text>The record owner or occupant of a property may challenge the certificate of vacancy or certificate of property unfit for human habitation under this section by notifying the circuit court of the challenge.</text> </level> <level label="2"> <text>A secured party filing an order to docket or complaint to foreclose based on a certificate of vacancy or a certificate of property unfit for human habitation under this section shall serve the foreclosure documents in accordance with § 7–105.1(h)(1) of this subtitle along with a description of the procedure to challenge the certificate and the form to be used to make the challenge.</text> </level> <level label="3"> <text>If a challenge under paragraph (1) of this subsection is upheld, the secured party shall comply with the requirements of § 7–105.1 of this subtitle.</text> </level> </level> <level label="g"> <text>A county or municipal corporation may establish procedures governing the issuance of a certificate of vacancy or certificate of property unfit for human habitation under this section.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-105.14" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Foreclosed Property Registry” means the Foreclosed Property Registry established by the Commissioner of Financial Regulation under subsection (b) of this section.</text> </level> <level label="3"> <text>“Foreclosure purchaser” means the person identified as the purchaser on the report of sale required by Maryland Rule 14–305 for a foreclosure sale of residential property.</text> </level> <level label="4"> <text>“Fund” means the Foreclosed Property Registry Fund established by the Commissioner of Financial Regulation under subsection (i) of this section.</text> </level> <level label="5"> <text>“Local jurisdiction” means:</text> <level label="i"> <text>A county; or</text> </level> <level label="ii"> <text>A municipal corporation.</text> </level> </level> <level label="6"> <text>“Residential property” means real property improved by four or fewer dwelling units that are designed principally and are intended for human habitation.</text> </level> </level> <level label="b"> <text>The Commissioner of Financial Regulation shall establish and maintain an Internet–based Foreclosed Property Registry for information relating to foreclosure sales of residential property.</text> </level> <level label="c"> <text>At the time of a foreclosure sale of residential property, the person responsible for conducting the foreclosure shall obtain from the foreclosure purchaser a written acknowledgment of the requirements of this section.</text> </level> <level label="d"> <level label="1"> <text>Within 30 days after a foreclosure sale of residential property, a foreclosure purchaser shall submit an initial registration to the Foreclosed Property Registry.</text> </level> <level label="2"> <text>The initial registration shall:</text> <level label="i"> <text>Be in the form the Commissioner of Financial Regulation requires; and</text> </level> <level label="ii"> <text>Contain the following information:</text> <level label="1"> <text>The name, telephone number, and address of the foreclosure purchaser;</text> </level> <level label="2"> <text>The street address of the property that is the subject of the foreclosure sale;</text> </level> <level label="3"> <text>The date of the foreclosure sale;</text> </level> <level label="4"> <text>Whether the property is a single–family or multifamily property;</text> </level> <level label="5"> <text>The name and address of the person, including a substitute purchaser, who is authorized to accept legal service for the foreclosure purchaser;</text> </level> <level label="6"> <text>To the best of the foreclosure purchaser’s knowledge at the time of registration:</text> </level> <level label="A"> <text>Whether the residential property is vacant; and</text> </level> <level label="B"> <text>The name, telephone number, and street address of the person who is responsible for the maintenance of the property; and</text> </level> <level label="7"> <text>Whether the foreclosure purchaser has possession of the property.</text> </level> </level> </level> <level label="3"> <text>Within 30 days after a deed transferring title to the residential property has been recorded, the foreclosure purchaser shall submit a final registration to the Foreclosed Property Registry.</text> </level> <level label="4"> <text>The final registration shall:</text> <level label="i"> <text>Be in the form the Commissioner of Financial Regulation requires; and</text> </level> <level label="ii"> <text>Contain the following information as of the date of final registration:</text> <level label="1"> <text>The name, telephone number, and address of the owner on the deed;</text> </level> <level label="2"> <text>The date of the ratification of the sale; and</text> </level> <level label="3"> <text>The date the deed was recorded.</text> </level> </level> </level> <level label="5"> <text>The Commissioner of Financial Regulation shall establish procedures that require a foreclosure purchaser, after submitting an initial registration, to submit to the Foreclosed Property Registry any change to the information required under paragraph (2)(ii)5 through 7 of this subsection within 21 business days after the change is known to the purchaser.</text> </level> <level label="6"> <text>On receipt through the Foreclosed Property Registry of an initial registration or any change submitted under paragraph (5) of this subsection, the Commissioner of Financial Regulation shall promptly notify, by electronic means, authorized users from the county and, if appropriate, the municipal corporation in which the property is located.</text> </level> </level> <level label="e"> <level label="1"> <text>The filing fees for registering a residential property are:</text> <level label="i"> <text>$50 for an initial registration filed within the time period required under subsection (d)(1) of this section; and</text> </level> <level label="ii"> <text>$100 for an initial registration filed after the time period required under subsection (d)(1) of this section.</text> </level> </level> <level label="2"> <text>There is no fee for a final registration.</text> </level> <level label="3"> <text>A filing fee paid under paragraph (1) of this subsection is nonrefundable.</text> </level> <level label="4"> <text>A local jurisdiction may enact a local law that imposes a civil penalty for failure to register under this section in an amount not exceeding $1,000.</text> </level> </level> <level label="f"> <level label="1"> <text>Subject to paragraph (2) of this subsection, a local jurisdiction that, in accordance with any applicable building code or local ordinance, abates a nuisance on a residential property registered under this section or takes action to maintain a residential property registered under this section may collect the cost associated with the abatement or other action as a charge included on the residential property’s property tax bill.</text> </level> <level label="2"> <level label="i"> <text>The cost associated with an abatement or other action taken under paragraph (1) of this subsection may not be included as a charge on the residential property’s property tax bill unless the local jurisdiction provides advance written notice in accordance with subparagraph (ii) of this paragraph to:</text> <level label="1"> <text>The person identified in the registry who is authorized to accept legal service for the foreclosure purchaser; and</text> </level> <level label="2"> <text>The person identified in the registry who is responsible for the maintenance of the property.</text> </level> </level> <level label="ii"> <text>The notice described in subparagraph (i) of this paragraph shall:</text> <level label="1"> <text>Describe the intended abatement or other action the local jurisdiction intends to take; and</text> </level> <level label="2"> <text>Be provided:</text> </level> <level label="A"> <text>In accordance with the notice provisions of the applicable building code or local ordinance; or</text> </level> <level label="B"> <text>If the applicable building code or local ordinance does not provide for notice, at least 30 days before the local jurisdiction abates the nuisance or takes action to maintain the property.</text> </level> </level> </level> </level> <level label="g"> <level label="1"> <text>The Foreclosed Property Registry:</text> <level label="i"> <text>Is not a public record as defined by § 4–101 of the General Provisions Article; and</text> </level> <level label="ii"> <text>Is not subject to Title 4 of the General Provisions Article.</text> </level> </level> <level label="2"> <text>The Commissioner of Financial Regulation may authorize access to the Foreclosed Property Registry only to local jurisdictions, their agencies, and representatives and State agencies.</text> </level> <level label="3"> <text>Notwithstanding paragraphs (1) and (2) of this subsection, the Commissioner of Financial Regulation or a local jurisdiction may provide information for a specific property in the Foreclosed Property Registry to:</text> <level label="i"> <text>A person who owns property on the same block; or</text> </level> <level label="ii"> <text>A homeowners association or condominium in which the property is located.</text> </level> </level> </level> <level label="h"> <text>Revenue collected from the filing fees required under subsection (e)(1) of this section shall be distributed to the Fund.</text> </level> <level label="i"> <level label="1"> <text>There is a Foreclosed Property Registry Fund in the Office of Financial Regulation.</text> </level> <level label="2"> <text>The purpose of the Fund is to support the development, administration, and maintenance of the Foreclosed Property Registry established under this section.</text> </level> <level label="3"> <text>The Commissioner of Financial Regulation shall administer the Fund.</text> </level> <level label="4"> <level label="i"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="ii"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="5"> <text>The Fund consists of:</text> <level label="i"> <text>Revenue distributed to the Fund under subsection (h) of this section;</text> </level> <level label="ii"> <text>Investment earnings of the Fund;</text> </level> <level label="iii"> <text>Money appropriated in the State budget to the Fund; and</text> </level> <level label="iv"> <text>Any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="6"> <level label="i"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="ii"> <text>Any investment earnings of the Fund shall be paid into the Fund.</text> </level> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-105.15" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>Except as provided in subsection (b) of this section, only the State may enact a law requiring a notice to be filed with a unit of government to register residential properties that are subject to foreclosure.</text> </level> <level label="b"> <text>This section does not restrict or otherwise affect the ability of a unit of government to require a registration or notice to be filed for a purpose other than one relating to foreclosure, even if a property to be identified in the registration or notice is subject to foreclosure.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-105.16" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Instrument of writing” has the meaning stated in § 12–101 of the Tax – Property Article.</text> </level> <level label="3"> <level label="i"> <text>“Residential property” means real property improved by a dwelling unit that is designed principally and is intended for human habitation.</text> </level> <level label="ii"> <text>“Residential property” includes:</text> <level label="1"> <text>A residential condominium unit; and</text> </level> <level label="2"> <text>A unit in a cooperative project, as defined in § 5–6B–01 of the Corporations and Associations Article.</text> </level> </level> </level> <level label="4"> <text>“Tax” has the meaning stated in § 14–801 of the Tax – Property Article.</text> </level> </level> <level label="b"> <text>Except as provided in subsection (c) of this section, if residential property is purchased at a sale in an action to foreclose a mortgage or deed of trust on the residential property, the purchaser shall provide a copy of the court order ratifying the foreclosure sale to the supervisor of assessments for the county in which the residential property is located by the later of:</text> <level label="1"> <text>60 days after the entry of the court order ratifying the foreclosure sale; or</text> </level> <level label="2"> <text>If a motion is filed under Maryland Rule 2–535 before the expiration of the time period set forth in item (1) of this subsection, 30 days after the entry of a court order that resolves the motion without nullifying the ratification order.</text> </level> </level> <level label="c"> <text>Subsection (b) of this section does not apply if:</text> <level label="1"> <text>An instrument of writing transferring the residential property has been recorded in the land records of the county in which the residential property is located before the expiration of the time period set forth in subsection (b) of this section; or</text> </level> <level label="2"> <text>The foreclosure sale is subject to:</text> <level label="i"> <text>A pending appeal of the ratification order;</text> </level> <level label="ii"> <text>A bankruptcy stay; or</text> </level> <level label="iii"> <text>An unexpired right of redemption in favor of the United States or any agency or department of the United States.</text> </level> </level> </level> <level label="d"> <text>The supervisor of assessments shall provide a receipt to the person providing a copy of the ratification order.</text> </level> <level label="e"> <text>If a copy of the ratification order is not provided to the supervisor of assessments as required under subsection (b) of this section, any reduction in property tax received by the residential property because of its status as an owner–occupied principal residence from the date of the entry of the ratification order until the earlier of the receipt by the supervisor of assessments of a copy of the ratification order or the recordation in the land records of an instrument of writing transferring the property to a third party shall remain due and collectable as a property tax under Title 14 of the Tax – Property Article.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-105.17" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Owner–occupied residential property” has the meaning stated in § 7–105.1 of this subtitle.</text> </level> <level label="3"> <text>“Residential property” has the meaning stated in § 7–105.1 of this subtitle.</text> </level> </level> <level label="b"> <text>This section applies to residential property that was owner–occupied residential property at the time an order to docket or complaint to foreclose was filed.</text> </level> <level label="c"> <text>After the final ratification of the auditor’s report following a sale made in accordance with §§ 7–105.1 through 7–105.10 of this subtitle or the Maryland Rules, a secured party or an appropriate party in interest may file a motion for a deficiency judgment if the proceeds of the sale, after deducting all costs and expenses allowed by the court, are insufficient to satisfy the debt and accrued interest.</text> </level> <level label="d"> <text>A motion for deficiency judgment under this section shall be filed within 3 years after the final ratification of the auditor’s report.</text> </level> <level label="e"> <text>The secured party or party in interest shall serve the motion in accordance with the Maryland Rules.</text> </level> <level label="f"> <text>The filing of a motion for deficiency judgment in accordance with this section and the Maryland Rules shall constitute the sole post–ratification remedy available to a secured party or party in interest for breach of a covenant contained in a deed of trust, mortgage, or promissory note that secures or is secured by owner–occupied residential property.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-105.18" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>In this section, “residential property” has the meaning stated in § 7–105.1 of this subtitle.</text> </level> <level label="b"> <level label="1"> <text>A secured party may petition the circuit court for leave to immediately commence an action to foreclose a mortgage or deed of trust on residential property on the basis that the property is vacant and abandoned as provided in this section.</text> </level> <level label="2"> <text>On filing a petition under this section, the secured party shall send a copy of the petition to the mortgagor’s or grantor’s last known address and the record owner of the property by certified mail, return receipt requested, and first–class mail.</text> </level> <level label="3"> <text>The circuit court shall rule on the petition promptly after the petition is filed.</text> </level> </level> <level label="c"> <text>A residential property is vacant and abandoned under this section if all of the following criteria apply to the property:</text> <level label="1"> <text>The court finds that the mortgage or deed of trust on the residential property has been in default for 120 days or more in a condition on which the mortgage or deed of trust provides that a sale may be made;</text> </level> <level label="2"> <text>The court finds that at least three of the circumstances listed in subsection (d) of this section are true as to the property;</text> </level> <level label="3"> <text>No mortgagor or grantor has filed with the court an answer or objection setting forth a defense or objection that, if proven, would preclude the entry of a final judgment and a decree of foreclosure; and</text> </level> <level label="4"> <text>No mortgagor or grantor has filed with the court a written statement that the property is not vacant and abandoned.</text> </level> </level> <level label="d"> <text>The circumstances of a residential property that a court may find are true under subsection (c)(2) of this section are:</text> <level label="1"> <text>Gas, electric, sewer, or water utility services to the property have been disconnected;</text> </level> <level label="2"> <text>Windows or entrances to the structure on the property are boarded up or closed off, or multiple window panes are broken and unrepaired;</text> </level> <level label="3"> <text>Doors to the structure on the property are smashed through, broken off, unhinged, or continuously unlocked;</text> </level> <level label="4"> <text>Junk, litter, trash, debris, or hazardous, noxious, or unhealthy substances or materials have accumulated on the property;</text> </level> <level label="5"> <text>Furnishings, window treatments, or personal items are absent from the structure on the property;</text> </level> <level label="6"> <text>The property is the object of vandalism, loitering, or criminal conduct, or there has been physical destruction or deterioration of the property;</text> </level> <level label="7"> <text>A mortgagor or grantor has made a written statement expressing the intention of all mortgagors or grantors to abandon the property;</text> </level> <level label="8"> <text>There is a determination that no owner or tenant appears to be residing on the property at the time of an inspection of the property by the secured party;</text> </level> <level label="9"> <text>Two or more citations have been issued by a county or municipal corporation against the property for failure to maintain the property and a health and safety issue exists that has not been rectified;</text> </level> <level label="10"> <text>The property has been condemned by a county or municipal corporation; or</text> </level> <level label="11"> <text>Other reasonable indicia of abandonment exist.</text> </level> </level> <level label="e"> <level label="1"> <text>If the court finds that a residential property is vacant and abandoned and the secured party filing a petition for leave to file an action for immediate foreclosure is entitled to judgment, the court shall grant the petition.</text> </level> <level label="2"> <text>Except as provided under subsection (f) of this section, if the court grants the petition under paragraph (1) of this subsection, § 7–105.1 of this subtitle does not apply to an action to foreclose a mortgage or deed of trust on the residential property that is found to be vacant and abandoned.</text> </level> </level> <level label="f"> <level label="1"> <text>A secured party filing an order to docket or complaint to foreclose based on a petition granted by a court under subsection (e)(1) of this section shall serve the foreclosure documents, accompanied by the document required under paragraph (4) of this subsection, by:</text> <level label="i"> <text>Personal delivery of the papers to the mortgagor or grantor; or</text> </level> <level label="ii"> <text>Leaving the papers with a resident of suitable age and discretion at the mortgagor’s or grantor’s dwelling house or usual place of abode.</text> </level> </level> <level label="2"> <text>If at least two good faith efforts on different days to serve the mortgagor or grantor under paragraph (1) of this subsection have not succeeded, the secured party may effect service by:</text> <level label="i"> <text>Filing an affidavit with the court describing the good faith efforts to serve the mortgagor or grantor; and</text> </level> <level label="ii"> <level label="1"> <text>Mailing a copy of all the documents required to be served under paragraph (1) of this subsection by certified mail, return receipt requested, and first–class mail to the mortgagor’s or grantor’s last known address and, if different, to the address of the residential property subject to the mortgage or deed of trust; and</text> </level> <level label="2"> <text>Posting a copy of all the documents required to be served under paragraph (1) of this subsection in a conspicuous place on the residential property subject to the mortgage or deed of trust.</text> </level> </level> </level> <level label="3"> <text>The individual making service of documents under this subsection shall file proof of service with the court in accordance with the Maryland Rules.</text> </level> <level label="4"> <text>The service of documents under paragraph (1) of this subsection shall be accompanied by a separate, clearly marked notice, in the form prescribed by regulations adopted by the Commissioner of Financial Regulation, that states:</text> <level label="i"> <text>The significance of the order to docket or complaint to foreclose; and</text> </level> <level label="ii"> <text>The right of a record owner or occupant of the property to challenge the finding that the residential property is vacant and abandoned.</text> </level> </level> <level label="5"> <level label="i"> <text>A challenge to the finding that the residential property is vacant and abandoned shall be filed with the court in the foreclosure proceeding not later than 20 days after service is made under this subsection.</text> </level> <level label="ii"> <text>If a timely filed challenge under this subsection is upheld, the secured party shall comply with the requirements of § 7–105.1 of this subtitle.</text> </level> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-106" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>No trustee of a deed of trust may charge, demand, or receive any money or any other item of value exceeding $15 for the partial or complete release of the deed of trust unless the fee is specified in the instrument. Any person who violates this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $100.</text> </level> <level label="b"> <level label="1"> <text>Subject to the provisions of paragraph (5) of this subsection a person who has undertaken responsibility for the disbursement of funds in connection with the grant of title to property, shall mail or deliver to the vendor and purchaser in the transaction, the original or a photographic, photostatic, or similarly reproduced copy of the recorded release of any mortgage or deed of trust which the person was obliged to obtain and record with all or part of the funds to be disbursed. If the original or copy of a recorded release is not readily obtainable at the time of recording, the person may mail or deliver to the purchaser or vendor the original or a copy of the court’s recordation receipt for the release, or any other certified court document clearly evidencing the recordation of the release.</text> </level> <level label="2"> <text>The required evidence of a recorded release shall be mailed or delivered to the vendor and purchaser within 30 days from the delivery of the deed granting title to the property. However, if the recording of the release is delayed beyond the 30–day period for causes not attributable to the neglect, omission, or malfeasance of the person responsible for the disbursement of funds, a letter explaining the delay shall be mailed or delivered to the vendor and purchaser within the 30–day period, and the person shall mail or deliver to the vendor and purchaser the required evidence of the recorded release at the earliest opportunity. The person shall follow the procedure of mailing or delivering a letter of explanation every 30 days until the required evidence of a recorded release is mailed or delivered to the purchaser and vendor.</text> </level> <level label="3"> <text>If the person responsible for the disbursement of funds does not comply with the provisions of paragraphs (1) and (2), the vendor, purchaser, or a duly organized bar association of the State may petition a court of equity to order an audit of the accounts maintained by the person for funds received in connection with closing transactions in the State. The petition shall state concisely the facts showing noncompliance and shall be verified. On receipt of the petition, the court shall issue an order to the person to show cause within ten days why the audit should not be conducted. If cause is not shown, the court may order the audit to be conducted. The court may order other relief as it deems appropriate under the circumstances of the case.</text> </level> <level label="4"> <text>Prior to delivery of the deed granting title to the property, the person responsible for the disbursement of funds shall inform the vendor and purchaser in writing of the provisions of this section.</text> </level> <level label="5"> <text>Unless specifically requested to do so by either the purchaser or the vendor, a person responsible for the disbursement of funds in a closing transaction is not required to provide the purchaser or vendor with the required evidence of a recorded release if the person properly disburses all funds entrusted to him in the course of the closing transaction within five days from the date of the delivery of any deed granting title to the property.</text> </level> <level label="6"> <text>The vendor shall bear the cost of reproducing and mailing a recorded release under this section unless the parties otherwise agree.</text> </level> </level> <level label="c"> <level label="1"> <text>If a mortgage or deed of trust remains unreleased of record, the mortgagor or grantor or any interested party is entitled to a presumption that it has been paid if:</text> <level label="i"> <text>12 years have elapsed since the last payment date called for in the instrument or the maturity date as set forth in the instrument or any amendment or modification to the instrument and no continuation statement has been filed;</text> </level> <level label="ii"> <text>The last payment date or maturity date cannot be ascertained from the record, 40 years have elapsed since the date of record of the instrument, and no continuation statement has been filed; or</text> </level> <level label="iii"> <text>One or more continuation statements relating to the instrument have been recorded and 12 years have elapsed since the recordation of the last continuation statement.</text> </level> </level> <level label="2"> <text>Except as otherwise provided by law, if an action has not been brought to enforce the lien of a mortgage or deed of trust within the time provided in paragraph (1) of this subsection and, notwithstanding any other right or remedy available either at law or equity, the lien created by the mortgage or deed of trust shall terminate, no longer be enforceable against the property, and shall be extinguished as a lien against the property.</text> </level> <level label="3"> <level label="i"> <text>A continuation statement may be filed within 1 year before the expiration of the applicable time period under paragraph (1) of this subsection.</text> </level> <level label="ii"> <text>A continuation statement shall:</text> <level label="1"> <text>Be signed by:</text> </level> <level label="A"> <text>The current mortgagee, if the instrument is a mortgage; or</text> </level> <level label="B"> <text>The current beneficiary or any one or more of the current trustees if the instrument is a deed of trust;</text> </level> <level label="2"> <text>Identify the original instrument by:</text> </level> <level label="A"> <text>The office, docket or book, and first page where the instrument is recorded; and</text> </level> <level label="B"> <text>The name of the parties to the instrument; and</text> </level> <level label="3"> <text>State that the purpose of the continuation statement is to continue the effectiveness of the original instrument.</text> </level> </level> <level label="iii"> <text>Upon timely recordation in the land records where the original instrument was recorded of a continuation statement under this subparagraph, the effectiveness of the original instrument shall be continued for 12 years after the day on which the continuation statement is recorded.</text> </level> <level label="iv"> <text>A continuation statement is effective if it substantially complies with the requirements of subparagraph (ii) of this paragraph.</text> </level> </level> </level> <level label="d"> <text>Any person who has a lien on real property in this State, or the agent of the lienholder, on payment in satisfaction of the lien, on written request, shall furnish to the person responsible for the disbursement of funds in connection with the grant of title to that property the original copy of the executed release of that lien. If the lien instrument is a deed of trust the original promissory note marked “paid” or “canceled” in accordance with § 3–105(d)(1) of this article constitutes an executed release. If the lien instrument is a mortgage, the original mortgage marked “paid” or “canceled” in accordance with § 3–105(d)(2) of this article constitutes an executed release. This release shall be mailed or otherwise delivered to the person responsible for the disbursement of funds:</text> <level label="1"> <text>Within seven days of the receipt, by the holder of the lien, of currency, a certified or cashier’s check, or money order in satisfaction of the debt, including all amounts due under the lien instruments and under instruments secured by the lien; or</text> </level> <level label="2"> <text>Within seven days after the clearance of normal commercial channels of any type of commercial paper, other than those specified in paragraph (1), received by the holder of the lien in satisfaction of the outstanding debt, including all amounts due under the lien instruments and under the instruments secured by the lien.</text> </level> </level> <level label="e"> <text>If the holder of a lien on real property or his agent fails to provide the release within 30 days, the person responsible for the disbursement of funds in connection with the grant of title to the property, after having made demand therefor, may bring an action to enforce the provisions of this section in the circuit court for the county in which the property is located. In the action the lienholder, or his agent, or both, shall be liable for the delivery of the release and for all costs and expenses in connection with the bringing of the action, including reasonable attorney’s fees.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-107" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>In the case of a mortgage or a deed of trust in which the lender assumes responsibility to the borrower to pay the property taxes on the mortgaged property by the collection of taxes through an expense account arrangement, the lender shall pay the taxes within 45 days after (1) the first due date, (2) receipt of the tax bill by the lender, or (3) the funds collected by the lender are sufficient to pay the amount of taxes and interest due, whichever occurs last.</text> </level> <level label="b"> <text>If a lender has sufficient funds available to pay the taxes, has received a copy of the tax bill, and fails to pay at the time as provided in this section, the lender shall pay the difference between the amount of taxes, interest, and penalty due if paid at the time as provided and the amount of taxes, interest, and penalty due at the time that the taxes, interest, and penalty are actually paid by the lender.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-108" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <text>Any person may record among the land records of any county an unexecuted declaration of provisions, covenants, and conditions, and any mortgage or deed of trust thereafter recorded among the land records of the county where the declaration is recorded may incorporate any provision, covenant, or condition of the declaration into the mortgage or deed of trust by specific reference to it and to the liber and folio of the declaration, if the intention to incorporate by reference is shown clearly, and the mortgagor or grantor is furnished a copy of the declaration when the mortgage or deed of trust is executed.</text> </section> <section article="grp" article_name="Real Property" number="7-109" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Affiliate” means any association, corporation, business trust, statutory trust, or other similar organization that controls, is controlled by, or is under common control with, a financial institution, as defined in § 1–101 of the Financial Institutions Article.</text> </level> <level label="3"> <text>“Settlement” means the process of executing and delivering to the lender or the agent responsible for settlement, legally binding documents evidencing or securing a loan secured by a deed of trust or mortgage encumbering real property in this State.</text> </level> </level> <level label="b"> <level label="1"> <text>In any consumer loan transaction in which the loan is secured by a purchase money mortgage or deed of trust on real property located in this State, on or before the day of settlement, the lender shall disburse the loan proceeds in accordance with the loan documents to the agent responsible for settlement as provided in subsections (c) and (d) of this section.</text> </level> <level label="2"> <text>In any consumer loan transaction in which the loan is secured by a secondary deed of trust or mortgage on real property located in this State, on or before the day of funding the agent responsible for settlement may require the lender to disburse the loan proceeds as provided in paragraph (1) of this subsection.</text> </level> </level> <level label="c"> <text>Except as provided in subsection (d) of this section, the lender shall disburse the loan proceeds in the form of:</text> <level label="1"> <text>Cash;</text> </level> <level label="2"> <text>Wired funds;</text> </level> <level label="3"> <text>A certified check;</text> </level> <level label="4"> <text>A check issued by a political subdivision or on behalf of a governmental entity;</text> </level> <level label="5"> <text>A teller’s check issued by a depository institution and drawn on another depository institution; or</text> </level> <level label="6"> <text>A cashier’s check.</text> </level> </level> <level label="d"> <text>In addition to the methods of loan disbursement provided in subsection (c) of this section, the loan proceeds may be disbursed in the form of a check drawn on a financial institution insured by the Federal Deposit Insurance Corporation and located in the 5th Federal Reserve District if the lender is:</text> <level label="1"> <text>An affiliate or subsidiary of a financial institution insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration Share Insurance Program; or</text> </level> <level label="2"> <text>A mortgage company approved by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.</text> </level> </level> <level label="e"> <text>If a loan subject to this section is not disbursed as provided in subsection (c) of this section, the lender may not charge interest on the loan for the first 30 days following the date of closing.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-110" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>Notwithstanding any other provision of law, including this title, any grant of a security interest in or assignment of a mortgage to any State or federal government agency or instrumentality, including the Maryland Deposit Insurance Fund Corporation, a federal reserve bank, or a federal home loan bank, by any savings and loan association is fully perfected and takes priority to the extent of the association’s interest in the mortgage over all other claims and creditors with respect to any such mortgage in the possession or control of that State or federal government agency or instrumentality.</text> </level> <level label="b"> <text>The State or federal government agency or instrumentality receiving a grant of a security interest in or assignment of a mortgage by a savings and loan association pursuant to subsection (a) of this section shall give prompt notification thereof to the State or federal agency that issued the charter to the association.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-111" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <text>Subject to subsection (b) of this section, any change or modification to a mortgage or deed of trust or to an obligation secured by a mortgage or deed of trust does not extinguish the existing lien of the mortgage or deed of trust or otherwise adversely affect the existing lien priority of the mortgage or deed of trust.</text> </level> <level label="b"> <text>If the change or modification to a mortgage or deed of trust or to an obligation secured by a mortgage or deed of trust increases the principal sum secured by the mortgage or deed of trust above the amount appearing on the face of the mortgage or deed of trust and expressed to be secured by it:</text> <level label="1"> <text>The existing lien priority of the original mortgage or deed of trust shall continue as to the principal sum secured by the mortgage or deed of trust immediately preceding the change or modification; and</text> </level> <level label="2"> <text>The lien priority for the increase in the principal sum shall date from the date of the changed or modified mortgage or deed of trust.</text> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-112" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Escrow costs” means money to pay property taxes, hazard insurance, mortgage insurance, and similar costs associated with real property secured by a refinance mortgage that a lender requires to be collected at closing and held in escrow.</text> </level> <level label="3"> <level label="i"> <text>“Junior lien” means a mortgage, deed of trust, or other security instrument that is subordinate in priority to a first mortgage or deed of trust under § 3–203 of this article.</text> </level> <level label="ii"> <text>“Junior lien” does not include:</text> <level label="1"> <text>A judgment lien; or</text> </level> <level label="2"> <text>A lien filed under the Maryland Contract Lien Act.</text> </level> </level> </level> <level label="4"> <text>“Refinance mortgage” means a mortgage, deed of trust, or other security instrument given to secure the refinancing of indebtedness secured by a first mortgage or deed of trust.</text> </level> <level label="5"> <text>“Residential property” means real property improved by four or fewer single family dwelling units that are designed principally and are intended for human habitation.</text> </level> </level> <level label="b"> <text>This section does not apply to a junior lien securing a loan made by a state or local government agency with a 0% interest rate.</text> </level> <level label="c"> <text>A mortgagor or grantor who refinances in full the unpaid indebtedness secured by a first mortgage or deed of trust encumbering or conveying an interest in residential property at an interest rate lower than provided for in the evidence of indebtedness secured by the first mortgage or deed of trust is not required to obtain permission from the holder of a junior lien if:</text> <level label="1"> <text>The principal amount secured by the junior lien does not exceed $150,000; and</text> </level> <level label="2"> <text>The principal amount secured by the refinance mortgage does not exceed the unpaid outstanding principal balance secured by the first mortgage or deed of trust plus an amount not exceeding $5,000 to pay closing costs and escrow costs.</text> </level> </level> <level label="d"> <text>A refinance mortgage that meets the requirements of subsection (c) of this section shall have, on recordation, the same lien priority as the first mortgage or deed of trust that the refinance mortgage replaces.</text> </level> <level label="e"> <text>A refinance mortgage that meets the requirements of subsection (c) of this section shall include the following statement in bold or capitalized letters: “This is a refinance of a deed of trust/mortgage/other security instrument recorded among the land records of ............... county/city, Maryland in liber no. ....... folio ......., in the original principal amount of ............., and with the unpaid outstanding principal balance of .............. The interest rate provided for in the evidence of indebtedness secured by this refinance mortgage is lower than the applicable interest rate provided for in the evidence of indebtedness secured by the deed of trust/mortgage/other security instrument being refinanced.”</text> </level> <level label="f"> <text>The priorities among two or more junior liens shall be governed by § 3–203 of this article.</text> </level> <level label="g"> <text>This section may not be construed to preempt or abrogate the operation or effect of, or ability of a court to apply the principles of, equitable subrogation or equitable subordination.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-113" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="1" subtitle_name="Mortgages and Deeds of Trust"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Party claiming the right to possession” means a person or successor to any person who:</text> <level label="i"> <text>Does not have actual possession of a residential property; and</text> </level> <level label="ii"> <text>Has or claims to have a legal right to possession of the residential property:</text> <level label="1"> <text>By the terms of a contract or foreclosure sale;</text> </level> <level label="2"> <text>Under a residential lease or sublease that has an initial term of 99 years renewable forever and that creates a leasehold estate subject to the payment of periodic installments of an annual lease amount; or</text> </level> <level label="3"> <text>Under a court order, including a court order extinguishing a right of redemption.</text> </level> </level> </level> <level label="3"> <level label="i"> <text>“Protected resident” means an owner or former owner in actual possession of residential property.</text> </level> <level label="ii"> <text>“Protected resident” includes a grantee, tenant, subtenant, or other person in actual possession by, through, or under an owner or former owner of residential property.</text> </level> <level label="iii"> <text>“Protected resident” does not include a trespasser or squatter.</text> </level> </level> <level label="4"> <text>“Residential property” means a building, structure, or portion of a building or structure that is designed principally and is intended for human habitation.</text> </level> <level label="5"> <text>“Threaten to take possession” means using words or actions intended to convince a reasonable person that a party claiming the right to possession intends to take imminent possession of residential property in violation of this section.</text> </level> <level label="6"> <text>“Willful diminution of services” means intentionally interrupting or causing the interruption of heat, running water, hot water, electricity, or gas by a party claiming the right to possession for the purpose of forcing a protected resident to abandon residential property.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a party claiming the right to possession may not take possession or threaten to take possession of residential property from a protected resident by:</text> <level label="i"> <text>Locking the resident out of the residential property;</text> </level> <level label="ii"> <text>Engaging in willful diminution of services to the protected resident; or</text> </level> <level label="iii"> <text>Taking any other action that deprives the protected resident of actual possession.</text> </level> </level> <level label="2"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, a party claiming the right to possession may take possession of residential property from a protected resident only in accordance with a writ of possession issued by a court and executed by a sheriff or constable.</text> </level> <level label="ii"> <text>A party claiming the right to possession of residential property may use nonjudicial self–help to take possession of the property, if the party:</text> <level label="1"> <text>Reasonably believes the protected resident has abandoned or surrendered possession of the property based on a reasonable inquiry into the occupancy status of the property;</text> </level> <level label="2"> <text>Provides notice as provided in subsection (c) of this section; and</text> </level> <level label="3"> <text>Receives no responsive communication to that notice within 15 days after the later of posting or mailing the notice as required by subsection (c) of this section.</text> </level> </level> </level> </level> <level label="c"> <level label="1"> <text>If a party claiming the right to possession of residential property reasonably believes, based on a reasonable inquiry into the occupancy status of the property, that all protected residents have abandoned or surrendered possession of the residential property, the party claiming the right to possession may post on the front door of the residential property and mail by first–class mail addressed to “all occupants” at the address of the residential property a written notice in substantially the following form:</text> <text>“IMPORTANT NOTICE ABOUT EVICTION</text> <text>A person who claims the right to possess this property believes that this property is abandoned. If you are currently residing in the property, you must immediately contact:</text> <text>_________________________________</text> <text>Name</text> <text>_________________________________</text> <text>Address</text> <text>_________________________________</text> <text>Telephone</text> <text>_________________________________</text> <text>Date of this notice</text> <text>If you do not contact the person listed above within 15 days after the date of this notice, the person claiming possession may consider the property abandoned and seek to secure the property, including changing the locks without a court order.”.</text> </level> <level label="2"> <text>The written notice required by this subsection shall be:</text> <level label="i"> <text>A separate document; and</text> </level> <level label="ii"> <text>Printed in at least 12 point type.</text> </level> </level> <level label="3"> <text>The outside of the envelope containing the mailed written notice required by this subsection shall state, on the address side, in bold, capital letters in at least 12 point type, the following: “Important notice to all occupants: eviction information enclosed; open immediately.”.</text> </level> </level> <level label="d"> <level label="1"> <text>If in any proceeding the court finds that a party claiming the right to possession violated subsection (b) of this section, the protected resident may recover:</text> <level label="i"> <text>Possession of the property, if no other person then resides in the property;</text> </level> <level label="ii"> <text>Actual damages; and</text> </level> <level label="iii"> <text>Reasonable attorney’s fees and costs.</text> </level> </level> <level label="2"> <text>The remedies set forth in this subsection are not exclusive.</text> </level> </level> <level label="e"> <text>This section does not apply if the parties are governed by Title 8, Subtitle 2, or Title 8A of this article.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-201" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="2" subtitle_name="Vendor's Liens"> <text>If any property is granted, and the purchase money, or any part of it, remains unpaid at the time of the grant, the vendor may not have a lien or charge on the property for any other sum of money than the sum that appears to be due on the face of the deed. The time set for payment shall be specified and recited in the deed. No provision in this section may be construed to affect any mortgage or deed of trust given by a purchaser to secure the payment of all or any part of the purchase money, or in any way affect or postpone the lien of any landlord on goods or chattels for the satisfaction or security of rent due or accruing.</text> </section> <section article="grp" article_name="Real Property" number="7-202" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="2" subtitle_name="Vendor's Liens"> <text>The provisions of § 7–105 also are applicable to instruments reserving a valid vendor’s lien, to sales pursuant to a reserved vendor’s lien, and to sales pursuant to the vendor’s authority to sell. A court of equity may decree a sale to enforce a vendor’s lien or any other equitable lien although the lienor may have an adequate remedy at law.</text> </section> <section article="grp" article_name="Real Property" number="7-203" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="2" subtitle_name="Vendor's Liens"> <text>Any deed retaining a valid vendor’s lien may provide that in the event of a sale, any note or other instrument of indebtedness mentioned in the deed shall be paid and satisfied in full in the order of maturity. However, if any note or instrument of indebtedness is paid or satisfied, no further proceedings may be had in reference to or satisfaction of it, but the funds arising from the sale shall be distributed as if the note already paid or satisfied had never been given. If the lien is duly released of record after the date of the maturity of the note or other instrument of indebtedness mentioned in the deed, the note or other instrument of indebtedness conclusively is presumed to have been paid as far as any lien on the property granted by the deed is concerned.</text> </section> <section article="grp" article_name="Real Property" number="7-204" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="2" subtitle_name="Vendor's Liens"> <text>An assignment or release of a vendor’s lien may be made by the holder of the lien in the same manner prescribed for the short assignment or release of a mortgage. The holder of the lien also may write a release on the record in the office where the deed is recorded or the release may be endorsed on the original deed.</text> </section> <section article="grp" article_name="Real Property" number="7-205" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="2" subtitle_name="Vendor's Liens"> <text>The acceptance by the vendor of any guarantee, endorsement, collateral, or other security to insure the full payment of any vendor’s lien, may not be construed as a waiver of the lien. However, the purchaser shall be credited with the proceeds from the sale of any collateral or other securities.</text> </section> <section article="grp" article_name="Real Property" number="7-301" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Commissioner” means the Commissioner of Financial Regulation in the Maryland Department of Labor.</text> </level> <level label="c"> <text>“Foreclosure consultant” means a person who:</text> <level label="1"> <text>Solicits or contacts a homeowner in writing, in person, or through any electronic or telecommunications medium and directly or indirectly makes a representation or offer to perform any service that the person represents will:</text> <level label="i"> <text>Stop, enjoin, delay, void, set aside, annul, stay, or postpone a foreclosure sale;</text> </level> <level label="ii"> <text>Obtain forbearance from any servicer, beneficiary or mortgagee;</text> </level> <level label="iii"> <text>Assist the homeowner to exercise a right of reinstatement provided in the loan documents or to refinance a loan that is in foreclosure and for which notice of foreclosure proceedings has been published;</text> </level> <level label="iv"> <text>Obtain an extension of the period within which the homeowner may reinstate the homeowner’s obligation or extend the deadline to object to a ratification;</text> </level> <level label="v"> <text>Obtain a waiver of an acceleration clause contained in any promissory note or contract secured by a mortgage on a residence in default or contained in the mortgage;</text> </level> <level label="vi"> <text>Assist the homeowner to obtain a loan or advance of funds;</text> </level> <level label="vii"> <text>Avoid or ameliorate the impairment of the homeowner’s credit resulting from the filing of an order to docket or a petition to foreclose or the conduct of a foreclosure sale;</text> </level> <level label="viii"> <text>Save the homeowner’s residence from foreclosure;</text> </level> <level label="ix"> <text>Purchase or obtain an option to purchase the homeowner’s residence within 20 days of an advertised or docketed foreclosure sale; or</text> </level> <level label="x"> <text>Arrange for the homeowner to become a lessee or renter entitled to continue to reside in the homeowner’s residence after a sale or transfer; or</text> </level> </level> <level label="2"> <text>Systematically contacts owners of residences in default to offer foreclosure consulting services.</text> </level> </level> <level label="d"> <text>“Foreclosure consulting contract” means a written, oral, or equitable agreement between a foreclosure consultant and a homeowner for the provision of any foreclosure consulting service.</text> </level> <level label="e"> <text>“Foreclosure consulting service” includes:</text> <level label="1"> <text>Receiving money for the purpose of distributing it to creditors in payment or partial payment of any obligation secured by a lien on a residence in default;</text> </level> <level label="2"> <text>Contacting creditors on behalf of a homeowner;</text> </level> <level label="3"> <text>Arranging or attempting to arrange for an extension of the period within which a homeowner may cure the homeowner’s default and reinstate the homeowner’s obligation;</text> </level> <level label="4"> <text>Arranging or attempting to arrange for any delay or postponement of the sale of a residence in default;</text> </level> <level label="5"> <text>Arranging or facilitating the purchase of a homeowner’s equity of redemption or legal or equitable title;</text> </level> <level label="6"> <text>Arranging or facilitating the sale of a homeowner’s residence or the transfer of legal title, in any form, to another party as an alternative to foreclosure; or</text> </level> <level label="7"> <text>Arranging for or facilitating a homeowner remaining in the homeowner’s residence after a sale or transfer as a tenant, renter, or lessee under terms provided in a written lease.</text> </level> </level> <level label="f"> <text>“Foreclosure rescue transaction” means a transaction:</text> <level label="1"> <text>In which a residence in default is conveyed by a homeowner who retains a legal or equitable interest in all or part of the property, including an interest under a lease–purchase agreement, an option to reacquire the property, or any other legal or equitable interest in the property conveyed; and</text> </level> <level label="2"> <text>That is designed or intended by the parties to prevent or delay actual or anticipated foreclosure proceedings against the residence in default.</text> </level> </level> <level label="g"> <text>“Foreclosure surplus acquisition” means a transaction involving the transfer, sale, or assignment of the surplus remaining and due the homeowner based on the audit account during a foreclosure proceeding.</text> </level> <level label="h"> <level label="1"> <text>“Foreclosure surplus purchaser” means a person who acts as the acquirer by assignment, purchase, grant, or conveyance of the surplus resulting from a foreclosure sale.</text> </level> <level label="2"> <text>“Foreclosure surplus purchaser” includes a person who acts in joint venture or joint enterprise with one or more acquirers.</text> </level> </level> <level label="i"> <text>“Homeowner” means the record owner of a residence in default or a residence in foreclosure, or an individual occupying the residence under a use and possession order issued under Title 8, Subtitle 2 of the Family Law Article.</text> </level> <level label="j"> <text>“Residence in default” means residential real property located in the State consisting of not more than four single family dwelling units, one of which is occupied by the owner, or the owner’s spouse or former spouse under a use and possession order issued under Title 8, Subtitle 2 of the Family Law Article, as the individual’s principal place of residence, and on which the mortgage is at least 60 days in default.</text> </level> <level label="k"> <text>“Residence in foreclosure” means residential real property located in the State consisting of not more than four single family dwelling units, one of which is occupied by the owner, or the owner’s spouse or former spouse under a use and possession order issued under Title 8, Subtitle 2 of the Family Law Article, as the individual’s principal place of residence, and against which an order to docket or a petition to foreclose has been filed.</text> </level> <level label="l"> <text>“Settlement” means an in–person, face–to–face meeting with the homeowner to complete final documents incident to the sale or transfer of real property or the creation of a mortgage or equitable interest in real property, conducted by a settlement agent, during which the homeowner must be presented with a completed copy of the HUD–1 Settlement Form.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-302" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>Except as provided in subsection (b) of this section, this subtitle does not apply to:</text> <level label="1"> <text>An individual admitted to practice law in the State, while performing any activity related to the individual’s regular practice of law in the State;</text> </level> <level label="2"> <text>A person who holds or services a mortgage loan secured by a residence in default while the person performs servicing, collection, and loss mitigation activities in regard to that mortgage loan, provided the mortgage loan did not arise as a result of a foreclosure consulting contract;</text> </level> <level label="3"> <level label="i"> <text>A person doing business under any law of this State or the United States regulating banks, trust companies, savings and loan associations, credit unions, or insurance companies, while the person performs services as a part of the person’s normal business activities; and</text> </level> <level label="ii"> <text>Any subsidiary, affiliate, or agent of a person described in item (i) of this item, while the subsidiary, affiliate, or agent performs services as a part of the subsidiary’s, affiliate’s, or agent’s normal business activities;</text> </level> </level> <level label="4"> <text>A judgment creditor of the homeowner, if the judgment creditor’s claim accrued before the written notice of foreclosure sale required under § 7–105.4 of this title is sent;</text> </level> <level label="5"> <text>A person licensed as a mortgage lender under Title 11, Subtitle 5 of the Financial Institutions Article while:</text> <level label="i"> <text>Acting under the authority of that license in regard to a residence in default; and</text> </level> <level label="ii"> <text>Arranging for a refinancing of a mortgage loan for the residence in default;</text> </level> </level> <level label="6"> <text>A person licensed as a real estate broker, associate real estate broker, or real estate salesperson under Title 17 of the Business Occupations and Professions Article only:</text> <level label="i"> <text>While the person:</text> <level label="1"> <text>Engages in any activity for which the person is licensed under Title 17 of the Business Occupations and Professions Article; and</text> </level> <level label="2"> <text>Does not violate any provision of § 7–307 of this subtitle or Title 17 of the Business Occupations and Professions Article; and</text> </level> </level> <level label="ii"> <text>If the residence in default for which the person is conducting a licensed activity:</text> <level label="1"> <text>Is listed in the local multiple listing service; and</text> </level> <level label="2"> <text>Is sold or transferred through a settlement, including the conveyance or transfer of deed, title, or establishment of equitable interest;</text> </level> </level> </level> <level label="7"> <text>A nonprofit organization that solely offers counseling or advice to homeowners in foreclosure or loan default, if the organization is not directly or indirectly related to and does not contract for services with for–profit lenders; or</text> </level> <level label="8"> <text>A certified community development financial institution that purchases owner–occupied residential property for the purpose of transferring the property to the immediately preceding mortgagor or grantor under the circumstances specified in § 7–105.1 of this title.</text> </level> </level> <level label="b"> <text>This subtitle does apply to an individual who:</text> <level label="1"> <text>Is functioning in a position listed under subsection (a)(1) through (7) of this section; and</text> </level> <level label="2"> <text>Is engaging in activities or providing services designed or intended to transfer title to a residence in default directly or indirectly to that individual, a relative of that individual, or an agent or affiliate of that individual.</text> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-305" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>In addition to any other right under law to cancel or rescind a contract, a homeowner has the right to rescind a foreclosure consulting contract at any time.</text> </level> <level label="b"> <text>Rescission occurs when the homeowner gives written notice of rescission to the foreclosure consultant at the address specified in the contract or through any facsimile or electronic mail address identified in the contract or other materials provided to the homeowner by the foreclosure consultant.</text> </level> <level label="c"> <text>Notice of rescission, if given by mail, is effective when deposited in the United States mail, properly addressed, with postage prepaid.</text> </level> <level label="d"> <text>Notice of rescission need not be in the form provided with the contract and is effective, however expressed, if it indicates the intention of the homeowner to rescind the foreclosure consulting contract.</text> </level> <level label="e"> <text>After the rescission of a foreclosure consulting contract, the homeowner shall repay, within 60 days from the date of rescission, any funds paid or advanced by the foreclosure consultant or anyone working with the foreclosure consultant under the terms of the foreclosure consulting contract, together with interest calculated at the rate of 8% a year.</text> </level> <level label="f"> <text>The right to rescind may not be conditioned on the repayment of any funds.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-306" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>A foreclosure consulting contract shall:</text> <level label="1"> <text>Be provided to the homeowner for review before signing;</text> </level> <level label="2"> <text>Be printed in at least 12 point type and written in the same language that is used by the homeowner and was used in discussions with the foreclosure consultant to describe the consultant’s services or to negotiate the contract;</text> </level> <level label="3"> <text>Fully disclose the exact nature of the foreclosure consulting services to be provided, including any sale or tenancy that may be involved, and the total amount and terms of any compensation from any source to be received by the foreclosure consultant or anyone working in association with the consultant;</text> </level> <level label="4"> <text>State the duty of the foreclosure consultant to provide the homeowner with written copies of any research the foreclosure consultant has regarding the value of the homeowner’s residence in default, including any information on sales of comparable properties or any appraisals;</text> </level> <level label="5"> <text>Be dated and personally signed by the homeowner and the foreclosure consultant and be witnessed and acknowledged by a notary public appointed and commissioned by the State; and</text> </level> <level label="6"> <text>Contain the following notice, which shall be printed in at least 14 point boldface type, completed with the name of the foreclosure consultant, and located in immediate proximity to the space reserved for the homeowner’s signature:</text> <text>“NOTICE REQUIRED BY MARYLAND LAW</text> <text>...... (Name) or anyone working for him or her CANNOT ask you to sign or have you sign any lien, mortgage, or deed as part of signing this agreement unless the terms of the transfer are specified in this document and you are given a separate explanation of the precise nature of the transaction. The separate explanation must include: how much money you must pay; how much money you will receive, if any; and how much money the foreclosure consultant will receive from any source.</text> <text>...... (Name) or anyone working for him or her CANNOT guarantee you that they will be able to refinance your home or arrange for you to keep your home. Continue making mortgage payments until a refinancing, if applicable, is approved.</text> <text>You have the right to rescind this foreclosure consulting contract at any time by informing the foreclosure consultant that you want to rescind the contract. See the attached Notice of Rescission form for an explanation of this right. After any rescission, you must repay, within 60 days, any money spent on your behalf as a result of this agreement, along with interest calculated at the rate of 8% a year.</text> <text>If a contract to sell or transfer the deed or title to your property is involved in any way, you may rescind that contract at any time within 5 days after the date you sign that contract and you are informed of this right. After any rescission, you must repay, within 60 days, any money spent on your behalf as a result of this agreement, along with interest calculated at the rate of 8% a year.</text> <text>THIS IS AN IMPORTANT LEGAL CONTRACT AND COULD RESULT IN THE LOSS OF YOUR HOME. CONTACT AN ATTORNEY BEFORE SIGNING.”.</text> </level> </level> <level label="b"> <text>The contract shall contain on the first page, in at least 12 point type size:</text> <level label="1"> <text>The name and address of the foreclosure consultant to which the notice of rescission is to be mailed; and</text> </level> <level label="2"> <text>The date the homeowner signed the contract.</text> </level> </level> <level label="c"> <level label="1"> <text>The contract shall be accompanied by a completed form in duplicate, captioned “NOTICE OF RESCISSION”.</text> </level> <level label="2"> <text>The Notice of Rescission shall:</text> <level label="i"> <text>Be on a separate sheet of paper attached to the contract;</text> </level> <level label="ii"> <text>Be easily detachable; and</text> </level> <level label="iii"> <text>Contain the following statement printed in at least 15 point type:</text> <text>“NOTICE OF RESCISSION</text> <text>(Date of Contract)</text> <text>You may rescind this foreclosure consulting contract, without any penalty, at any time.</text> <text>If you want to rescind this contract, mail or deliver a signed and dated copy of this Notice of Rescission, or any other written notice indicating your intent to rescind to (name of foreclosure consultant) at (address of foreclosure consultant, including facsimile and electronic mail).</text> <text>After any rescission, you (the homeowner) must repay any money spent on your behalf as a result of this agreement, within 60 days, along with interest calculated at the rate of 8% a year.</text> <text>This is an important legal contract and could result in the loss of your home. Contact an attorney before signing.</text> <text>NOTICE OF RESCISSION</text> <text>TO: (name of foreclosure consultant)</text> <text>(address of foreclosure consultant, including facsimile and electronic mail)</text> <text>I hereby rescind this contract.</text> <text>...... (Date)</text> <text>........ (Homeowner’s signature)”.</text> </level> </level> </level> <level label="d"> <text>The foreclosure consultant shall provide the homeowner with a signed and dated copy of the foreclosure consulting contract and the attached Notice of Rescission immediately upon execution of the contract.</text> </level> <level label="e"> <text>The time during which the homeowner may rescind the foreclosure consulting contract does not begin to run until the foreclosure consultant has complied with this section.</text> </level> <level label="f"> <text>Any provision in a foreclosure consulting contract that attempts or purports to waive any of the rights specified in this title, consent to jurisdiction for litigation or choice of law in a state other than Maryland, consent to venue in a county other than the county in which the property is located, or impose any costs or filing fees greater than the fees required to file an action in a circuit court, is void.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-307" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <text>A foreclosure consultant may not:</text> <level label="1"> <text>Engage in, arrange, offer, promote, promise, solicit, participate in, assist with, or carry out a foreclosure rescue transaction;</text> </level> <level label="2"> <text>Claim, demand, charge, collect, or receive any compensation until after the foreclosure consultant has fully performed each and every service the foreclosure consultant contracted to perform or represented that the foreclosure consultant would perform;</text> </level> <level label="3"> <text>Claim, demand, charge, collect, or receive any interest or any other compensation for any loan that the foreclosure consultant makes to the homeowner that exceeds 8% a year;</text> </level> <level label="4"> <text>Take any wage assignment, any lien of any type on real or personal property, or other security to secure the payment of compensation;</text> </level> <level label="5"> <text>Receive any consideration from any third party in connection with foreclosure consulting services provided to a homeowner unless the consideration:</text> <level label="i"> <text>Is first fully disclosed in writing to the homeowner;</text> </level> <level label="ii"> <text>Is clearly listed on any settlement documents; and</text> </level> <level label="iii"> <text>Is not in violation of any provision of this subtitle;</text> </level> </level> <level label="6"> <text>Receive a commission, regardless of how described, for the sale of a residence in default that exceeds 8% of the sales price;</text> </level> <level label="7"> <text>Receive any money to be held in escrow or on a contingent basis on behalf of the homeowner;</text> </level> <level label="8"> <text>Acquire any interest, directly or indirectly, or by means of a subsidiary, affiliate, or corporation in which the foreclosure consultant or a member of the foreclosure consultant’s immediate family is a primary stockholder, in a residence in default from a homeowner with whom the foreclosure consultant has contracted;</text> </level> <level label="9"> <text>Take any power of attorney from a homeowner for any purpose, except to inspect documents as provided by law; or</text> </level> <level label="10"> <text>Induce or attempt to induce any homeowner to enter into a foreclosure consulting contract that does not comply in all respects with this subtitle.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-308" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“License” has the meaning stated in § 17–101(g) of the Business Occupations and Professions Article.</text> </level> <level label="3"> <text>“Provide real estate brokerage services” has the meaning stated in § 17–101(l) of the Business Occupations and Professions Article.</text> </level> </level> <level label="b"> <text>A foreclosure consultant who provides real estate brokerage services shall be licensed as required under Title 17 of the Business Occupations and Professions Article.</text> </level> <level label="c"> <text>A foreclosure consultant shall present a copy of the license to a homeowner no later than the time a foreclosure consulting contract is executed.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-309" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>A foreclosure consultant has a duty to provide the homeowner with written copies of any research the foreclosure consultant has regarding the value of the homeowner’s residence in default, including any information on sales of comparable properties or any appraisals.</text> </level> <level label="b"> <text>A foreclosure consultant owes the same duty of care to a homeowner as a licensed real estate broker owes to a client under § 17–532 of the Business Occupations and Professions Article.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-310" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>In addition to any other right under law to rescind a contract, the homeowner of a residence in default has the right to rescind a contract for the sale or transfer of the residence in default within 5 days after the execution of the contract.</text> </level> <level label="b"> <text>Any provision in a contract or other agreement concerning a sale or transfer of a residence in default that attempts or purports to waive the homeowner’s rights under this title, consent to jurisdiction for litigation or choice of law in a state other than Maryland, consent to venue in a county other than the county in which the property is located, or impose any costs or filing fees greater than the fees required to file an action in a circuit court, is void.</text> </level> <level label="c"> <text>Except when a primary mortgage lender takes a deed in lieu of foreclosure, a sale or transfer of a residence in default may not be executed using a quitclaim deed.</text> </level> <level label="d"> <text>A notice of rescission under this section:</text> <level label="1"> <text>Shall be in writing but need not take any particular form specified in this subtitle or any form contained in any agreement with the purchaser or transferee; and</text> </level> <level label="2"> <text>Is effective, however expressed, if it indicates the intention of the homeowner to rescind the contract.</text> </level> </level> <level label="e"> <text>The right to rescind may not be conditioned on the repayment of any funds, provided however that any debt existing prior to a rescission shall continue to exist.</text> </level> <level label="f"> <text>Within 10 days after receipt of a notice of rescission, the purchaser or transferee shall return, without condition, any original deed, title, contract, and any other document signed by the homeowner.</text> </level> <level label="g"> <text>During the 5–day rescission period, a deed or other document affecting title to the homeowner’s residence in default may not be recorded.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-311" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>This section applies to a contract for the sale or transfer of a residence in default that is included in a foreclosure consulting contract or arranged by a foreclosure consultant.</text> </level> <level label="b"> <text>In addition to any other requirement under law, the purchaser of a residence in default shall provide the homeowner with a document entitled “Notice to Homeowner”.</text> </level> <level label="c"> <text>The document entitled “Notice to Homeowner” shall:</text> <level label="1"> <text>Contain the total sales price of the residence in default and an explanation of the distribution of the proceeds of the sale, including any payments to any parties, including the foreclosure consultant;</text> </level> <level label="2"> <text>Be printed in 12 point type and written in the same language that is used by the homeowner and was used in discussions to describe the foreclosure consultant’s or purchaser’s services or to negotiate the transfer or sale of the property;</text> </level> <level label="3"> <text>Be dated and personally signed by the homeowner and the purchaser and witnessed and acknowledged by a notary public appointed and commissioned by the State;</text> </level> <level label="4"> <text>Describe in detail the terms of any sale or transfer including:</text> <level label="i"> <text>The name, business address, telephone number, and facsimile number of the person to whom the deed or title will be sold or transferred;</text> </level> <level label="ii"> <text>The address of the residence in default;</text> </level> <level label="iii"> <text>The total consideration to be given or received, directly or indirectly, by the homeowner, purchaser, and the foreclosure consultant;</text> </level> <level label="iv"> <text>The time at which title is to be sold or transferred to the purchaser; and</text> </level> <level label="v"> <text>Any financial or legal obligations to which the homeowner may remain subject; and</text> </level> </level> <level label="5"> <text>Contain the following statement printed in at least 14 point boldface type and located in immediate proximity to the space reserved for the homeowner’s signature:</text> <text>“If you change your mind about selling or transferring ownership of your property, you, the homeowner, may rescind the contract for the sale or transfer of the deed or title to your property any time within the next 5 days. See the attached Notice of Right to Rescind Contract for the Sale or Transfer of Deed or Title. After any rescission, you must repay, within 60 days, any money spent on your behalf as a result of this agreement, along with interest calculated at the rate of 8% a year.</text> <text>THIS IS AN IMPORTANT LEGAL CONTRACT AND COULD RESULT IN THE LOSS OF YOUR HOME. CONTACT AN ATTORNEY BEFORE SIGNING.”</text> </level> </level> <level label="d"> <level label="1"> <text>The purchaser shall provide the homeowner with a document entitled “NOTICE OF RIGHT TO RESCIND CONTRACT FOR THE SALE OR TRANSFER OF DEED OR TITLE”.</text> </level> <level label="2"> <text>The document entitled “NOTICE OF RIGHT TO RESCIND CONTRACT FOR THE SALE OR TRANSFER OF DEED OR TITLE” shall:</text> <level label="i"> <text>Be a separate document and not printed on the back of any other document; and</text> </level> <level label="ii"> <text>Contain the following statement printed in at least 14 point type:</text> <text>“NOTICE OF RIGHT TO RESCIND CONTRACT FOR THE SALE OR TRANSFER OF DEED OR TITLE</text> <text>(Date)</text> <text>You may rescind the contract for the sale or transfer of ownership of your property within 5 business days after the date you sign this document and are notified of this right.</text> <text>To rescind this contract, mail or deliver a signed and dated copy of this Notice, or any other written notice expressing a similar intent to (name of purchaser) at (address of purchaser, including facsimile and electronic mail).</text> <text>After any rescission, you (the homeowner) must repay any money spent on your behalf as a result of this agreement, within 60 days, along with interest calculated at the rate of 8% a year.</text> <text>THIS IS AN IMPORTANT LEGAL CONTRACT AND COULD RESULT IN THE LOSS OF YOUR HOME. CONTACT AN ATTORNEY BEFORE SIGNING.</text> <text>NOTICE OF RESCISSION</text> <text>TO: (name of purchaser)</text> <text>(address of purchaser, including facsimile and electronic mail)</text> <text>I hereby rescind the contract for the sale or transfer of deed or title to my property. Please return all executed documents to me.</text> <text>....... (Date)</text> <text>.......... (Homeowner’s signature)”.</text> </level> </level> </level> <level label="e"> <text>The purchaser shall provide the homeowner with a copy of the Notice of Right to Rescind Contract for the Sale or Transfer of Deed or Title immediately on execution of any document that includes an agreement to sell or transfer.</text> </level> <level label="f"> <text>The time during which the homeowner may rescind the contract for the sale or transfer does not begin to run until the purchaser has complied with this part.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-312" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <text>A purchaser of a residence in default may not:</text> <level label="1"> <text>Represent, directly or indirectly, that:</text> <level label="i"> <text>The purchaser is acting as an advisor or a consultant, or in any other manner represent that the purchaser is acting on behalf of the homeowner;</text> </level> <level label="ii"> <text>The purchaser has certification or licensure that the purchaser does not have;</text> </level> <level label="iii"> <text>The purchaser is assisting the homeowner to “save the house” or use a substantially similar phrase; or</text> </level> <level label="iv"> <text>The purchaser is assisting the homeowner in preventing a foreclosure if the result of the transaction is that the homeowner will no longer own the property;</text> </level> </level> <level label="2"> <text>Make any other statements, directly or by implication, or engage in any other conduct that is false, deceptive, or misleading, or that has the likelihood to cause confusion or misunderstanding, including statements regarding the value of the residence in default, the amount of proceeds the homeowner will receive after a sale or transfer, any contract term, or the homeowner’s rights or obligations incident to or arising out of the sale or transfer; or</text> </level> <level label="3"> <text>Until the homeowner’s right to rescind the transaction has expired:</text> <level label="i"> <text>Record any document, including an instrument of conveyance, signed by the homeowner; or</text> </level> <level label="ii"> <text>Transfer or encumber or purport to transfer or encumber any interest in the residence in default to any third party.</text> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-313" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <level label="1"> <text>If a tenancy agreement is included in a contract for the sale or transfer of a residence in default, the purchaser shall provide the homeowner with a document entitled “STATEMENT ABOUT TENANCY” at the time the contract is executed.</text> </level> <level label="2"> <text>The document entitled “STATEMENT ABOUT TENANCY” shall:</text> <level label="i"> <text>Be on a separate sheet of paper attached to the contract for the sale or transfer of a residence in default;</text> </level> <level label="ii"> <text>Be dated and personally signed by the homeowner and the purchaser and be witnessed and acknowledged by a notary public appointed and commissioned by the State;</text> </level> <level label="iii"> <text>Contain a statement informing the homeowner of the homeowner’s right to a copy of a signed lease; and</text> </level> <level label="iv"> <text>Contain the following statement printed in at least 15 point type:</text> <text>“STATEMENT ABOUT TENANCY</text> <text>(Date of Contract)</text> <text>I agree to sell my home. I understand that I will no longer have an ownership interest in or any other right to own this property. Even though I may be able to live on the premises as a tenant, I will have no right to repurchase this property or to obtain any other kind of ownership interest. If I do not pay the rent as agreed, I may be subject to eviction. As a tenant, I am entitled to receive a written lease from the new owner of the property.”.</text> </level> </level> </level> <level label="b"> <text>The purchaser shall provide the homeowner with a signed and dated copy of the document entitled “STATEMENT ABOUT TENANCY” immediately upon execution of the contract for the sale or transfer of the residence in default.</text> </level> <level label="c"> <text>The time during which the homeowner may rescind the contract for the sale or transfer of a residence in default under § 7–310 of this subtitle does not begin to run until the purchaser has complied with this section.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-314" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>Each foreclosure surplus acquisition shall be in the form of a written contract.</text> </level> <level label="b"> <text>Each foreclosure surplus acquisition contract shall:</text> <level label="1"> <text>Contain the entire agreement of the parties;</text> </level> <level label="2"> <text>Be printed in at least 12 point type, in the same language that is used by the homeowner and was used by the foreclosure surplus purchaser and the homeowner to negotiate the sale of the residence in foreclosure;</text> </level> <level label="3"> <text>Be fully completed, dated, and personally signed by the homeowner and the foreclosure surplus purchaser before the statement of account has been referred to the auditor; and</text> </level> <level label="4"> <text>Include:</text> <level label="i"> <text>The name, business address, and telephone number of the foreclosure surplus purchaser;</text> </level> <level label="ii"> <text>The address of the residence in foreclosure;</text> </level> <level label="iii"> <text>The total consideration to be given by the foreclosure surplus purchaser in connection with or incident to the transaction;</text> </level> <level label="iv"> <text>A complete description of the terms of payment or other consideration, including any services of any nature that the foreclosure surplus purchaser represents the foreclosure surplus purchaser will perform for the homeowner before or after the sale; and</text> </level> <level label="v"> <text>The following notice, which shall be printed in at least 14 point boldface type, completed with the name of the foreclosure surplus purchaser, and located in immediate proximity to the space reserved for the homeowner’s signature:</text> <text>“NOTICE REQUIRED BY MARYLAND LAW</text> <text>If you have any questions about this document, seek legal counsel before signing. This is an important legal contract. Failure to read and understand these documents may cause you to lose valuable rights.</text> <text>The effect of these documents is that you may lose the equity in your home. This agreement will not stop the foreclosure or get your house back. If you believe the foreclosure sale was improper, you should immediately seek legal advice to determine what objections to ratification or to rescind the order of ratification may be filed.</text> <text>You may rescind this contract for the sale of your house without any penalty or obligation at any time within 10 days after the auditor states the account of the foreclosure sale. See the attached Notice of Rescission form for an explanation of this right. After the rescission, you must repay from the surplus proceeds any consideration received, directly or indirectly, together with an amount for interest calculated at the rate of 8% a year.”</text> </level> </level> </level> <level label="c"> <level label="1"> <text>The contract shall be accompanied by a completed form in duplicate, captioned “Notice of Rescission”.</text> </level> <level label="2"> <text>The Notice of Rescission shall:</text> <level label="i"> <text>Be on a separate sheet of paper attached to the contract;</text> </level> <level label="ii"> <text>Be easily detachable; and</text> </level> <level label="iii"> <text>Contain the following statement printed in at least 15 point type:</text> <text>“NOTICE OF RESCISSION</text> <text>.................................... (Date of contract)</text> <text>You may rescind this contract for the sale of your house at any time within 10 days after the auditor states the account of the foreclosure sale.</text> <text>To rescind this transaction, mail or deliver a signed and dated copy of this Notice of Rescission to ......................................... (Name of purchaser) at ............................................... (Address of purchaser, including facsimile and electronic mail) with a copy to the court appointed auditor.</text> <text>I hereby rescind this transaction.</text> <text>.................... (Date)</text> <text>............................. (Homeowner’s signature)”.</text> </level> </level> </level> <level label="d"> <text>The foreclosure surplus purchaser shall provide the homeowner with a copy of the contract and the attached Notice of Rescission at the time the contract is executed by all parties.</text> </level> <level label="e"> <text>The contract required by this section survives delivery of any instrument of conveyance of the residence in foreclosure, is binding in the audit, and has no effect on persons other than the parties to the contract.</text> </level> <level label="f"> <text>Any provision in a contract that attempts or purports to waive any of the rights specified in this title, consent to jurisdiction or choice of law in a state other than Maryland, consent to venue in a county other than the county in which the property is located, or impose any costs or filing fees greater than the fees required to file an action in a circuit court, is void.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-315" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>In addition to any other right of rescission, a homeowner has the right to rescind any contract with a foreclosure surplus purchaser at any time within 10 days after the statement of audit account of the foreclosure sale.</text> </level> <level label="b"> <level label="1"> <text>Rescission occurs when the homeowner delivers, by any means, written Notice of Rescission to the address specified in the contract, with a copy to the auditor. As part of the rescission, the homeowner shall repay any consideration received directly or indirectly, together with interest calculated at the rate of 8% a year.</text> </level> <level label="2"> <text>On receipt of the Notice of Rescission, the auditor shall restate the account. The repayment of consideration and interest by the homeowner shall be incorporated by the auditor into the revised statement of account filed with the court.</text> </level> <level label="3"> <text>Upon ratification of the amended audit, the attorney named in the mortgage, mortgage assignee for purposes of foreclosure, trustee, or substitute trustee in making distribution of the surplus funds shall comply with the revised court–approved audit.</text> </level> </level> <level label="c"> <text>A Notice of Rescission given by a homeowner need not be in the form provided with the contract and is effective, however expressed, if it indicates the intention of the homeowner to rescind the contract.</text> </level> <level label="d"> <text>The right to rescind may not be conditioned on the repayment of any funds.</text> </level> <level label="e"> <text>Within 10 days after receipt of a Notice of Rescission given in accordance with this section, the foreclosure surplus purchaser shall return, without condition, the original contract and all other documents signed by the homeowner.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-318" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>A person may not induce or attempt to induce a homeowner to waive the homeowner’s rights under this subtitle.</text> </level> <level label="b"> <text>Any waiver by a homeowner of the provisions of this subtitle is void and unenforceable as contrary to public policy.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-318.1" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <text>It is a violation of this subtitle if a foreclosure consultant:</text> <level label="1"> <text>Fails to obtain a real estate broker’s license as required under § 7–308 of this subtitle; or</text> </level> <level label="2"> <text>Violates any provision of Title 17 of the Business Occupations and Professions Article.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-319" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>The Attorney General may seek an injunction to prohibit a person who has engaged or is engaging in a violation of this subtitle from engaging or continuing to engage in the violation.</text> </level> <level label="b"> <text>The court may enter any order or judgment necessary to:</text> <level label="1"> <text>Prevent the use by a person of any prohibited practice;</text> </level> <level label="2"> <text>Restore to a person any money or real or personal property acquired from the person by means of any prohibited practice; or</text> </level> <level label="3"> <text>Appoint a receiver in case of willful violation of this subtitle.</text> </level> </level> <level label="c"> <text>In any action brought by the Attorney General under this section, the Attorney General is entitled to recover the costs of the action for the use of the State.</text> </level> <level label="d"> <text>A violation of this subtitle is an unfair or deceptive trade practice within the meaning of Title 13 of the Commercial Law Article and is subject to the enforcement and penalty provisions contained in Title 13 of the Commercial Law Article.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-319.1" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>The Commissioner may enforce the provisions of this subtitle by exercising any of the powers provided under §§ 2–113 through 2–116 of the Financial Institutions Article.</text> </level> <level label="b"> <level label="1"> <text>The Commissioner may seek an injunction to prohibit a person who has engaged or is engaging in a violation of this subtitle from engaging or continuing to engage in the violation.</text> </level> <level label="2"> <text>The court may enter any order or judgment necessary to:</text> <level label="i"> <text>Prevent the use by a person of any prohibited practice;</text> </level> <level label="ii"> <text>Restore to a person any money or real or personal property acquired from the person by means of any prohibited practice; or</text> </level> <level label="iii"> <text>Appoint a receiver in case of willful violation of this subtitle.</text> </level> </level> <level label="3"> <text>In any action brought by the Commissioner under this subsection, the Commissioner is entitled to recover the costs of the action for the use of the State.</text> </level> </level> <level label="c"> <text>The Commissioner may enforce the provisions of this subtitle by requiring a violator to take affirmative action to correct the violation including the restitution of money or property to any person aggrieved by the violation.</text> </level> <level label="d"> <text>The Commissioner may:</text> <level label="1"> <text>Investigate violations of this subtitle; and</text> </level> <level label="2"> <text>Aid any other unit of State government that has regulatory jurisdiction over the business activities of the violator.</text> </level> </level> <level label="e"> <text>The Commissioner may cooperate in the investigation and prosecution of any violation of this subtitle with the Office of the Attorney General, the State’s Attorney, or any other unit of law enforcement.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-320" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <level label="1"> <text>In addition to any action by the Attorney General or the Commissioner authorized under this subtitle and any other action otherwise authorized by law, a homeowner may bring an action for damages incurred as the result of a practice prohibited by this subtitle.</text> </level> <level label="2"> <text>A homeowner may bring an action for damages under this section:</text> <level label="i"> <text>Without having to exhaust administrative remedies under this subtitle; and</text> </level> <level label="ii"> <text>Regardless of the status of an administrative action or a criminal prosecution, if any, under this subtitle.</text> </level> </level> </level> <level label="b"> <text>A homeowner who brings an action under this section and who is awarded damages may also seek, and the court may award, reasonable attorney’s fees.</text> </level> <level label="c"> <text>If the court finds that the defendant willfully or knowingly violated this subtitle, the court may award damages equal to three times the amount of actual damages.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-321" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>A person who violates any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding $10,000 or both.</text> </level> <level label="b"> <text>A person who violates this subtitle is subject to § 5-106(b) of the Courts Article.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-322" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <level label="a"> <text>If a criminal prosecution under this subtitle results in a conviction, the Attorney General or the State’s Attorney who has prosecuted the case shall notify the Commissioner in writing of the conviction within 30 days of the conviction.</text> </level> <level label="b"> <text>The notice required under subsection (a) of this section shall include:</text> <level label="1"> <text>The name and address of the person convicted; and</text> </level> <level label="2"> <text>A copy of the judgment in the criminal case.</text> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-325" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="3" subtitle_name="Protection of Homeowners in Foreclosure Act"> <text>This subtitle may be cited as the “Protection of Homeowners in Foreclosure Act”.</text> </section> <section article="grp" article_name="Real Property" number="7-401" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="4" subtitle_name="Maryland Mortgage Fraud Protection Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="a–1"> <text>“Commissioner” means the Commissioner of Financial Regulation in the Maryland Department of Labor.</text> </level> <level label="b"> <text>“Document” includes applications, appraisal reports, HUD–1 settlement statements, W–2 forms, verifications of income or employment, bank statements, tax returns, payroll stubs, and any required disclosure.</text> </level> <level label="c"> <text>“Homeowner” means:</text> <level label="1"> <text>A record owner of residential real property; or</text> </level> <level label="2"> <text>An individual occupying the residential real property under a use and possession order issued under Title 8, Subtitle 2 of the Family Law Article.</text> </level> </level> <level label="d"> <text>“Mortgage fraud” means any action by a person made with the intent to defraud that involves:</text> <level label="1"> <text>Knowingly making any deliberate misstatement, misrepresentation, or omission during the mortgage lending process with the intent that the misstatement, misrepresentation, or omission be relied on by a mortgage lender, borrower, or any other party to the mortgage lending process;</text> </level> <level label="2"> <text>Knowingly creating or producing a document for use during the mortgage lending process that contains a deliberate misstatement, misrepresentation, or omission with the intent that the document containing the misstatement, misrepresentation, or omission be relied on by a mortgage lender, borrower, or any other party to the mortgage lending process;</text> </level> <level label="3"> <text>Knowingly using or facilitating the use of any deliberate misstatement, misrepresentation, or omission during the mortgage lending process with the intent that the misstatement, misrepresentation, or omission be relied on by a mortgage lender, borrower, or any other party to the mortgage lending process;</text> </level> <level label="4"> <text>Receiving any proceeds or any other funds in connection with a mortgage closing that the person knows resulted from a violation of item (1), (2), or (3) of this subsection;</text> </level> <level label="5"> <text>Conspiring to violate any of the provisions of item (1), (2), (3), or (4) of this subsection; or</text> </level> <level label="6"> <text>Filing or causing to be filed in the land records in the county where a residential real property is located, any document relating to a mortgage loan that the person knows to contain a deliberate misstatement, misrepresentation, or omission.</text> </level> </level> <level label="e"> <level label="1"> <text>“Mortgage lending process” means the process by which a person seeks or obtains a mortgage loan.</text> </level> <level label="2"> <text>“Mortgage lending process” includes:</text> <level label="i"> <text>The solicitation, application, origination, negotiation, servicing, underwriting, signing, closing, and funding of a mortgage loan; and</text> </level> <level label="ii"> <text>The notarizing of any document in connection with a mortgage loan.</text> </level> </level> </level> <level label="f"> <text>“Mortgage loan” has the meaning stated in § 11–501 of the Financial Institutions Article.</text> </level> <level label="g"> <text>“Pattern of mortgage fraud” means two or more incidents of mortgage fraud that:</text> <level label="1"> <text>Involve two or more residential real properties; and</text> </level> <level label="2"> <text>Have similar intents, results, accomplices, victims, or methods of commission or otherwise are interrelated by distinguishing characteristics.</text> </level> </level> <level label="h"> <text>“Residential real property” means real property improved by four or fewer single family dwelling units.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-402" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="4" subtitle_name="Maryland Mortgage Fraud Protection Act"> <text>A person may not commit mortgage fraud. </text> </section> <section article="grp" article_name="Real Property" number="7-403" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="4" subtitle_name="Maryland Mortgage Fraud Protection Act"> <text>For the purpose of venue under this subtitle, a violation of this subtitle shall be considered to have been committed:</text> <level label="1"> <text>In the county in which the residential real property is located for which a mortgage loan is being sought;</text> </level> <level label="2"> <text>In the county in which an act was performed in furtherance of the violation;</text> </level> <level label="3"> <text>In the county in which a person alleged to have violated this subtitle had control or possession of any proceeds of the violation;</text> </level> <level label="4"> <text>If a closing occurred, in the county in which the closing occurred; and</text> </level> <level label="5"> <text>In the county in which a document containing a deliberate misstatement, misrepresentation, or omission is filed in the land records.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-404" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="4" subtitle_name="Maryland Mortgage Fraud Protection Act"> <level label="a"> <text>The Attorney General may seek an injunction to prohibit a person who has engaged or is engaging in a violation of this subtitle from engaging or continuing to engage in the violation.</text> </level> <level label="b"> <text>The court may enter any order or judgment necessary to:</text> <level label="1"> <text>Prevent the use by a person of any prohibited practice;</text> </level> <level label="2"> <text>Restore to a person any money or real or personal property acquired from the person by means of any prohibited practice; or</text> </level> <level label="3"> <text>Appoint a receiver in the case of a willful violation of this subtitle.</text> </level> </level> <level label="c"> <text>In any action brought by the Attorney General under this section, the Attorney General is entitled to recover the costs of the action for the use of the State.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-404.1" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="4" subtitle_name="Maryland Mortgage Fraud Protection Act"> <level label="a"> <text>The Commissioner may enforce the provisions of this subtitle by exercising any of the powers provided under §§ 2–113 through 2–116 of the Financial Institutions Article.</text> </level> <level label="b"> <level label="1"> <text>The Commissioner may seek an injunction to prohibit a person who has engaged or is engaging in a violation of this subtitle from engaging or continuing to engage in the violation.</text> </level> <level label="2"> <text>The court may enter any order or judgment necessary to:</text> <level label="i"> <text>Prevent the use by a person of any prohibited practice;</text> </level> <level label="ii"> <text>Restore to a person any money or real or personal property acquired from the person by means of any prohibited practice; or</text> </level> <level label="iii"> <text>Appoint a receiver in case of willful violation of this subtitle.</text> </level> </level> <level label="3"> <text>In any action brought by the Commissioner under this subsection, the Commissioner is entitled to recover the costs of the action for the use of the State.</text> </level> </level> <level label="c"> <text>The Commissioner may enforce the provisions of this subtitle by requiring a violator to take affirmative action to correct the violation including the restitution of money or property to any person aggrieved by the violation.</text> </level> <level label="d"> <text>The Commissioner may:</text> <level label="1"> <text>Investigate violations of this subtitle; and</text> </level> <level label="2"> <text>Aid any other unit of State government that has regulatory jurisdiction over the business activities of the violator.</text> </level> </level> <level label="e"> <text>The Commissioner may cooperate in the investigation and prosecution of any violation of this subtitle with the Office of the Attorney General, the State’s Attorney, or any other unit of law enforcement.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-405" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="4" subtitle_name="Maryland Mortgage Fraud Protection Act"> <level label="a"> <text>The Attorney General and the State’s Attorney are authorized to conduct the criminal investigation and prosecution of all cases of mortgage fraud under this subtitle.</text> </level> <level label="b"> <text>The Attorney General or the State’s Attorney, as appropriate, shall promptly report a conviction under this subtitle to the unit of State government that has regulatory jurisdiction over the business activities of the person convicted.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-406" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="4" subtitle_name="Maryland Mortgage Fraud Protection Act"> <level label="a"> <level label="1"> <text>In addition to any action authorized under this subtitle and any other action otherwise authorized by law, a person may bring an action for damages incurred as the result of a violation of this subtitle.</text> </level> <level label="2"> <text>A person may bring an action for damages under this section:</text> <level label="i"> <text>Without having to exhaust administrative remedies under this subtitle; and</text> </level> <level label="ii"> <text>Regardless of the status of an administrative action or a criminal prosecution, if any, under this subtitle.</text> </level> </level> </level> <level label="b"> <text>A person who brings an action under this section and who is awarded damages may also seek, and the court may award, reasonable attorney’s fees.</text> </level> <level label="c"> <text>If the court finds that the defendant violated this subtitle, the court may award damages equal to three times the amount of actual damages.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-407" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="4" subtitle_name="Maryland Mortgage Fraud Protection Act"> <level label="a"> <text>Except as provided in subsections (b) and (c) of this section, a person who violates this subtitle is guilty of a felony and on conviction is subject to a fine not exceeding $5,000 or imprisonment not exceeding 10 years or both.</text> </level> <level label="b"> <text>If a violation involves a victim who is a vulnerable adult as defined under § 3–604(a) of the Criminal Law Article, a person who violates this subtitle is guilty of a felony and on conviction is subject to a fine not exceeding $15,000 or imprisonment not exceeding 15 years or both.</text> </level> <level label="c"> <text>If a violation involves engaging or participating in a pattern of mortgage fraud or a conspiracy or endeavor to engage or participate in a pattern of mortgage fraud, a person who violates this subtitle is guilty of a felony and on conviction is subject to a fine not exceeding $100,000 or imprisonment not exceeding 20 years or both.</text> </level> <level label="d"> <level label="1"> <text>A person convicted of violating this subtitle shall pay restitution to any person damaged by the violation.</text> </level> <level label="2"> <text>Restitution shall be ordered in addition to a fine or imprisonment or both.</text> </level> </level> <level label="e"> <text>Each residential real property transaction subject to a violation of this subtitle constitutes a separate offense, and shall not merge with any other crimes set forth in the Criminal Law Article.</text> </level> <level label="f"> <text>A person who violates this subtitle is subject to § 5–106(b) of the Courts Article.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-408" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="4" subtitle_name="Maryland Mortgage Fraud Protection Act"> <level label="a"> <text>All real and personal property used or intended for use in the course of, derived from, or realized through a violation of this subtitle shall be subject to forfeiture to the State.</text> </level> <level label="b"> <text>The Attorney General and the State’s Attorney are authorized to commence forfeiture proceedings under this subtitle.</text> </level> <level label="c"> <text>The forfeiture of property under this subtitle shall be subject to Title 13, Subtitle 4 of the Criminal Procedure Article.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-409" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="4" subtitle_name="Maryland Mortgage Fraud Protection Act"> <text>This subtitle may be cited as the Maryland Mortgage Fraud Protection Act.</text> </section> <section article="grp" article_name="Real Property" number="7-501" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="5" subtitle_name="Maryland Mortgage Assistance Relief Services Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Commissioner” means the Commissioner of Financial Regulation in the Maryland Department of Labor.</text> </level> <level label="c"> <text>“Dwelling” has the meaning stated in 12 C.F.R. § 1015.2 and any subsequent revision of that regulation.</text> </level> <level label="d"> <text>“Mortgage assistance relief service” has the meaning stated in 12 C.F.R. § 1015.2 and any subsequent revision of that regulation.</text> </level> <level label="e"> <level label="1"> <text>“Mortgage assistance relief service provider” has the meaning stated in 12 C.F.R. § 1015.2 and any subsequent revision of that regulation.</text> </level> <level label="2"> <text>“Mortgage assistance relief service provider” incorporates the meanings of other terms stated in 12 C.F.R. § 1015.2 to the extent those terms are used to establish the meaning of “mortgage assistance relief service provider”.</text> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-502" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="5" subtitle_name="Maryland Mortgage Assistance Relief Services Act"> <text>A mortgage assistance relief service provider providing mortgage assistance relief service in connection with a dwelling in the State that does not comply with 12 C.F.R. §§ 1015.1 through 1015.11 and any subsequent revision of those regulations is in violation of this subtitle. </text> </section> <section article="grp" article_name="Real Property" number="7-503" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="5" subtitle_name="Maryland Mortgage Assistance Relief Services Act"> <text>The attorney exemptions in 12 C.F.R. § 1015.7 apply only to an individual admitted to practice law in the State who provides mortgage assistance relief service as part of the individual’s regular practice of law. </text> </section> <section article="grp" article_name="Real Property" number="7-504" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="5" subtitle_name="Maryland Mortgage Assistance Relief Services Act"> <text>For the purpose of venue under this subtitle, a violation of this subtitle shall be considered to have been committed:</text> <level label="1"> <text>In the county in which the dwelling is located for which mortgage assistance relief service is being provided;</text> </level> <level label="2"> <text>In the county in which an act was performed in furtherance of the violation; and</text> </level> <level label="3"> <text>In the county in which a person alleged to have violated this subtitle had control or possession of any proceeds of the violation.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-505" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="5" subtitle_name="Maryland Mortgage Assistance Relief Services Act"> <level label="a"> <text>The Attorney General may seek an injunction to prohibit a person who has engaged or is engaging in a violation of this subtitle from engaging or continuing to engage in the violation.</text> </level> <level label="b"> <text>The court may enter any order or judgment necessary to:</text> <level label="1"> <text>Prevent the use by a person of any prohibited practice;</text> </level> <level label="2"> <text>Restore to a person any money or real or personal property acquired from the person by means of any prohibited practice; or</text> </level> <level label="3"> <text>Appoint a receiver in case of willful violation of this subtitle.</text> </level> </level> <level label="c"> <text>In any action brought by the Attorney General under this section, the Attorney General is entitled to recover the costs of the action for the use of the State.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-506" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="5" subtitle_name="Maryland Mortgage Assistance Relief Services Act"> <level label="a"> <text>The Commissioner may enforce the provisions of this subtitle by exercising any of the powers provided under §§ 2–113 through 2–116 of the Financial Institutions Article.</text> </level> <level label="b"> <level label="1"> <text>The Commissioner may seek an injunction to prohibit a person who has engaged or is engaging in a violation of this subtitle from engaging or continuing to engage in the violation.</text> </level> <level label="2"> <text>The court may enter any order or judgment necessary to:</text> <level label="i"> <text>Prevent the use by a person of any prohibited practice;</text> </level> <level label="ii"> <text>Restore to a person any money or real or personal property acquired from the person by means of any prohibited practice; or</text> </level> <level label="iii"> <text>Appoint a receiver in case of willful violation of this subtitle.</text> </level> </level> <level label="3"> <text>In any action brought by the Commissioner under this section, the Commissioner is entitled to recover the costs of the action for the use of the State.</text> </level> </level> <level label="c"> <text>The Commissioner may enforce the provisions of this subtitle by requiring a violator to take affirmative action to correct the violation, including the restitution of money or property to any person aggrieved by the violation.</text> </level> <level label="d"> <text>The Commissioner may:</text> <level label="1"> <text>Investigate violations of this subtitle; and</text> </level> <level label="2"> <text>Aid any other unit of State government that has regulatory jurisdiction over the business activities of the violator.</text> </level> </level> <level label="e"> <text>The Commissioner may cooperate in the investigation and prosecution of any violation of this subtitle with:</text> <level label="1"> <text>The Office of the Attorney General, a State’s Attorney, or any other unit of law enforcement in the State; or</text> </level> <level label="2"> <text>The Federal Trade Commission, the Consumer Financial Protection Bureau, or the U.S. Department of Housing and Urban Development.</text> </level> </level> </section> <section article="grp" article_name="Real Property" number="7-507" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="5" subtitle_name="Maryland Mortgage Assistance Relief Services Act"> <level label="a"> <level label="1"> <text>In addition to any action authorized under this subtitle and any other action otherwise authorized by law, a person may bring an action for damages incurred as the result of a violation of this subtitle.</text> </level> <level label="2"> <text>A person may bring an action for damages under this section:</text> <level label="i"> <text>Without having to exhaust administrative remedies under this subtitle; and</text> </level> <level label="ii"> <text>Regardless of the status of an administrative action or a criminal prosecution, if any, under this subtitle.</text> </level> </level> </level> <level label="b"> <text>A person who brings an action under this section and who is awarded damages also may seek, and the court may award, reasonable attorney’s fees.</text> </level> <level label="c"> <text>If the court finds that the defendant violated this subtitle, the court may award damages equal to three times the amount of actual damages.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-508" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="5" subtitle_name="Maryland Mortgage Assistance Relief Services Act"> <level label="a"> <text>The Attorney General and the State’s Attorney are authorized to conduct the criminal investigation and prosecution of all cases alleging a violation of this subtitle.</text> </level> <level label="b"> <text>The Attorney General or the State’s Attorney, as appropriate, shall report promptly a conviction under this subtitle to the unit of State government that has regulatory jurisdiction over the business activities of the person convicted.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-509" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="5" subtitle_name="Maryland Mortgage Assistance Relief Services Act"> <level label="a"> <text>A person who violates any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding $10,000 or both.</text> </level> <level label="b"> <level label="1"> <text>A person convicted of violating this subtitle shall pay restitution to any person damaged by the violation.</text> </level> <level label="2"> <text>Restitution shall be ordered in addition to a fine or imprisonment or both.</text> </level> </level> <level label="c"> <text>Each violation of this subtitle constitutes a separate offense and shall not merge with any other crimes set forth in the Criminal Law Article.</text> </level> <level label="d"> <text>A person who violates this subtitle is subject to § 5–106(b) of the Courts Article.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-510" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="5" subtitle_name="Maryland Mortgage Assistance Relief Services Act"> <text>A violation of this subtitle is:</text> <level label="1"> <text>An unfair or deceptive trade practice within the meaning of Title 13 of the Commercial Law Article; and</text> </level> <level label="2"> <text>Subject to the enforcement and penalty provisions contained in Title 13 of the Commercial Law Article.</text> </level> </section> <section article="grp" article_name="Real Property" number="7-511" title_number="7" title_name="Mortgages, Deeds of Trust, and Vendor's Liens" subtitle_number="5" subtitle_name="Maryland Mortgage Assistance Relief Services Act"> <text>This subtitle may be cited as the Maryland Mortgage Assistance Relief Services Act.</text> </section>