EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0921*
HOUSE BILL 921
Q2, Q1 3lr2092
CF SB 855
By: Delegate Smith
Introduced and read first time: February 9, 2023
Assigned to: Ways and Means
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 9, 2023
CHAPTER ______
AN ACT concerning 1
Baltimore City – Property Tax – In Rem Foreclosure of Vacant or Nuisance 2
Property 3
FOR the purpose of authorizing certain vacant property and or nuisance property located 4
in Baltimore City to be subject to a certain in rem foreclosure process; requiring 5
service of a complaint for in rem foreclosure to be served in accordance with the 6
Maryland Rules; providing for the distribution of surplus proceeds from the sale of 7
property subject to an in rem foreclosure; authorizing an in rem foreclosure order to 8
be set aside under certain circumstances; providing for the redemption amounts 9
required to be paid when an in rem foreclosure is set aside; requiring certain 10
procedures for an in rem foreclosure; requiring Baltimore City to take certain actions 11
to compensate the interested parties in property that has value and is acquired 12
through an in rem foreclosure; specifying the title acquired in an in rem foreclosure; 13
specifying the circumstances under which an in rem foreclosure judgment may be 14
reopened; and generally relating to in rem foreclosure of vacant or nuisance property 15
in Baltimore City. 16
BY repealing and reenacting, with amendments, 17
Article – Tax – Property 18
Section 14–874 through 14–876 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2022 Supplement) 21
BY adding to 22
Article – Tax – Property 23 2 HOUSE BILL 921
Section 14–877 and 14–878 14–894 to be under the new part “Part VIII. Baltimore 1
City Judicial In Rem Foreclosure for Vacant or Nuisance Property” 2
Annotated Code of Maryland 3
(2019 Replacement Volume and 2022 Supplement) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Tax – Property 7
14–874. 8
(a) (1) [Real] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 9
SUBSECTION, REAL property may be subject to foreclosure and sale under this part only 10
if: 11
[(1)] (I) the property consists of a vacant lot or improved property cited 12
as vacant and unsafe or unfit for habitation or other authorized use on a housing or building 13
violation notice; and 14
[(2)] (II) the total amount of liens for unpaid taxes on the property exceeds 15
the lesser of the total value of the property as last determined by the Department or as 16
determined by an appraisal report prepared not more than 6 months before the filing of a 17
complaint under this section by a real estate appraiser who is licensed under Title 16 of the 18
Business Occupations and Professions Article. 19
(2) REAL PROPERTY LOCATED IN BALTIMORE CITY MAY BE SUBJECT 20
TO FORECLOSURE AND S ALE UNDER THIS PART IF: 21
(I) THE PROPERTY IS A VA CANT PROPERTY OR A N UISANCE 22
PROPERTY, AS DETERMINED UNDER THE BALTIMORE CITY BUILDING CODE; AND 23
(II) THE TOTAL AMOUNT OF LIENS FOR UNPAID TAX ES ON THE 24
PROPERTY EXCEEDS A P ERCENTAGE OF THE TOT AL VALUE OF THE PROP ERTY SET 25
BY LOCAL ORDINANCE B ASED ON THE VALUE OF THE PROPERTY AS LAST 26
DETERMINED BY THE DEPARTMENT OR AS DETE RMINED BY AN APPRAISAL REPO RT 27
PREPARED NOT MORE TH AN 6 MONTHS BEFORE THE FI LING OF A COMPLAINT UNDER 28
THIS SECTION BY A RE AL ESTATE APPRAISER WHO IS LICENSED UNDE R TITLE 16 OF 29
THE BUSINESS OCCUPATIONS AND PROFESSIONS ARTICLE. 30
(b) (1) A county or municipal corporation may authorize by law an in rem 31
foreclosure in accordance with this part. 32
(2) A law that authorizes an in rem foreclosure shall: 33
HOUSE BILL 921 3
(i) state the date after which real property may be subject to in rem 1
foreclosure under this part; 2
(ii) establish criteria for designating real property to be foreclosed 3
under this part; 4
(iii) authorize the county or municipal corporation to file a complaint 5
for an in rem foreclosure under this part; and 6
(iv) include administrative rules and procedures necessary to carry 7
out an in rem foreclosure under this part. 8
(c) (1) Subject to subsection (d) of this section, a county or municipal 9
corporation may authorize, by law, the sale of real property after an in rem foreclosure and 10
designate real property to be sold under this part. 11
(2) A law that authorizes a sale of real property after an in rem foreclosure 12
shall: 13
(i) state the date after which the real property may be subject to sale 14
after an in rem foreclosure under this part; 15
(ii) establish criteria for designating real property to be sold under 16
this part; and 17
(iii) include administrative rules and procedures necessary to carry 18
out a sale under this part. 19
(d) [Only] EXCEPT AS PROVIDED IN SUBSECTION (A)(2) OF THIS SECTION , 20
ONLY real property that consists of a vacant lot or improved property cited as vacant and 21
unsafe or unfit for habitation or other authorized use on a housing or building violation 22
notice may be sold under this part. 23
14–875. 24
(a) A county or municipal corporation may file a complaint for an in rem 25
foreclosure action in accordance with this part. 26
(b) The county or municipal corporation may not file a complaint for an in rem 27
foreclosure action unless: 28
(1) the tax on the real property has been delinquent for at least 6 months; 29
and 30
(2) (I) the right to appeal the notice of the property as vacant and 31
unsafe or unfit has tolled; OR 32
4 HOUSE BILL 921
(II) THE RIGHT TO APPEAL THE NOTICE OF THE PR OPERTY AS 1
VACANT PROPERTY OR A NUISANCE PROPERTY , AS DETERMINED UNDER THE 2
BALTIMORE CITY BUILDING CODE, HAS TOLLED. 3
(c) All taxes shall: 4
(1) be included in the foreclosure action; and 5
(2) cease to be a lien against the real property if a judgment is entered 6
foreclosing the existing interests of all interested parties in the real property. 7
(d) The county or municipal corporation shall: 8
(1) file the complaint for an in rem foreclosure in the circuit court of the 9
county where the real property is located; and 10
(2) [within 5 days after filing the complaint, send notice and a copy of] 11
SERVE the complaint to each interested party [by first–class mail and certified mail, 12
postage prepaid, return receipt requested, bearing a postmark from the United States 13
Postal Service] IN ACCORDANCE WITH T HE MARYLAND RULES. 14
(e) The complaint for an in rem foreclosure shall include: 15
(1) the identity of the county or municipal corporation on behalf of which 16
the complaint is filed; 17
(2) the name and address of the county or municipal corporation; 18
(3) a description of the real property as it appears in the county land 19
records; 20
(4) the tax identification number of the real property; 21
(5) a statement that the taxes are delinquent at the time of the filing; 22
(6) the amount of taxes that are delinquent as of the date of filing; 23
(7) the names and last known addresses of all interested parties in the real 24
property and, if applicable, a statement that the address of a particular interested party in 25
the real property is unknown; 26
(8) a statement that the real property is: 27
(I) a vacant lot or improved property cited as vacant and unsafe or 28
unfit for habitation or other authorized use on a housing or building violation notice; OR 29
HOUSE BILL 921 5
(II) A VACANT PROPERTY OR A NUISANCE PROPERTY , AS 1
DETERMINED UNDER THE BALTIMORE CITY BUILDING CODE; 2
(9) copies of any violation notice cited under paragraph (8) of this 3
subsection; 4
(10) a request that the circuit court not schedule a hearing on the complaint 5
until 30 days after the date that the complaint is filed; and 6
(11) a request that the circuit court enter a judgment that forecloses the 7
existing interests of all interested parties in the real property and orders ownership of the 8
real property to be transferred to the county or municipal corporation. 9
(f) A complaint for an in rem foreclosure may be amended to include all taxes 10
that become delinquent after the commencement of the in rem foreclosure action. 11
(g) (1) Subject to paragraph (2) of this subsection, an interested party has the 12
right to cure the delinquent taxes and liens on the real property by paying all past due fees, 13
payments, and penalties at any time before the entry of the foreclosure judgment. 14
(2) The right to cure the delinquent taxes and liens on the real property 15
extinguishes once the foreclosure judgment is entered. 16
14–876. 17
(a) A circuit court may not set a hearing for an in rem foreclosure until 30 days 18
after the complaint for an in rem foreclosure is filed. 19
(b) At the hearing, any interested party shall have the right to be heard and to 20
contest the delinquency of the taxes and the adequacy of the proceedings. 21
(c) If the circuit court finds that the county or municipal corporation sent notice 22
and a copy of the complaint to each interested party in accordance with § 14–875(d) of this 23
subtitle and that the information set forth in the complaint is accurate, the court shall: 24
(1) enter a judgment that: 25
(i) proper notice has been provided to all interested parties; and 26
(ii) the real property is: 27
1. a vacant lot or an improved property cited as vacant and 28
unsafe or unfit for habitation or other authorized use on a housing or building violation 29
notice; OR 30
6 HOUSE BILL 921
2. A VACANT PROPERTY OR A NUISANCE PROPERTY , AS 1
DETERMINED UNDER THE BALTIMORE CITY BUILDING CODE; and 2
(2) order that ownership of the real property be transferred to the county 3
or municipal corporation on behalf of which the complaint was filed. 4
(d) (1) The county or municipal corporation shall record a judgment under 5
subsection (c) of this section in the land records of the county. 6
(2) The title acquired in an in rem foreclosure proceeding shall be an 7
absolute or fee simple title including the right, title, and interest of each of the defendants 8
in the proceeding whose property has been foreclosed unless a different title is specified in 9
the judgment entered. 10
(3) A judgment in an action under this part is binding and conclusive, 11
regardless of legal disability, on: 12
(i) all persons, known and unknown, who were parties to the action 13
and who had a claim to the property, whether present or future, vested or contingent, legal 14
or equitable, or several or undivided; and 15
(ii) all persons who were not parties to the action and had a claim to 16
the property that was not recorded at the time that the action was commenced. 17
14–877. 18
(A) IN THIS SECTION, “SURPLUS PROCEEDS ” MEANS THE PROCEEDS F ROM 19
THE SALE OF PROPERTY SOLD WITHIN 1 YEAR FROM WHEN THE P ROPERTY WAS 20
OBTAINED BY A COUNTY OR MUNICIPAL CORPORA TION THROUGH AN IN R EM 21
FORECLOSURE , THAT EXCEED THE SUM OF: 22
(1) THE DELINQUENT TAXES , FEES, AND PENALTIES ON THE 23
PROPERTY; AND 24
(2) THE VALUE OF ALL IMP ROVEMENTS MADE ON TH E PROPERTY AND 25
ALL COSTS INCURRED W ITH RESPECT TO DEVEL OPMENT OF THE PROPER TY PRIOR 26
TO THE SALE BY THE C OUNTY OR MUNICIPAL C ORPORATION . 27
(B) (1) SURPLUS PROCEEDS SHAL L BE HE LD BY A COUNTY OR 28
MUNICIPALITY FOR A P ERIOD OF 12 MONTHS. 29
(2) AFTER 12 MONTHS, SURPLUS PROCEEDS SHA LL BE DISTRIBUTED 30
TO ANY PERSON WITH A N OUTSTANDING CLAIM ON THE PROPERTY , IN ORDER OF 31
PRIORITY. 32
HOUSE BILL 921 7
(C) EACH COUNTY AND MUNIC IPALITY SHALL MAINTA IN A LIST OF 1
PROPERTIES OBTAINED THROUGH IN REM FOREC LOSURE THAT HAVE BEE N SOLD 2
WITHIN 1 YEAR FROM WHEN THE P ROPERTY WAS OBTAINED AND FOR WHICH THE 3
SALE HAS RESULTED IN SURPLUS PROCEEDS . 4
14–878. 5
(A) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 6
COURT MAY NOT REOPEN A JUDGMENT RENDERED IN AN IN REM FORECLO SURE 7
PROCEEDING IN ACCORD ANCE WITH THIS PART EXCEPT ON THE GROUND OF LACK 8
OF JURISDICTION OR F RAUD IN THE CONDUCT OF THE PROCEEDINGS T O 9
FORECLOSE. 10
(2) A COURT MAY NOT REOPEN ANY JUDGMENT UNDER PARAGRAPH 11
(1) OF THIS SUBSECTION O N THE GROUND OF CONS TRUCTIVE FRAUD IN TH E 12
CONDUCT OF THE PROCE EDINGS TO FORECLOSE UNLESS AN APPLICATIO N TO 13
REOPEN A JUDGMENT RE NDERED IS FILED WITH IN 1 YEAR FROM THE DATE O F THE 14
JUDGMENT. 15
(B) A PLAINTIFF IN AN ACTI ON TO REOPEN AN IN REM FOR ECLOSURE 16
JUDGMENT SHALL : 17
(1) EXCEPT AS PROVIDED I N SUBSECTION (A)(2) OF THIS SECTION , 18
FILE THE ACTION WITH IN 3 YEARS OF THE ISSUANC E OF THE IN REM FORE CLOSURE 19
JUDGMENT; AND 20
(2) WITHIN 30 DAYS OF FILING THE A CTION, SUBMIT EVIDENCE TO 21
THE COURT THAT THE P LAINTIFF HAS OBTAINE D A BOND EQUAL TO TH E 22
REASONABLE VALUE OF THE PROPERTY . 23
(C) IF AN IN REM FORECLOS URE JUDGMENT OF THE COURT IS SET ASIDE , 24
THE AMOUNT REQUIRED TO REDEEM IS: 25
(1) THE AMOUNT REQUIRED BY THIS SUBTITLE; AND 26
(2) THE REASONABLE VALUE , AT THE DATE THE JUDG MENT IS SET 27
ASIDE, OF ALL IMPROVEMENTS MADE ON THE PROPERTY AND ALL COSTS INCURR ED 28
WITH RESPECT TO DEVE LOPMENT OF THE PROPE RTY BY THE PURCHASER AND THE 29
PURCHASER ’S SUCCESSORS IN INTE REST. 30
14–892. RESERVED. 31
14–893. RESERVED. 32
8 HOUSE BILL 921
PART VIII. BALTIMORE CITY JUDICIAL IN REM FORECLOSURE FOR VACANT OR 1
NUISANCE PROPERTY. 2
14–894. 3
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 4
INDICATED. 5
(2) “INTERESTED PARTY ” MEANS ANY PERSON HAV ING AN INTEREST 6
IN A VACANT OR NUISA NCE PROPERTY : 7
(I) WHO LAST APPEARS AS OWNER OF THE PROPERT Y ON THE 8
COLLECTOR’S TAX ROLL; 9
(II) WHO IS A MORTGAGEE O F THE PROPERTY OR AS SIGNEE OF 10
A MORTGAGE OF RECORD ; 11
(III) WHO IS A HOLDER OF A BENEFICIAL INTE REST IN A DEED OF 12
TRUST RECORDED AGAIN ST THE PROPERTY ; 13
(IV) WHO IS A TAXING AGEN CY THAT HAS THE AUTH ORITY TO 14
COLLECT TAX ON THE P ROPERTY; OR 15
(V) WHOSE IDENTITY AND A DDRESS ARE: 16
1. REASONABLY ASCERTAIN ABLE FROM THE COUNTY 17
LAND RECORDS ; OR 18
2. REVEALED BY A FULL T ITLE SEARCH CONSISTI NG OF 19
AT LEAST 50 YEARS. 20
(3) “TAX” HAS THE MEANING STAT ED IN § 14–801 OF THIS SUBTITLE . 21
(4) “VACANT OR NUISANCE PR OPERTY” MEANS A VACANT LOT O R 22
IMPROVED PROPERTY DE TERMINED TO BE A VAC ANT PROPERTY OR A NU ISANCE 23
PROPERTY UNDER THE BALTIMORE CITY BUILDING CODE. 24
(5) “VALUE” MEANS THAT THE TOTAL AMOUNT OF LIENS FOR UNPAID 25
TAXES ON A PROPERTY DOES NOT EXCEED THE LESSER OF THE TOTAL VALUE OF THE 26
PROPERTY AS LAST DET ERMINED BY THE DEPARTMENT OR AS DETE RMINED BY AN 27
APPRAISAL REPORT PRE PARED NOT MORE THAN 6 MONTHS BEFORE THE FI LING OF 28
A COMPLAINT UNDER TH IS SECTION BY A REAL ESTATE APPRAISER WHO IS 29
LICENSED UNDER TITLE 16 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS 30
ARTICLE. 31 HOUSE BILL 921 9
(B) (1) IN ACCORDANCE WITH TH IS SECTION, BALTIMORE CITY MAY 1
AUTHORIZE, BY LAW, AN IN REM FORECLOSUR E OF VACANT OR NUISA NCE PROPERTY 2
ON WHICH THE TAXES A RE IN ARREARS. 3
(2) A LAW THAT AUTHORIZES AN IN REM FO RECLOSURE OF VACANT 4
OR NUISANCE PROPERTY SHALL: 5
(I) STATE THE DATE AFTER WHICH REAL PROPERTY MAY BE 6
SUBJECT TO IN REM FO RECLOSURE; 7
(II) ESTABLISH CRITERIA F OR DESIGNATING REAL PROPERTY 8
TO BE FORECLOSED UND ER THIS SECTION; 9
(III) AUTHORIZE BALTIMORE CITY TO FILE A COMPLA INT FOR 10
AN IN REM FORECLOSUR E; AND 11
(IV) INCLUDE ADMINISTRATI VE RULES AND PROCEDU RES 12
NECESSARY TO CARRY O UT AN IN REM FORECLO SURE OF VACANT OR NU ISANCE 13
PROPERTY. 14
(C) BALTIMORE CITY MAY NOT FILE A C OMPLAINT FOR AN IN R EM 15
FORECLOSURE ACTION U NDER THIS SECTION UN LESS: 16
(1) THE TAXES ON THE REA L PROPERTY HAVE BEEN DELINQUENT 17
FOR AT LEAST 6 MONTHS; AND 18
(2) THE RIGHT TO APPEAL THE NOTICE OF THE PR OPERTY AS VACANT 19
OR NUISANCE PROPERTY HAS TOLLED. 20
(D) TO INITIATE AN IN REM FORECLOSURE ACTION , BALTIMORE CITY 21
SHALL: 22
(1) FILE A COMPLAINT FOR AN IN REM FORECLOSUR E IN THE CIRCUIT 23
COURT FOR BALTIMORE CITY; AND 24
(2) SERVE THE COMPLAINT TO EACH INTERESTED P ARTY IN 25
ACCORDANCE WITH THE MARYLAND RULES. 26
(E) ALL TAXES SHALL: 27
(1) BE INCLUDED IN THE F ORECLOSURE ACTION ; AND 28
10 HOUSE BILL 921
(2) CEASE TO BE A LIEN A GAINST THE PROPERTY IF A JUDGMENT IS 1
ENTERED FORECLOSING THE EXISTING INTERES TS OF ALL INTERESTED PARTIES IN 2
THE PROPERTY . 3
(F) THE COMPLAINT FOR AN IN REM FORECLOSURE S HALL INCLUDE : 4
(1) THE NAME AND ADDRESS OF THE APPROPRIATE A GENCY OF 5
BALTIMORE CITY; 6
(2) A DESCRIPTION OF THE PROPERTY AS IT APPEA RS IN THE LAND 7
RECORDS; 8
(3) THE TAX IDENTIFICATI ON NUMBER OF THE PRO PERTY; 9
(4) A STATEMENT THAT THE TAXES ARE DELINQUENT AT THE TIME OF 10
THE FILING; 11
(5) THE AMOUNT OF TAXES THAT ARE DELINQUENT AS OF THE DATE 12
OF THE FILING; 13
(6) THE NAMES AND LAST K NOWN ADDRESSES OF AL L INTERESTED 14
PARTIES IN THE PROPE RTY AND, IF APPLICABLE, A STATEMENT THAT THE ADDRESS 15
OF A PARTICULAR INTE RESTED PARTY IN THE PROPE RTY IS UNKNOWN ; 16
(7) A STATEMENT THAT THE REAL PROPERTY IS A V ACANT OR 17
NUISANCE PROPERTY ; 18
(8) COPIES OF ANY VIOLAT ION NOTICE CITED UND ER ITEM (7) OF 19
THIS SUBSECTION ; AND 20
(9) A REQUEST THAT THE C IRCUIT COURT ENTER A JUDGMENT THAT 21
FORECLOSES THE EXIST ING INTERESTS OF ALL INTERESTED PARTIES I N THE REAL 22
PROPERTY. 23
(G) A COMPLAINT FOR AN IN REM FORECLOSURE MAY BE AMENDED TO 24
INCLUDE ALL TAXES TH AT BECOME DELINQUENT AFTER THE COMMENCEME NT OF 25
THE IN REM FORECLOSU RE ACTION. 26
(H) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AN 27
INTERESTED PARTY HAS THE RIGHT TO CURE TH E DELINQUENT TAXES O N THE 28
PROPERTY BY PAYING A LL PAST DUE TAXES AT ANY TIME BEFORE THE ENTRY OF 29
THE FORECLOSURE JUDG MENT. 30
HOUSE BILL 921 11
(2) THE RIGHT TO CURE THE DELINQUENT TAXE S ON THE PROPERTY 1
IS EXTINGUISHED ONCE THE FORECLOSURE JUDG MENT IS ENTERED . 2
(I) THE CIRCUIT COURT MAY NOT SET A HEARING FO R AN IN REM 3
FORECLOSURE UNTIL 30 DAYS AFTER THE COMPL AINT FOR AN IN REM 4
FORECLOSURE IS FILED . 5
(J) AT THE HEARING , ANY INTERESTED P ARTY SHALL HAVE THE RIGHT TO 6
BE HEARD AND TO CONT EST THE DELINQUENCY OF THE TAXES AND THE ADEQUACY 7
OF THE PROCEEDINGS . 8
(K) IF THE CIRCUIT COURT FINDS THAT THE COMPL AINT WAS SERVED ON 9
EACH INTERESTED PART Y AND THAT THE INFOR MATION SET FORTH IN THE 10
COMPLAINT IS ACCURAT E, THE COURT SHALL : 11
(1) ENTER A JUDGMENT THA T: 12
(I) PROPER NOTICE HAS BE EN PROVIDED TO ALL I NTERESTED 13
PARTIES; 14
(II) THE REAL PROPERTY IS A VACANT OR NUISANCE PROPERTY; 15
AND 16
(III) FORECLOSES THE EXIST ING INTERESTS OF ALL 17
INTERESTED PARTIES IN THE REAL PROPERTY ; AND 18
(2) ORDER THAT OWNERSHIP OF THE REAL PROPERTY BE 19
TRANSFERRED TO BALTIMORE CITY. 20
(L) BALTIMORE CITY SHALL RECORD A J UDGMENT UNDER SUBSEC TION (K) 21
OF THIS SECTION IN T HE LAND RECORDS . 22
(M) (1) IF PROPERTY SUBJECT T O FORECLOSURE UNDER THIS SECTION 23
HAS VALUE, BALTIMORE CITY SHALL: 24
(I) SELL THE PROPERTY AT PUBLIC AUCTION IN AC CORDANCE 25
WITH SUBSECTION (N) OF THIS SECTION; OR 26
(II) COMPENSATE THE INTER ESTED PARTIES IN THE PROPERTY 27
IN ACCORDA NCE WITH SUBSECTION (O) OF THIS SECTION. 28
(2) IF PROPERTY SUBJECT T O FORECLOSURE UNDER THIS SECTION 29
DOES NOT HAVE VALUE , BALTIMORE CITY MAY RETAIN TITLE TO THE PROPERTY 30
WITHOUT PROVIDING CO MPENSATION TO THE IN TERESTED PARTIES . 31 12 HOUSE BILL 921
(N) (1) A SALE OF PROPERTY SUBJECT TO FORECLOSURE UNDER TH IS 1
SECTION SHALL BE CON DUCTED AT PUBLIC AUC TION IN ACCORDANCE W ITH THE 2
MARYLAND RULES. 3
(2) PROPERTY MAY NOT BE S OLD UNTIL AT LEAST 45 DAYS AFTER THE 4
ENTRY OF JUDGMENT OF FORECLOSURE . 5
(3) THE MINIMUM BID FOR T HE SALE OF THE PROPERTY SHALL BE 6
THE TOTAL AMOUNT OF LIENS FOR UNPAID TAX ES ON THE PROPERTY . 7
(4) THE PROPERTY SHALL BE SOLD TO THE PERSON M AKING THE 8
HIGHEST BID. 9
(5) THE PERSON MAKING THE HIGHEST BID SHALL PA Y THE FULL BID 10
AMOUNT TO BALTIMORE CITY. 11
(6) IF THE MINIMUM BID IS NOT MADE OR EXCEEDED , BALTIMORE 12
CITY MAY BID THE MINI MUM BID PRICE AND PU RCHASE THE PROPERTY . 13
(7) BALTIMORE CITY SHALL DEPOSIT IN AN ESCROW ACCOUNT AN Y 14
AMOUNT BY WHICH THE HIGHEST BID EXCEEDS : 15
(I) THE AMOUNT OF TAXES DUE ON THE PROPERTY ; AND 16
(II) THE VALUE OF ALL IMP ROVEMENTS MADE ON TH E 17
PROPERTY AND ALL COS TS INCURRED WITH RES PECT TO DEVELOPMENT OF THE 18
PROPERTY BEFORE THE SALE OF THE PROPERTY BY BALTIMORE CITY. 19
(8) THE CIRCUIT COURT SHA LL DISTRIBUTE THE FU NDS DEPOSITED 20
INTO THE ESCROW ACCO UNT TO THE INTERESTE D PARTIES IN THE ORD ER OF 21
PRIORITY OF THE INTE RESTS OF THE INTERES TED PARTIES. 22
(9) AFTER A SALE , BALTIMORE CITY SHALL FILE A NOT ICE 23
INFORMING THE CIRCUI T COURT OF THE SALE AND STATING THE DATE OF THE SALE, 24
THE SALE PRICE, AND THE IDENTITY OF THE PURCHASER . 25
(10) A SALE OF A PROPERTY U NDER THIS SECTION IS FINAL AND 26
BINDING ON THE MAKER OF THE HIGHEST BID . 27
(O) (1) TO COMPENSATE THE INT ERESTED PARTIES IN A PROPERTY THAT 28
HAS VALUE WITHOUT SE LLING THE PROPERTY , BALTIMORE CITY SHALL: 29
HOUSE BILL 921 13
(I) OBTAIN AN APPRAISAL OF THE PROPERTY BY A REAL 1
ESTATE APPRAISER WHO IS LICENSED UNDER TITLE 16 OF THE BUSINESS 2
OCCUPATIONS AND PROFESSIONS ARTICLE; AND 3
(II) DEPOSIT IN AN ESCROW ACCOUNT THE AMOUNT B Y WHICH 4
THE APPRAISAL EXCEED S THE AMOUNT OF TAXE S DUE ON THE PROPERT Y. 5
(2) THE CIRCUIT COURT SHA LL DISTRIBUTE THE FU NDS DEPOSITED 6
INTO THE ESCROW ACCO UNT TO THE INTERESTE D PARTIES IN THE ORD ER OF 7
PRIORITY OF THE INTERESTS OF THE INT ERESTED PARTIES . 8
(P) (1) THE TITLE ACQUIRED IN AN IN REM FORECLOSUR E PROCEEDING 9
SHALL BE AN ABSOLUTE OR FEE SIMPLE TITLE INCLUDING THE RIGHT , TITLE, AND 10
INTEREST OF EACH OF THE DEFENDANTS IN TH E PROCEEDING WHOSE P ROPERTY 11
HAS BEEN FOR ECLOSED UNLESS A DIF FERENT TITLE IS SPEC IFIED IN THE 12
JUDGMENT ENTERED . 13
(2) A JUDGMENT IN AN ACTIO N UNDER THIS SECTION IS BINDING AND 14
CONCLUSIVE, REGARDLESS OF LEGAL DISABILITY, ON: 15
(I) ALL PERSONS, KNOWN AND UNKNOWN , WHO WERE PARTIES 16
TO THE ACTION A ND WHO HAD A CLAIM T O THE PROPERTY , WHETHER PRESENT OR 17
FUTURE, VESTED OR CONTINGENT , LEGAL OR EQUITABLE , OR SEVERAL OR 18
UNDIVIDED; AND 19
(II) ALL PERSONS WHO WERE NOT PARTIES TO THE A CTION AND 20
HAD A CLAIM TO THE P ROPERTY THAT WAS NOT RECORDED AT THE TIME THAT THE 21
ACTION WAS COMMENCED . 22
(Q) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 23
COURT MAY NOT REOPEN A JUDGMENT RENDERED IN AN IN REM FORECLO SURE 24
PROCEEDING IN ACCORD ANCE WITH THIS SECTI ON EXCEPT ON THE GRO UND OF 25
LACK OF JURISDICTION OR FRAUD IN THE CONDUCT OF THE PROCEEDINGS T O 26
FORECLOSE. 27
(2) A COURT MAY NOT REOPEN ANY JUDGMENT UNDER P ARAGRAPH 28
(1) OF THIS SUBSECTION O N THE GROUND OF CONS TRUCTIVE FRAUD IN TH E 29
CONDUCT OF THE PROCE EDINGS TO FORECLOSE UNLESS AN APPLICATIO N TO 30
REOPEN A JU DGMENT RENDERED IS F ILED WITHIN 1 YEAR AFTER THE DATE OF THE 31
JUDGMENT. 32
(R) A PLAINTIFF IN AN ACTI ON TO REOPEN AN IN R EM FORECLOSURE 33
JUDGMENT UNDER THIS SECTION SHALL : 34
14 HOUSE BILL 921
(1) EXCEPT AS PROVIDED I N SUBSECTION (Q)(2) OF THIS SECTION , 1
FILE THE ACTION WITH IN 3 YEARS AFTER THE ISSU ANCE OF THE IN REM 2
FORECLOSURE JUDGMENT ; 3
(2) PAY ALL TAXES DUE ON THE PROPERTY BEFORE FILING THE 4
ACTION; AND 5
(3) WITHIN 30 DAYS AFTER FILING TH E ACTION, SUBMIT EVIDENCE 6
TO THE COURT THAT TH E PLAINTIFF HAS OBTA INED A BOND EQUAL TO THE 7
REASONABLE VALUE OF THE PROPERTY . 8
(S) IF AN IN REM FORECLOS URE JUDGMENT OF THE COURT IS SET ASIDE , 9
THE AMOUNT REQUIRED TO REDEEM IS EQUAL T O THE SUM OF: 10
(1) THE AMOUNT REQUIRED BY TH IS SUBTITLE; AND 11
(2) THE REASONABLE VALUE , AT THE DATE THE JUDG MENT IS SET 12
ASIDE, OF ALL IMPROVEMENTS MADE ON THE PROPERTY AND ALL COSTS INCURR ED 13
WITH RESPECT TO DEVE LOPMENT OF THE PROPE RTY BY THE PURCHASER AND THE 14
PURCHASER ’S SUCCESSORS IN INTEREST . 15
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2023. 17
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.