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*hb0523*
HOUSE BILL 523
N1 6lr1056
HB 769/25 – ENT CF SB 353
By: Delegates D. Jones, Stewart, Lehman, Allen, Bagnall, Behler, Chang,
Crutchfield, Embry, Feldmark , Foley, Fraser –Hidalgo, Guyton, Guzzone,
Hill, Martinez, Moon, Moreno, Palakovich Carr, Pruski, Roberts, Ruff,
Solomon, Toles, Watson, and Williams
Introduced and read first time: January 27, 2026
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 27, 2026
CHAPTER ______
AN ACT concerning 1
Real Property – Residential Foreclosures – Commencement Restrictions 2
FOR the purpose of establishing certain restrictions for the commencement of a foreclosure 3
and an order to docket or a complaint to foreclose a mortgage or deed of trust on 4
residential property; and generally relating to an action to foreclose a mortgage or 5
deed of trust on residential property. 6
BY repealing and reenacting, without amendments, 7
Article – Real Property 8
Section 7–105.1(a)(1), (8), and (12) and (b) 9
Annotated Code of Maryland 10
(2023 Replacement Volume and 2025 Supplement) 11
BY repealing and reenacting, with amendments, 12
Article – Real Property 13
Section 7–105.1(e) 14
Annotated Code of Maryland 15
(2023 Replacement Volume and 2025 Supplement) 16
BY adding to 17
Article – Real Property 18
Section 7–105.1(e–1) 19
2 HOUSE BILL 523
Annotated Code of Maryland 1
(2023 Replacement Volume and 2025 Supplement) 2
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3
That the Laws of Maryland read as follows: 4
Article – Real Property 5
7–105.1. 6
(a) (1) In this section the following words have the meanings indicated. 7
(8) “Owner–occupied residential property” means residential proper ty in 8
which at least one unit is occupied by an individual who: 9
(i) Has an ownership interest in the property; and 10
(ii) Uses the property as the individual’s primary residence. 11
(12) “Residential property” means real property improved by four or fewer 12
single family dwelling units that are designed principally and are intended for human 13
habitation. 14
(b) (1) Except as provided in paragraph (2) of this subsection, an action to 15
foreclose a mortgage or deed of trust on residential property may not be filed until the later 16
of: 17
(i) 90 days after a default in a condition on which the mortgage or 18
deed of trust provides that a sale may be made; or 19
(ii) 45 days after the notice of intent to foreclose required under 20
subsection (c) of this section is sent. 21
(2) (i) The secured party may petition the circuit court for leave to 22
immediately commence an action to foreclose the mortgage or deed of trust if: 23
1. The loan secured by the mortgage or deed of trust was 24
obtained by fraud or deception; 25
2. No payments have ever been made on the loan secured by 26
the mortgage or deed of trust; 27
3. The property subject to the mortgage or deed of trust has 28
been destroyed; 29
4. The default occurred after the stay has been lifted in a 30
bankruptcy proceeding; or 31
HOUSE BILL 523 3
5. The property subject to the mortgage or deed of trust is 1
property that is vacant and abandoned as provided under § 7–105.18 of this subtitle. 2
(ii) The court may rule on the petition with or without a hearing. 3
(iii) If the petition is granted: 4
1. The action may be filed at any time after a default in a 5
condition on which the mortgage or deed of trust provides that a sale may be made; and 6
2. The secured party need not send the written notice of 7
intent to foreclose required under subsection (c) of this section. 8
(e) An order to docket or a complaint to foreclose a mortgage or deed of trust on 9
residential property shall: 10
(1) Include: 11
(i) If applicable, the license number of: 12
1. The mortgage originator; and 13
2. The mortgage lender; and 14
(ii) An affidavit stating: 15
1. The date on which the default occurred and the nature of 16
the default; and 17
2. If applicable, that: 18
A. A notice of intent to foreclose was sent to the mortgagor or 19
grantor in accordance w ith subsection (c) of this section and the date on which the notice 20
was sent; and 21
B. At the time the notice of intent to foreclose was sent, the 22
contents of the notice of intent to foreclose were accurate; [and] 23
(2) Be accompanied by: 24
(i) The original or a certified copy of the mortgage or deed of trust; 25
(ii) A statement of the debt remaining due and payable supported by 26
an affidavit of the plaintiff or the secured party or the agent or attorney of the plaintiff or 27
secured party; 28
4 HOUSE BILL 523
(iii) A copy of the debt instrument accompanied by an affidavit 1
certifying ownership of the debt instrument; 2
(iv) If applicable, the original or a certified copy of the assignment of 3
the mortgage for purposes of foreclosure or the deed of appointment of a substitute trustee; 4
(v) If any defendant is an individual, an affidavit that is in 5
compliance with § 521 of the Servicemembers Civil Relief Act, 50 U.S.C. App. § 501 et seq.; 6
(vi) If applicable, a copy of the notice of intent to foreclose; 7
(vii) If the secured party and mortgagor or grantor have elected to 8
participate in prefile mediation, the report of the prefile mediation issued by the Office of 9
Administrative Hearings; 10
(viii) If the secured party and the mortgagor or grantor have not 11
elected to participate in prefile mediation, a statement that the parties have not elected to 12
participate in prefile mediation; 13
(ix) In addition to any other filing fees required by law, a filing fee in 14
the amount of $450; and 15
(x) 1. If the loss mitigation analysis has been completed subject 16
to subsection (g) of this section, a final loss mitigation affidavit in the form prescribed by 17
regulation adopted by the Commissioner of Financial Regulation; and 18
2. If the loss mitigation analysis has not been completed, a 19
preliminary loss mitigation affidavit in the form prescribed by regulation adopted by the 20
Commissioner of Financial Regulation; AND 21
(3) BE COMMENCED NOT LATER THAN 10 YEARS AFTER THE DATE OF 22
DEFAULT CLAIMED IN THE ORDER TO DOCKET O R COMPLAINT TO FORECLOSE THE 23
DATE OF THE LAST PAYMENT. 24
(E–1) IF A FORECLOSURE IS C OMMENCED BY A SECURE D PARTY THAT 25
ACQUIRED DEBT THAT W AS IN DEFAULT FOR 5 OR MORE YEARS BEFORE THE 26
ACQUISITION, THE SECURED PARTY SH ALL PRESENT THE DOCU MENTS REQUIRED 27
UNDER § 5–1203(B) OF THE COURTS ARTICLE WITH THE ORDE R TO DOCKET OR 28
COMPLAINT TO FORECLOSE. 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 30
1, 2026. 31