WES MOORE, Governor Ch. 408
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Chapter 408
(Senate Bill 855)
AN ACT concerning
Baltimore City – Property Tax – In Rem Foreclosure of Vacant or Nuisance
Property
FOR the purpose of authorizing certain vacant property and or nuisance property located
in Baltimore City to be subject to a certain in rem foreclosure process; requiring
service of a complaint for in rem foreclosure to be served in accordance with the
Maryland Rules; providing for the distribution of surplus proceeds from the sale of
property subject to an in rem foreclosure; authorizing an in rem foreclosure order to
be set aside under certain circumstances; providing for the redemption amounts
required to be paid when an in rem foreclosure is set aside; requiring certain
procedures for an in rem foreclosure; requiring Baltimore City to take certain actions
to compensate the interested parties in property that has value and is acquired
through an in rem foreclosure; specifying the title acquired in an in rem foreclosure;
specifying the circumstances under which an in rem foreclosure judgment may be
reopened; and generally relating to in rem foreclosure of vacant or nuisance property
in Baltimore City.
BY repealing and reenacting, with amendments,
Article – Tax – Property
Section 14–874 through 14–876
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
BY adding to
Article – Tax – Property
Section 14–877 and 14–878 14–894 to be under the new part “Part VIII. Baltimore
City Judicial In Rem Foreclosure for Vacant or Nuisance Property”
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAN D,
That the Laws of Maryland read as follows:
Article – Tax – Property
14–874.
(a) (1) [Real] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS
SUBSECTION, REAL property may be subject to foreclosure and sale under this part only
if: Ch. 408 2023 LAWS OF MARYLAND
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[(1)] (I) the property consists of a vacant lot or improved property cited
as vacant and unsafe or unfit for habitation or other authorized use on a housing or building
violation notice; and
[(2)] (II) the total amount of liens for unpaid taxes on the property exceeds
the lesser of the total value of the property as last determined by the Department or as
determined by an appraisal report prepared not more than 6 months before the filing of a
complaint under this section by a real estate appraiser who is licensed under Title 16 of the
Business Occupations and Professions Article.
(2) REAL PROPERTY LOCATED IN BALTIMORE CITY MAY BE SUBJECT
TO FORECLOSURE AND S ALE UNDER THIS PART IF THE PROPERTY IS A VACANT
PROPERTY OR A NUISAN CE PROPERTY , AS DETERMINED UNDER THE BALTIMORE
CITY BUILDING CODE.
(b) (1) A county or municipal corporation may authorize by law an in rem
foreclosure in accordance with this part.
(2) A law that authorizes an in rem foreclosure shall:
(i) state the date after which real property may be subject to in rem
foreclosure under this part;
(ii) establish criteria for designating real property to be foreclosed
under this part;
(iii) authorize the county or municipal corporation to file a complaint
for an in rem foreclosure under this part; and
(iv) include administrative rules and procedures necessary to carry
out an in rem foreclosure under this part.
(c) (1) Subject to subsection (d) of this section, a county or municipal
corporation may authorize, by law, the sale of real property after an in rem foreclosure and
designate real property to be sold under this part.
(2) A law that authorizes a sale of real property after an in rem foreclosure
shall:
(i) state the date after which the real property may be subject to sale
after an in rem foreclosure under this part;
(ii) establish criteria for designating real property to be sold under
this part; and
WES MOORE, Governor Ch. 408
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(iii) include administrative rules and procedures necessary to carry
out a sale under this part.
(d) [Only] EXCEPT AS PROV IDED IN SUBSECTION (A)(2) OF THIS SECTION ,
ONLY real property that consists of a vacant lot or improved property cited as vacant and
unsafe or unfit for habitation or other authorized use on a housing or building violation
notice may be sold under this part.
14–875.
(a) A county or municipal corporation may file a complaint for an in rem
foreclosure action in accordance with this part.
(b) The county or municipal corporation may not file a complaint for an in rem
foreclosure action unless:
(1) the tax on the real property has been delinquent for at least 6 months;
and
(2) (I) the right to appeal the notice of the property as vacant and
unsafe or unfit has tolled; OR
(II) THE RIGHT TO APPEAL THE NOTICE OF THE PR OPERTY AS
VACANT PROPERTY OR A NUISANCE PROPERTY , AS DETERMINED UNDER THE
BALTIMORE CITY BUILDING CODE, HAS TOLLED.
(c) All taxes shall:
(1) be included in the foreclosure action; and
(2) cease to be a lien against the real property if a judgment is entered
foreclosing the existing interests of all interested parties in the real property.
(d) The county or municipal corporation shall:
(1) file the complaint for an in rem foreclosure in the circuit court of the
county where the real property is located; and
(2) [within 5 days after filing the complaint, send notice and a copy of]
SERVE the complaint to each interested party [by first–class mail and certified mail,
postage prepaid, return receipt requested, bearing a postmark from the United States
Postal Service] IN ACCORDANCE WITH T HE MARYLAND RULES.
(e) The complaint for an in rem foreclosure shall include:
Ch. 408 2023 LAWS OF MARYLAND
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(1) the identity of the county or municipal corporation on behalf of which
the complaint is filed;
(2) the name and address of the county or municipal corporation;
(3) a description of the real property as it appears in the county land
records;
(4) the tax identification number of the real property;
(5) a statement that the taxes are delinquent at the time of the filing;
(6) the amount of taxes that are delinquent as of the date of filing;
(7) the names and last known addresses of all interested parties in the real
property and, if applicable, a statement that the address of a particular interested party in
the real property is unknown;
(8) a statement that the real property is:
(I) a vacant lot or improved property cited as vacant and unsafe or
unfit for habitation or other authorized use on a housing or building violation notice; OR
(II) A VACANT PROPERTY OR A NUISANCE PROPERTY , AS
DETERMINED UNDER THE BALTIMORE CITY BUILDING CODE;
(9) copies of any violation notice cited under paragraph (8) of this
subsection;
(10) a request that the circuit court not schedule a hearing on the complaint
until 30 days after the date that the complaint is filed; and
(11) a request that the circuit court enter a judgment that forecloses the
existing interests of all interested parties in the real property and orders ownership of the
real property to be transferred to the county or municipal corporation.
(f) A complaint for an in rem foreclosure may be amended to include all taxes
that become delinquent after the commencement of the in rem foreclosure action.
(g) (1) Subject to paragraph (2) of this subsection, an interested party has the
right to cure the delinquent taxes and liens on the real property by paying all past due fees,
payments, and penalties at any time before the entry of the foreclosure judgment.
(2) The right to cure the delinquent taxes and liens on the real property
extinguishes once the foreclosure judgment is entered.
WES MOORE, Governor Ch. 408
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14–876.
(a) A circuit court may not set a hearing for an in rem foreclosure until 30 days
after the complaint for an in rem foreclosure is filed.
(b) At the hearing, any interested party shall have the right to be heard and to
contest the delinquency of the taxes and the adequacy of the proceedings.
(c) If the circuit court finds that the county or municipal corporation sent notice
and a copy of the complaint to each interested party in accordance with § 14–875(d) of this
subtitle and that the information set forth in the complaint is accurate, the court shall:
(1) enter a judgment that:
(i) proper notice has been provided to all interested parties; and
(ii) the real property is:
1. a vacant lot or an improved property cited as vacant and
unsafe or unfit for habitation or other authorized use on a housing or building violation
notice; OR
2. A VACANT PROPERTY OR A NUISANCE PROPERTY , AS
DETERMINED UNDER THE BALTIMORE CITY BUILDING CODE; and
(2) order that ownership of the real property be transferred to the county
or municipal corporation on behalf of which the complaint was filed.
(d) (1) The county or municipal corporation shall record a judgment under
subsection (c) of this section in the land records of the county.
(2) The title acquired in an in rem foreclosure proceeding shall be an
absolute or fee simple title including the right, title, and interest of each of the defendants
in the proceeding whose property has been foreclosed unless a different title is specified in
the judgment entered.
(3) A judgment in an action under this part is binding and conclusive,
regardless of legal disability, on:
(i) all persons, known and unknown, who were parties to the action
and who had a claim to the property, whether present or future, vested or contingent, legal
or equitable, or several or undivided; and
(ii) all persons who were not parties to the action and had a claim to
the property that was not recorded at the time that the action was commenced.
Ch. 408 2023 LAWS OF MARYLAND
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14–877.
(A) IN THIS SECTION, “SURPLUS PROCEEDS ” MEANS THE PROCEEDS F ROM
THE SALE OF PROPERTY SOLD WITHIN 1 YEAR FROM WHEN THE P ROPERTY WAS
OBTAINED BY A COUNTY OR MUNICIPAL CORPORA TION THROUGH AN IN R EM
FORECLOSURE , THAT EXCEED THE SUM OF:
(1) THE DELINQUENT TAXES , FEES, AND PENALTIES ON THE
PROPERTY; AND
(2) THE VALUE OF ALL IMP ROVEMENTS MADE ON TH E PROPERTY AND
ALL COSTS INCURRED W ITH RESPECT TO DEVEL OPMENT OF THE PROPER TY PRIOR
TO THE SALE BY THE C OUNTY OR MUNICIPAL C ORPORATION .
(B) (1) SURPLUS PROCEEDS SHAL L BE HELD BY A COUNTY OR
MUNICIPALITY FOR A P ERIOD OF 12 MONTHS.
(2) AFTER 12 MONTHS, SURPLUS PROCEEDS SHA LL BE DISTRIBUTED
TO ANY PERSON WITH A N OUTSTANDING CLAIM ON THE PROPERTY , IN ORDER OF
PRIORITY.
(C) EACH COUNTY AND MUNIC IPALITY SHALL MAINTA IN A LIST OF
PROPERTIES OBTAINED THROUGH IN REM FOREC LOSURE THAT HAVE BEE N SOLD
WITHIN 1 YEAR FROM WHEN THE P ROPERTY WAS OBTAINED AND FOR WHICH THE
SALE HAS RESULTED IN SURPLUS PROCEEDS .
14–878.
(A) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTIO N, A
COURT MAY NOT REOPEN A JUDGMENT RENDERED IN AN IN REM FORECLO SURE
PROCEEDING IN ACCORD ANCE WITH THIS PART EXCEPT ON THE GROUND OF LACK
OF JURISDICTION OR F RAUD IN THE CONDUCT OF THE PROCEEDINGS T O
FORECLOSE.
(2) A COURT MAY NOT REOPEN ANY JUDGMENT UNDER PARAGRAPH
(1) OF THIS SUBSECTION O N THE GROUND OF CONS TRUCTIVE FRAUD IN TH E
CONDUCT OF THE PROCE EDINGS TO FORECLOSE UNLESS AN APPLICATIO N TO
REOPEN A JUDGMENT RE NDERED IS FILED WITH IN 1 YEAR FROM THE DATE O F THE
JUDGMENT.
(B) A PLAINTIFF IN AN ACT ION TO REOPEN AN IN REM FORECLOSURE
JUDGMENT SHALL :
WES MOORE, Governor Ch. 408
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(1) EXCEPT AS PROVIDED I N SUBSECTION (A)(2) OF THIS SECTION ,
FILE THE ACTION WITH IN 3 YEARS OF THE ISSUANC E OF THE IN REM FORE CLOSURE
JUDGMENT; AND
(2) WITHIN 30 DAYS OF FILING THE A CTION, SUBMIT EVIDENCE TO
THE COURT THAT THE P LAINTIFF HAS OBTAINE D A BOND EQUAL TO TH E
REASONABLE VALUE OF THE PROPERTY .
(C) IF AN IN REM FORECLOS URE JUDGMENT OF THE COURT IS SET ASIDE ,
THE AMOUNT REQUIRED TO REDEEM IS:
(1) THE AMOUNT REQUIRED BY THIS SUBTITLE; AND
(2) THE REASONABLE VALUE , AT THE DATE THE JUDG MENT IS SET
ASIDE, OF ALL IMPROVEMENTS MADE ON THE PROPERTY AND ALL COSTS INCURR ED
WITH RESPECT TO DEVE LOPMENT OF THE PROPE RTY BY THE PURCHASER AND THE
PURCHASER ’S SUCCESSORS IN INTE REST.
14–892. RESERVED.
14–893. RESERVED.
PART VIII. BALTIMORE CITY JUDICIAL IN REM FORECLOSURE FOR VACANT OR
NUISANCE PROPERTY.
14–894.
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “INTERESTED PARTY ” MEANS ANY PERSON HAV ING AN INTEREST
IN A VACANT OR NUISA NCE PROPERTY :
(I) WHO LAST APPEARS AS OWNER OF THE PROPERT Y ON THE
COLLECTOR’S TAX ROLL;
(II) WHO IS A MORTGAGEE O F THE PROPERTY OR AS SIGNEE OF
A MORTGAGE OF RECORD ;
(III) WHO IS A HOLDER OF A BENEFICIAL INTE REST IN A DEED OF
TRUST RECORDED AGAIN ST THE PROPERTY ;
(IV) WHO IS A TAXING AGEN CY THAT HAS THE AUTH ORITY TO
COLLECT TAX ON THE P ROPERTY; OR Ch. 408 2023 LAWS OF MARYLAND
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(V) WHOSE IDENTITY AND A DDRESS ARE:
1. REASONABLY ASCERTAIN ABLE FROM THE COUNTY
LAND RECORDS ; OR
2. REVEALED BY A FULL T ITLE SEARCH CONSISTI NG OF
AT LEAST 50 YEARS.
(3) “TAX” HAS THE MEANING STAT ED IN § 14–801 OF THIS SUBTITLE .
(4) “VACANT OR NUISANCE PR OPERTY” MEANS A VACANT LOT O R
IMPROVED PROPERTY DE TERMINED TO BE A VAC ANT PROPERTY OR A NUI SANCE
PROPERTY UNDER THE BALTIMORE CITY BUILDING CODE.
(5) “VALUE” MEANS THAT THE TOTAL AMOUNT OF LIENS FOR UNPAID
TAXES ON A PROPERTY DOES NOT EXCEED THE LESSER OF THE TOTAL VALUE OF THE
PROPERTY AS LAST DET ERMINED BY THE DEPARTMENT OR AS DETE RMINED BY AN
APPRAISAL REPORT PRE PARED NOT MORE THAN 6 MONTHS BEFORE THE FI LING OF
A COMPLAINT UNDER TH IS SECTION BY A REAL ESTATE APPRAISER WHO IS
LICENSED UNDER TITLE 16 OF THE BUSINESS OCCUPATIONS AND PROFESSIONS
ARTICLE.
(B) (1) IN ACCORDANCE WITH TH IS SECTION, BALTIMORE CITY MAY
AUTHORIZE, BY LAW, AN IN REM FORECLOSUR E OF VACANT OR NUISANCE PRO PERTY
ON WHICH THE TAXES A RE IN ARREARS.
(2) A LAW THAT AUTHORIZES AN IN REM FORECLOSUR E OF VACANT
OR NUISANCE PROPERTY SHALL:
(I) STATE THE DATE AFTER WHICH REAL PROPERTY MAY BE
SUBJECT TO IN REM FO RECLOSURE;
(II) ESTABLISH CRITERIA FOR DESIGNA TING REAL PROPERTY
TO BE FORECLOSED UND ER THIS SECTION;
(III) AUTHORIZE BALTIMORE CITY TO FILE A COMPLA INT FOR
AN IN REM FORECLOSUR E; AND
(IV) INCLUDE ADMINISTRATI VE RULES AND PROCEDU RES
NECESSARY TO CARRY O UT AN IN REM FORECLO SURE OF VACANT OR NUI SANCE
PROPERTY.
WES MOORE, Governor Ch. 408
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(C) BALTIMORE CITY MAY NOT FILE A C OMPLAINT FOR AN IN R EM
FORECLOSURE ACTION U NDER THIS SECTION UN LESS:
(1) THE TAXES ON THE REA L PROPERTY HAVE BEEN DELINQUENT
FOR AT LEAST 6 MONTHS; AND
(2) THE RIGHT TO APPEAL THE NOTICE OF THE PR OPERTY AS VACANT
OR NUISANCE PROPERTY HAS TOLLED.
(D) TO INITIATE AN IN REM FORECLOSURE ACTION , BALTIMORE CITY
SHALL:
(1) FILE A COMPLAINT FOR AN IN REM FORECLOSUR E IN THE CIRCUIT
COURT FOR BALTIMORE CITY; AND
(2) SERVE THE COMPLAINT TO EACH IN TERESTED PARTY IN
ACCORDANCE WITH THE MARYLAND RULES.
(E) ALL TAXES SHALL:
(1) BE INCLUDED IN THE F ORECLOSURE ACTION ; AND
(2) CEASE TO BE A LIEN A GAINST THE PROPERTY IF A JUDGMENT IS
ENTERED FORECLOSING THE EXISTING INTERES TS OF ALL INTERESTED PARTI ES IN
THE PROPERTY .
(F) THE COMPLAINT FOR AN IN REM FORECLOSURE S HALL INCLUDE :
(1) THE NAME AND ADDRESS OF THE APPROPRIATE A GENCY OF
BALTIMORE CITY;
(2) A DESCRIPTION OF THE PROPERTY AS IT APPEA RS IN THE LAND
RECORDS;
(3) THE TAX IDENTIFICATION NUMBER OF THE PROPER TY;
(4) A STATEMENT THAT THE TAXES ARE DELINQUENT AT THE TIME OF
THE FILING;
(5) THE AMOUNT OF TAXES THAT ARE DELINQUENT AS OF THE DATE
OF THE FILING;
Ch. 408 2023 LAWS OF MARYLAND
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(6) THE NAMES AND LAST K NOWN ADDRESSES OF AL L INTERESTED
PARTIES IN THE PROPE RTY AND, IF APPLICABLE, A STATEMENT THAT THE ADDRESS
OF A PARTICULAR INTE RESTED PARTY IN THE PROPERTY IS UNKNOWN ;
(7) A STATEMENT THAT THE REAL PROPERTY IS A V ACANT OR
NUISANCE PROPERTY;
(8) COPIES OF ANY VIOLAT ION NOTICE CITED UND ER ITEM (7) OF
THIS SUBSECTION ; AND
(9) A REQUEST THAT THE C IRCUIT COURT ENTER A JUDGMENT THAT
FORECLOSES THE EXIST ING INTERESTS OF ALL INTERESTED PARTIES I N THE REAL
PROPERTY.
(G) A COMPLAINT F OR AN IN REM FORECLO SURE MAY BE AMENDED TO
INCLUDE ALL TAXES TH AT BECOME DELINQUENT AFTER THE COMMENCEME NT OF
THE IN REM FORECLOSU RE ACTION.
(H) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AN
INTERESTED PARTY HAS THE RIGHT TO CURE TH E DELINQUENT TAX ES ON THE
PROPERTY BY PAYING A LL PAST DUE TAXES AT ANY TIME BEFORE THE ENTRY OF
THE FORECLOSURE JUDG MENT.
(2) THE RIGHT TO CURE THE DELINQUENT TAXES ON THE PROPERTY
IS EXTINGUISHED ONCE THE FORECLOSURE JUDG MENT IS ENTERED .
(I) THE CIRCUIT COURT MAY NOT SET A HEARING FOR AN IN REM
FORECLOSURE UNTIL 30 DAYS AFTER THE COMPL AINT FOR AN IN REM
FORECLOSURE IS FILED .
(J) AT THE HEARING , ANY INTERESTED PARTY SHALL HAVE THE RIGHT TO
BE HEARD AND TO CONT EST THE DELINQUENCY OF THE TAXES AND THE ADEQUACY
OF THE PROCEEDINGS .
(K) IF THE CIRCUIT COURT FINDS THAT THE COMPL AINT WAS SERVED ON
EACH INTERESTED PART Y AND THAT THE INFOR MATION SET FORTH IN THE
COMPLAINT IS ACCURAT E, THE COURT SHALL :
(1) ENTER A JUDGMENT THA T:
(I) PROPER NOTICE HAS BE EN PROVIDED TO ALL INTERESTED
PARTIES;
WES MOORE, Governor Ch. 408
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(II) THE REAL PROPERTY IS A VACANT OR NUISANCE PROPERTY;
AND
(III) FORECLOSES THE EXIST ING INTERESTS OF ALL
INTERESTED PARTIES I N THE REAL PROPERTY ; AND
(2) ORDER THAT OWNERSHIP OF THE REAL PROPERTY BE
TRANSFERRED TO BALTIMORE CITY.
(L) BALTIMORE CITY SHALL RECORD A J UDGMENT UNDER SUBSEC TION (K)
OF THIS SECTION IN T HE LAND RECORDS .
(M) (1) IF PROPERTY SUBJECT T O FORECLOSURE UNDER THIS SECTION
HAS VALUE, BALTIMORE CITY SHALL:
(I) SELL THE PROPERTY AT PUBLIC AUCTION IN ACCORDANCE
WITH SUBSECTION (N) OF THIS SECTION; OR
(II) COMPENSATE THE INTER ESTED PARTIES IN THE PROPERTY
IN ACCORDANCE WITH S UBSECTION (O) OF THIS SECTION.
(2) IF PROPERTY SUBJECT T O FORECLOSURE UNDER THIS SECTION
DOES NOT HAVE VALUE , BALTIMORE CITY MAY RETAIN TITLE TO THE PROPERTY
WITHOUT PROVIDING CO MPENSATION TO THE IN TERESTED PARTIES .
(N) (1) A SALE OF PROPERTY SUB JECT TO FORECLOSURE UNDER THIS
SECTION SHALL BE CON DUCTED AT PUBLIC AUC TION IN ACCORDANCE W ITH THE
MARYLAND RULES.
(2) PROPERTY MAY NOT BE S OLD UNTIL AT LEAST 45 DAYS AFTER THE
ENTRY OF JUDGMENT OF FORECLOSURE .
(3) THE MINIMUM BID FOR T HE SALE OF THE PROPE RTY SHALL BE
THE TOTAL AMOUNT OF LIENS FOR UNPAID TAX ES ON THE PROPERTY .
(4) THE PROPERTY SHALL BE SOLD TO THE PERSON MAKING THE
HIGHEST BID.
(5) THE PERSON MAKING THE HIGHEST BID SHALL PA Y THE FULL BID
AMOUNT TO BALTIMORE CITY.
(6) IF THE MINIMUM BID IS NOT MADE OR EXCEEDED , BALTIMORE
CITY MAY BID THE MINI MUM BID PRICE AND PU RCHASE THE PROPERTY .
Ch. 408 2023 LAWS OF MARYLAND
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(7) BALTIMORE CITY SHALL DEPOSIT IN AN ESCROW ACCOUNT AN Y
AMOUNT BY WHICH THE HIGHEST BID EXCEEDS :
(I) THE AMOUNT OF TAXES DUE ON THE PROPERTY ; AND
(II) THE VALUE OF ALL IMP ROVEMENTS MADE ON TH E
PROPERTY AND ALL COS TS INCURRED WITH RES PECT TO DEVELOPM ENT OF THE
PROPERTY BEFORE THE SALE OF THE PROPERTY BY BALTIMORE CITY.
(8) THE CIRCUIT COURT SHA LL DISTRIBUTE THE FU NDS DEPOSITED
INTO THE ESCROW ACCO UNT TO THE INTERESTE D PARTIES IN THE ORD ER OF
PRIORITY OF THE INTE RESTS OF THE INTERES TED PARTIES.
(9) AFTER A SALE , BALTIMORE CITY SHALL FILE A NOT ICE
INFORMING THE CIRCUI T COURT OF THE SALE AND STATING THE DATE OF THE SALE,
THE SALE PRICE, AND THE IDENTITY OF THE PURCHASER .
(10) A SALE OF A PROPERTY U NDER THIS SECTION IS FINAL AND
BINDING ON THE MAK ER OF THE HIGHEST BI D.
(O) (1) TO COMPENSATE THE INT ERESTED PARTIES IN A PROPERTY THAT
HAS VALUE WITHOUT SE LLING THE PROPERTY , BALTIMORE CITY SHALL:
(I) OBTAIN AN APPRAISAL OF THE PROPERTY BY A REAL
ESTATE APPRAISER WHO IS LICENSED UNDER TITLE 16 OF THE BUSINESS
OCCUPATIONS AND PROFESSIONS ARTICLE; AND
(II) DEPOSIT IN AN ESCROW ACCOUNT THE AMOUNT B Y WHICH
THE APPRAISAL EXCEED S THE AMOUNT OF TAXE S DUE ON THE PROPERT Y.
(2) THE CIRCUIT COURT SHA LL DISTRIBUTE THE FU NDS DEPOSITED
INTO THE ESCROW A CCOUNT TO THE INTERE STED PARTIES IN THE ORDER OF
PRIORITY OF THE INTE RESTS OF THE INTERES TED PARTIES.
(P) (1) THE TITLE ACQUIRED IN AN IN REM FORECLOSUR E PROCEEDING
SHALL BE AN ABSOLUTE OR FEE SIMPLE TITLE INCLUDING THE RIGHT , TITLE, AND
INTEREST OF EACH OF THE DEFENDANTS IN THE PROCEEDING WHOSE PROPERTY
HAS BEEN FORECLOSED UNLESS A DIFFERENT T ITLE IS SPECIFIED IN THE
JUDGMENT ENTERED .
(2) A JUDGMENT IN AN ACTIO N UNDER THIS SECTION IS BINDING AND
CONCLUSIVE, REGARDLESS OF LEGAL DISABILITY, ON:
WES MOORE, Governor Ch. 408
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(I) ALL PERSONS, KNOWN AND UNKNOWN , WHO WERE PARTIES
TO THE ACTION AND WH O HAD A CLAIM TO THE PROPERTY, WHETHER PRESENT OR
FUTURE, VESTED OR CONTINGENT , LEGAL OR EQUITABLE , OR SEVERAL OR
UNDIVIDED; AND
(II) ALL PERSONS WHO WERE NOT PARTIES TO THE A CTION AND
HAD A CLAIM TO THE P ROPERTY THAT WAS NOT RECORDED AT THE TIME THAT THE
ACTION WAS COMMENCED .
(Q) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A
COURT MAY NOT REOPEN A JUDGMENT RENDERED IN AN IN REM FORECLO SURE
PROCEEDING IN ACCORD ANCE WITH THIS SECTION EX CEPT ON THE GROUND O F
LACK OF JURISDICTION OR FRAUD IN THE COND UCT OF THE PROCEEDIN GS TO
FORECLOSE.
(2) A COURT MAY NOT REOPEN ANY JUDGMENT UNDER P ARAGRAPH
(1) OF THIS SUBSECTION O N THE GROUND OF CONS TRUCTIVE FRAUD IN TH E
CONDUCT OF THE PROCEEDINGS TO F ORECLOSE UNLESS AN A PPLICATION TO
REOPEN A JUDGMENT RE NDERED IS FILED WITH IN 1 YEAR AFTER THE DATE OF THE
JUDGMENT.
(R) A PLAINTIFF IN AN ACTI ON TO REOPEN AN IN R EM FORECLOSURE
JUDGMENT UNDER THIS SECTION SHALL :
(1) EXCEPT AS PROV IDED IN SUBSECTION (Q)(2) OF THIS SECTION ,
FILE THE ACTION WITH IN 3 YEARS AFTER THE ISSU ANCE OF THE IN REM
FORECLOSURE JUDGMENT ;
(2) PAY ALL TAXES DUE ON THE PROPERTY BEFORE FILING THE
ACTION; AND
(3) WITHIN 30 DAYS AFTER FILING TH E ACTION, SUBMIT EVIDENCE
TO THE COURT THAT TH E PLAINTIFF HAS OBTA INED A BOND EQUAL TO THE
REASONABLE VALUE OF THE PROPERTY .
(S) IF AN IN REM FORECLOS URE JUDGMENT OF THE COURT IS SET ASIDE ,
THE AMOUNT REQUIRED TO REDEEM IS EQUAL T O THE SUM OF:
(1) THE AMOUNT REQUIRED BY THIS SUBTITLE; AND
(2) THE REASONABLE VALUE , AT THE DATE THE JUDG MENT IS SET
ASIDE, OF ALL IMPROVEMENTS MADE ON THE PROPERTY AND ALL COSTS INCURR ED
WITH RESPECT TO DEVE LOPMENT OF THE PROPE RTY BY THE PURCHASER AND THE
PURCHASER ’S SUCCESSORS IN INTE REST. Ch. 408 2023 LAWS OF MARYLAND
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SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2023.
Approved by the Governor, May 3, 2023.