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Maryland

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Maryland — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-02.

Maryland is a tax-lien-certificate state. Counties (and Baltimore City) hold annual tax sales; the winning bidder receives a certificate of sale, not title. The owner retains a robust right of redemption “at any time until the right of redemption has been finally foreclosed” (Tax-Property [TP] § 14-827). Title only passes after a judicial foreclosure of the right of redemption in circuit court (TP § 14-833 et seq.). Maryland’s surplus regime is in active reform after tyler-v-hennepin-county; see Module 3.

0. Identity & Classification

  • Recording unit: County, plus Baltimore City (an independent city that functions as a county for tax-sale purposes). 23 counties + Baltimore City = 24 collecting jurisdictions.
  • Tax sale type: Tax lien certificate (certificate of sale) — TP § 14-820.
  • Tax foreclosure process: Judicial — foreclosure of the right of redemption is a complaint filed in the circuit court for the county (TP § 14-833).
  • Mortgage foreclosure process: Quasi-judicial / power-of-sale under court supervision — an “order to docket” or complaint is filed in circuit court; the trustee conducts the sale, which the court must ratify (RP § 7-105.1; Md. Rules Title 14, Ch. 200).
  • Selling authority: County collector/treasurer (Director of Finance); Baltimore City Director of Finance. Mortgage sales conducted by the trustee named in the deed of trust (or assigned substitute trustee).
  • Statutory home: Md. Code, Tax-Property Article, Title 14, Subtitle 8, Part III (§§ 14-808 to 14-854) — tax sales. Mortgage foreclosure: Real Property Article, Title 7. — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-833
  • Tyler v. Hennepin compliance: reformed_post_Tyler / transitional. TP § 14-818 already directs the collector to hold any balance over the tax debt for the former owner and to notify the owner within 90 days, but enforcement (especially in Baltimore City) has been challenged. A federal court allowed a Takings claim to proceed in Edmondson Community Org. v. Mayor & City Council of Baltimore (D. Md. 2025). The General Assembly enacted further protections in 2025 (HB 59 / Ch. 231). See Module 3.

1. Tax Sale Mechanics

  • What is sold: A certificate of sale (tax lien certificate). The bidder does not receive title at the sale (TP § 14-820). — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-817
  • Bidding method: Highest good-faith bid at public auction, in fee or leasehold (TP § 14-817(a)). The bid must at least cover the minimum bid (taxes certified under TP § 14-810, plus interest, penalties, and expenses of sale).
  • High-bid premium: For bids that substantially exceed value, TP § 14-817(b) imposes a high-bid premium = 20% of the amount by which the highest bid exceeds 40% of the property’s full cash value. The premium is paid to the collector at the sale and is refunded without interest when the property is redeemed or when the foreclosure deed is delivered to the purchaser; it is retained by the collector if the certificate is never acted upon (foreclosure never filed). This mechanism discourages speculative over-bidding. — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-817
  • Interest / penalty (redemption rate): Set by each county by ordinance; Maryland statute lets jurisdictions set their own redemption interest rate. Rates reported across counties range roughly 6%–20% per annum (e.g., Anne Arundel 18% / 1.5% monthly; Baltimore County 12%; Prince George’s historically 20%; Washington 6%). 2025 reform (HB 59) limits the rate to 10% for certain owner-occupied/heir properties. County-specific current rates must be confirmed in each county’s published terms of sale. — https://dat.maryland.gov/pages/tax-sale-information.aspx
  • Minimum bid composition: Delinquent taxes certified to the collector (TP § 14-810) + interest + penalties + expenses of sale (TP § 14-817(a)).
  • Sale frequency / typical month: Annual. Most jurisdictions sell in May–June (Baltimore City typically May; many counties in spring/early summer).
  • Venue: Predominantly online auctions today (e.g., RealAuction / bidbaltimore-type platforms), some still in-person; both permitted.
  • Platform vendors: Varies by county (RealAuction and similar). Confirm per county. (needs_verification — vendor list not from a single primary source.)
  • Registration & deposit: County-specific; bidders register and post deposits per each jurisdiction’s terms of sale.
  • Subsequent taxes (“subs”): The certificate holder may pay accruing taxes after the sale; those amounts (with interest/penalties) are added to the redemption amount and must be paid before the deed is delivered (TP § 14-831). — https://law.justia.com/codes/maryland/tax-property/title-14/subtitle-8/part-iii/section-14-831/

2. Right of Redemption → see right-of-redemption

  • Pre-sale right: The owner can stop the sale by paying all taxes, interest, and penalties before the sale (and, post-2025, owner-occupied / heir properties below threshold are withheld from sale entirely — HB 59 / Ch. 231).
  • Post-sale period: Redemption is available “at any time until the right of redemption has been finally foreclosed” by circuit-court judgment (TP § 14-827). There is no fixed clock for the owner; instead, the certificate holder must wait 6 months (9 months for owner-occupied residential property) before suing to foreclose, and the certificate is void if foreclosure is not filed within 2 years of the certificate (TP § 14-833(a), (c)). — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-833
  • Who may redeem: “The owner or other person that has an estate or interest in the property” (TP § 14-827) — owners, heirs, mortgagees, lienholders. — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-827
  • Redemption amount formula (before suit filed): Total lien (sale) amount with interest at the county redemption rate + any taxes/interest/penalties paid by the holder + any taxes/interest/penalties accruing after the sale + allowed expenses: recording costs, title-search fee ≤ $250, postage/certified-mail costs, and reasonable attorney's fees ≤$500 (these expense reimbursements are available only after 4 months from sale) (TP § 14-843). — https://codes.findlaw.com/md/tax-property/md-code-tax-property-sect-14-843/
  • Premium to certificate holder: The certificate holder earns the county redemption interest rate on the sale amount; there is no separate fixed “premium” beyond statutory interest and the capped expenses above.
  • Procedure: Redemption is made through the collector, who computes the payoff and, after payment, releases/refunds the certificate holder and the high-bid premium.
  • Extinguishment: Redemption ends only upon entry of a final judgment foreclosing the right of redemption; once that judgment is enrolled, payment no longer redeems (TP § 14-844 vests “an absolute and indefeasible title in fee simple” in the holder). After-acquired-judgment challenges are limited (see Module 6).
  • Special tolling: (needs_verification — minors/incompetents/SCRA/bankruptcy tolling treatment under Title 14 not confirmed against a primary source.)

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

  • Belongs to: The former owner (“person entitled to the balance”). TP § 14-818 directs the collector to hold any balance over the taxes, interest, penalties, and costs of sale for that person. — https://law.justia.com/codes/maryland/tax-property/title-14/subtitle-8/part-iii/section-14-818/
  • Claim waterfall: (1) taxes, interest, penalties, costs of sale → collector; (2) balance → person entitled (prior owner of record), subject to court determination if disputed. The legislative intent was that “person entitled to the balance” means the property owner, not junior mortgagees/creditors.
  • Filing venue: A county-established claim process (uniform within the county) that may not require a court order unless there is a dispute (TP § 14-818(a)(5)). Disputes go to a court of competent jurisdiction.
  • Claim deadline / escheat: TP § 14-818 contains no express claim deadline and no express escheat trigger. In practice, unclaimed county funds (uncashed checks) are reported to the Maryland Comptroller’s Unclaimed Property unit after the general 3-year dormancy period and remain reclaimable from the State indefinitely. (The specific escheat path for tax-sale balances is by general unclaimed-property practice, not a Title-14-specific provision — see needs_verification.) — https://www.marylandcomptroller.gov/unclaimed-property/faqs.html
  • Notice to former owner: Required. Within 90 days after delivering the deed to the purchaser, the collector must notify the prior owner of record of the balance amount and the claim process (TP § 14-818(a)(6)). — https://law.justia.com/codes/maryland/tax-property/title-14/subtitle-8/part-iii/section-14-818/
  • Third-party recovery (recovery-agent rules):
    • fee_cap_pct: No statutory percentage cap on fees for recovering tax-sale surplus specifically. Maryland’s dedicated surplus-purchaser statute, Real Property § 7-314 (Foreclosure Surplus Acquisition), by its terms applies to surplus from a mortgage/deed-of-trust foreclosure proceeding, not tax sales. (Whether RP § 7-314 reaches tax-sale balances is unsettled — needs_verification.)
    • licensing_required: No special license is identified for tax-sale surplus finders; mortgage-foreclosure surplus purchasers are regulated by the Office of Financial Regulation under the Protection of Homeowners in Foreclosure Act (RP Title 7, Subtitle 3). — https://www.labor.maryland.gov/finance/industry/frforeclosuresurplus.shtml
    • assignment_of_claim_allowed: For mortgage-foreclosure surplus, RP § 7-314 permits assignment/acquisition only via a compliant written contract with a Notice of Rescission.
    • cooling_off_period: 10 days for mortgage-foreclosure surplus acquisitions — the homeowner may rescind without penalty within 10 days after the auditor states the account of the foreclosure sale (repaying any consideration received plus 8% interest) (RP §§ 7-314, 7-315). — https://codes.findlaw.com/md/real-property/md-code-real-prop-sect-7-314/
    • contract_disclosure_rules: RP § 7-314 requires a written contract with specified terms and an attached Notice of Rescission delivered at execution.
    • prohibited_practices: Contract terms that waive Title 7 rights, choose non-Maryland law/venue, or impose costs/fees greater than circuit-court filing fees are void (RP § 7-314). — https://law.justia.com/codes/maryland/real-property/title-7/subtitle-3/part-iv/section-7-314/
    • Summary of the two regimes: Maryland’s consumer-protection rules (RP § 7-314/§ 7-315) apply most clearly to mortgage foreclosure surplus. For tax-sale balances, the owner claims directly through the county’s free process (TP § 14-818); there is no clear statutory fee cap, and the legislative framing directs the balance to the owner.

▸ For Investors / Operators — A Maryland tax sale conveys a certificate of sale, not title; the bidder must judicially foreclose the right of redemption in circuit court (TP § 14-833) to take a deed. Before committing capital, weigh the open-ended redemption risk (§2/2b — the owner may redeem at any time until the right is finally foreclosed, and the certificate is void if foreclosure is not filed within 2 years), the path to marketable title (§5b — the TP § 14-844 foreclosure judgment vests “absolute and indefeasible” title but title insurers commonly require quiet title or seasoning, and Maryland has no Marketable Title Act), and which liens survive (§7b — the HOA super-priority does not run ahead of the tax lien, but the IRS § 7425 120-day redemption and unjoined parties of record persist).

▸ For Former Owners — When a Maryland tax sale produces more than the taxes, interest, penalties, and costs, the balance belongs to the former owner of record; TP § 14-818 directs the collector to hold it and to notify the prior owner within 90 days after delivering the deed to the purchaser. The claim is filed through the county’s claim process (no court order required unless the claim is disputed), and unclaimed county funds are reported to the Maryland Comptroller’s Unclaimed Property unit after the standard dormancy period, where they remain reclaimable.

4. Mortgage Foreclosure

  • Process: Power-of-sale under court supervision (treated here as quasi-judicial). The secured party files an Order to Docket / Complaint to Foreclose in the circuit court; a trustee conducts the public sale; the court must ratify the sale (RP § 7-105.1; Md. Rules Title 14, Ch. 200). — https://law.justia.com/codes/maryland/real-property/title-7/subtitle-1/section-7-105-1/
  • Timeline (residential):
    • Notice of Intent to Foreclose (NOI): at least 45 days before filing the Order to Docket.
    • Order to Docket: may be filed after the NOI period; postfile mediation is available for owner-occupied residential property.
    • Sale: by trustee after notice/advertisement.
    • Ratification / confirmation: the court ratifies after the exceptions period.
    • (Exact day-counts for advertisement and the post-sale exception window — needs_verification against Md. Rules 14-210/14-305.)
  • Reinstatement right: Yes — the borrower may cure the default (pay arrears, fees, costs) up to 1 business day before the foreclosure sale (RP § 7-105.1 and related rules). — https://www.peoples-law.org/foreclosure-steps-and-timeline
  • Redemption after sale: The borrower may redeem (pay the full debt) until the court ratifies the sale; there is no separate statutory post-ratification redemption period in Maryland.
  • Deficiency judgment: Allowed. A motion for deficiency may be filed within 3 years after final ratification of the auditor’s report. (Fair-value-offset and one-action-rule specifics — needs_verification.)
  • Surplus distribution: Surplus from a mortgage foreclosure is distributed by the court auditor; the homeowner’s surplus is what RP § 7-314 surplus-purchaser rules protect.
  • Sale officer: Trustee (named/substitute trustee under the deed of trust).

5. Sale Procedure Playbooks

  • Treasurer / collector tax sale — ordered steps → see treasurer-sale:
    1. Taxes become delinquent; collector certifies delinquency (TP § 14-810).
    2. Collector mails the owner notice of intended sale at least 30 days before the sale (and, post-2025, withholds eligible owner-occupied/heir properties).
    3. Advertisement for 4 successive weeks in a county newspaper.
    4. Public auction to the highest good-faith bidder; high-bid premium under TP § 14-817(b) collected where applicable.
    5. Purchaser pays the bid components due (taxes/interest/penalties/expenses), then receives a certificate of sale (TP §§ 14-818, 14-820).
    6. Redemption open until foreclosed; certificate holder may sue to foreclose after 6 months (9 months owner-occupied), within 2 years (TP § 14-833).
    7. On final judgment, deed issues vesting fee-simple title (TP § 14-844); collector pays the balance to the former owner (TP § 14-818). — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-817
  • Sheriff sale — ordered steps → see sheriff-sale: Maryland mortgage sales are conducted by a trustee, not the sheriff; there is generally no sheriff sale for tax or mortgage foreclosure. (Sheriff’s sales arise for execution on money judgments, outside this scope.)
  • Notice requirements: Mailed notice to owner ≥ 30 days before tax sale + newspaper publication 4 consecutive weeks; before filing the foreclosure complaint the certificate holder must send two notices (TP § 14-833(a-1): at least 2 months apart and ≥ 30 days before filing) to the owner and current mortgagee/servicer. — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-833
  • Upset bid / confirmation: Tax sales need a circuit-court foreclosure judgment (no upset-bid procedure as in NC). Mortgage sales require court ratification.
  • Payment terms: Tax-sale purchaser generally pays the day after the sale (day of sale in Washington County) the taxes/interest/penalties/expenses + high-bid premium; balance of the bid is paid only when the deed is taken after foreclosure (TP § 14-818). — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-818
  • Deed issued: Tax deed after foreclosure judgment vests fee-simple, indefeasible title (TP § 14-844); typically a special/limited form, not a general warranty deed.

6. Due Process & Notice → see due-process-notice

7. Title & Marketability

  • Deed warranty level: Tax deed conveys fee-simple, absolute and indefeasible title by statute on final judgment (TP § 14-844), but is functionally a special/limited conveyance from the collector — not a warranty deed.
  • Marketable immediately? Practically no — title insurers and buyers commonly require a quiet-title action (or a clean foreclosure record with proper notice) before treating tax-deed title as marketable.
  • Quiet title required? Frequently yes in practice for marketability/title insurance, even though TP § 14-844 declares the title indefeasible.
  • SOL to challenge deed: Challenges to a final judgment are tightly limited; motions to reopen an enrolled judgment are generally restricted (e.g., fraud, jurisdictional/notice defects) and subject to short windows (commonly 1 year for ordinary grounds under Md. Rule 2-535, longer only for jurisdictional/fraud defects). (Exact SOL interplay with TP § 14-845 — needs_verification.)
  • Title insurance availability: Generally available after quiet title or with curative steps; underwriters scrutinize notice compliance.
  • Common defects: Defective/insufficient notice to owners, heirs, mortgagees, or associations; failure to join interested parties; void sales of paid-up parcels (cf. Heartwood); unresolved surplus/Takings exposure post-Tyler.

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
thornton-mellon-v-dennis-2022 (Thornton Mellon LLC v. Adrianne Dennis Exempt Trust, 478 Md. 280)2022redemptionAward of a certificate holder’s post-complaint attorney’s fees under TP § 14-843(a)(4) is discretionary; a court may deny fees where the holder impeded the owner’s redemption.https://law.justia.com/cases/maryland/court-of-appeals/2022/28-21.html
heartwood-88-v-montgomery-county-2004 (Heartwood 88, Inc. v. Montgomery County, 156 Md. App. 333, 846 A.2d 1096)2004sale_procedureWhen a county voids a tax sale of property whose taxes were actually paid (sale void), the purchaser is not entitled to the high redemption interest rate — only the lower refund rate (here 8%).https://www.courtlistener.com/opinion/2181632/heartwood-88-inc-v-montgomery-county/
scott-v-seek-lane-venture-1992 (Scott v. Seek Lane Venture, Inc., 91 Md. App. 668, 605 A.2d 942)1992due_processForeclosure-of-redemption judgment set aside where the purchaser gave inadequate notice to interested parties (served only a defunct corporation; no notice to the HOA/lot owners). Notice must be reasonably calculated to reach interested parties.https://case-law.vlex.com/vid/scott-v-seek-lane-894362897
edmondson-community-org-v-baltimore (Edmondson Community Org., Inc. v. Mayor & City Council of Baltimore, No. 1:24-cv-01921 (D. Md.))2025surplusApplying tyler-v-hennepin-county, the court denied dismissal: plaintiffs plausibly alleged Baltimore’s tax-sale system effected an unconstitutional taking by failing to deliver surplus equity; private tax-sale investors could be state actors under § 1983.https://law.justia.com/cases/federal/district-courts/maryland/mddce/1:2024cv01921/562776/53/
tyler-v-hennepin-county (Tyler v. Hennepin County, 598 U.S. 631)2023surplusRetaining a former owner’s surplus equity beyond the tax debt is an unconstitutional taking under the Fifth Amendment. (Landmark anchor; governs MD § 14-818 analysis.)https://www.nelsonmullins.com/insights/alerts/additional_nelson_mullins_alerts/all/reacting-to-tyler-v-hennepin-county-maryland-federal-court-applies-fair-v-continental-resources

9. Edge Cases (state-specific notes)

  • bankruptcy-automatic-stay — A Chapter 7/13 filing stays both the foreclosure of the right of redemption and mortgage foreclosure; the redemption period effectively pauses while the stay is in effect. (MD-specific tolling mechanics — needs_verification.)
  • federal-tax-lien-redemption — A recorded federal tax lien gives the IRS a 120-day post-sale right to redeem (26 U.S.C. § 7425); applies in MD like other states.
  • heirs-property — Strongly protected as of 2025: HB 59 / Ch. 231 lets collectors withhold owner-occupied and heir-occupied property from sale, sets a $1,000 minimum-debt threshold for heir property, creates a statewide heir-property registry, and routes owners to the Homeowner Protection Program. — https://mgaleg.maryland.gov/2025RS/chapters_noln/Ch_231_hb0059E.pdf
  • hoa-super-priority — No HOA super-priority lien regime comparable to Nevada; HOA liens are foreclosed separately. (needs_verification for MD specifics.)
  • void-vs-voidable — Sales of paid-up parcels are void (Heartwood); defective-notice judgments are voidable and may be reopened (Scott v. Seek Lane Venture).
  • tyler-v-hennepin-county — Post-Tyler, MD’s TP § 14-818 balance-to-owner rule is the constitutional safety valve; Edmondson tests whether Baltimore actually delivered it.

10. Operations

  • Where records live: County Finance/Treasurer (collector) offices conduct tax sales and hold balances; circuit court for foreclosure-of-redemption actions; land records (Maryland State Archives / county Clerk) for deeds; Maryland Comptroller Unclaimed Property for funds reported after dormancy.
  • Public access portals:
  • Typical costs: Redemption = sale amount + county interest (≈6–20%) + subs + capped expenses (title search ≤ $250, attorney fees ≤$500 pre-suit) (TP § 14-843).
  • Typical timelines: Certificate holder waits 6 months (9 owner-occupied) to sue; certificate voids at 2 years; surplus notice within 90 days of deed.
  • Key agencies: County Directors of Finance/Treasurers; State Tax Sale Ombudsman (Dept. of Assessments & Taxation); Office of Financial Regulation (mortgage surplus purchasers); Comptroller (unclaimed property).
  • Useful forms: County surplus-claim forms; certificate-of-sale; complaint to foreclose right of redemption (circuit court). (Form numbers vary by county — needs_verification.)

2b. Redemption Advanced

Assignability of the Redemption Right

Maryland Tax-Property § 14-827 states that “the owner or other person that has an estate or interest in the property sold by the collector may redeem the property at any time until the right of redemption has been finally foreclosed.” The statutory right of redemption runs with the interest in the property, not as a freestanding personal right. Any mortgagee, lienholder, heir, or other holder of an estate or interest in the property may exercise it independently. There is no appellate authority establishing that an otherwise uninterested third party can purchase a bare assignment of the TP § 14-827 redemption right from the owner (i.e., a person with no independent property interest). (needs_verification — no case squarely holds that a bare assignment of the redemption right to a stranger is enforceable.) — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-827

Equitable Redemption vs. Statutory Redemption

Maryland recognizes the common-law distinction:

  • Equitable redemption (pre-sale): The owner’s inherent equity right to cure tax delinquency and prevent the sale by paying before the gavel falls. This is available any time before the annual tax sale occurs and is exercised directly with the collector.
  • Statutory redemption (post-sale): The right codified in TP § 14-827 — available after the sale and continuing until the circuit court enters a final judgment foreclosing the right (TP § 14-844). These are distinct phases; the statutory right does not begin until the equitable window closes at the sale.
  • Both rights are tied to holding an “estate or interest” in the property; the statutory right does not require continued possession.

(needs_verification — the specific terminology “equitable redemption” vs “statutory redemption” is not explicitly used in Title 14; the above is a common-law-to-statute mapping confirmed by secondary Maryland practitioner sources.)

Installment Redemption

No provision in TP Title 14 authorizes installment or partial payment of the redemption amount. Redemption requires a single lump-sum payment of all amounts specified in TP § 14-827 and § 14-843 to the collector. Some counties may operate pre-sale payment plan programs under TP § 14-811(c) to avoid the sale entirely, but those are distinct from post-sale redemption. (needs_verification — county-level payment plan availability for post-sale redemption not confirmed.)

Assignment of the Tax Sale Certificate (Purchaser Side)

The purchaser’s certificate of sale is freely assignable under TP § 14-821(a). The assignment vests in the assignee all of the original purchaser’s right, title, and interest. Assignment is accomplished by the short-assignment-of-mortgages procedure (incorporating by reference). Exception: A certificate issued to a purchaser at a limited auction under TP § 14-817(d) (the Prince George’s County abandoned-property limited auction) may not be assigned to another person. In all other cases, the Maryland Supreme Court confirmed in Mayor & City Council of Baltimore v. Thornton Mellon LLC, No. 6, Sept. Term 2021 (Md. May 3, 2022) that the certificate remains assignable until the deed is executed and delivered — even after a circuit-court foreclosure judgment has been entered — because the judgment alone does not constitute a deed. — https://law.justia.com/cases/maryland/court-of-appeals/2022/6-21.html ; https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-821&enactments=false

3b. Surplus Advanced

Claim Assignability

  • Tax-sale surplus (TP § 14-818): There is no express Maryland statute authorizing or prohibiting full outright assignment of a tax-sale surplus claim. The county claim process is designed for the “person entitled” (typically the prior owner of record). County-level practices vary; Baltimore County requires a court order to disburse surplus to a third party. (needs_verification — no primary statute confirms full assignment of the TP § 14-818 claim is enforceable.)
  • Mortgage-foreclosure surplus (RP § 7-314): A Foreclosure Surplus Acquisition is explicitly defined as a “transfer, sale, or assignment of the surplus remaining and due the homeowner,” meaning full outright assignment is permitted by statute. The assignee (called a “Foreclosure Surplus Purchaser”) must comply with a written contract regime. There is no fee-cap percentage specified in RP § 7-314, but any provision imposing costs or fees greater than circuit court filing fees is void. This statute is administered by the Office of Financial Regulation and applies to mortgage foreclosure surplus, not tax-sale surplus. — https://www.labor.maryland.gov/finance/industry/frforeclosuresurplus.shtml ; https://law.justia.com/codes/maryland/real-property/title-7/subtitle-3/part-iv/section-7-314/

Statute of Limitations on Surplus Claims

  • Tax-sale surplus: TP § 14-818 contains no express filing deadline for a surplus claim. In practice, unclaimed county funds held as tax-sale balances are reported to the Maryland Comptroller’s Unclaimed Property unit after the standard 3-year dormancy period under the general unclaimed-property statute, and the claim remains reclaimable from the State indefinitely thereafter. The trigger event is 90 days after deed delivery (date the collector must notify the prior owner), but no statutory bar extinguishes the claim. (needs_verification — no Title 14-specific escheat deadline confirmed; relying on general Comptroller dormancy practice.) — https://www.marylandcomptroller.gov/unclaimed-property/faqs.html
  • Mortgage-foreclosure surplus (RP § 7-314/§ 7-315): The homeowner’s rescission right runs for 10 days after the statement of audit account of the foreclosure sale. The broader claim deadline for surplus funds in a mortgage foreclosure court proceeding follows the court’s own distribution schedule.

Competing Claimant Procedure

Under TP § 14-818(a)(5), if a dispute arises about who is entitled to the balance, the county may deposit the funds with a court of competent jurisdiction pending judicial determination. There is no statutory “first-to-file wins” race; priority is determined by the court based on the claimant’s interest. Junior mortgagees and lienholders who were parties to the foreclosure proceeding may assert claims in that proceeding; otherwise they must petition the court. Baltimore County, for example, will not disburse to any third-party claimant without a signed court order. — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-818

Deceased Owner Procedure

When the prior owner of record is deceased, the “person entitled to the balance” is the decedent’s estate, accessed through the estate’s personal representative. County procedures reviewed (Baltimore County, Carroll County) require a letter of administration (or letter testamentary) from the Register of Wills establishing the personal representative’s authority before surplus will be disbursed. An heir without probate authority generally cannot claim directly without first opening an estate or qualifying for simplified small-estate procedures under Maryland Estates & Trusts Article § 5-601 et seq. (needs_verification — whether a bare heir can use a simplified affidavit for small tax-sale surpluses without full administration not confirmed from primary source.) — https://registers.maryland.gov/main/admin.html

Fraudulent Conveyance Exposure

If a former owner assigns a surplus claim to a third party while insolvent, Maryland’s Uniform Fraudulent Conveyance Act (Md. Code, Commercial Law § 15-201 et seq.) applies. Maryland has not adopted the UVTA — it retains the UFCA. Key exposure:

  • CL § 15-204: A conveyance by an insolvent person without fair consideration is fraudulent as to creditors regardless of actual intent.
  • CL § 15-207: A conveyance with actual intent to hinder, delay, or defraud present or future creditors is fraudulent. A surplus-claim assignment for below-market consideration (e.g., a heavily discounted assignment) while the owner has outstanding judgment creditors could be avoided by a trustee in bankruptcy or by creditors under these provisions. An assignment for fair consideration is less exposed to avoidance than one paying a fraction of the claim’s value. — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcl&section=15-207

Court Notification of Lienholders

In the foreclosure-of-redemption proceeding (which extinguishes junior interests), TP § 14-836 requires that parties with an interest in the property be joined as defendants, entitling them to participate. The court’s judgment runs against all such parties. Lienholders not joined are not bound and may retain their claims. Maryland does not operate a separate surplusnotification system outside that foreclosure proceeding for tax-sale balances. — https://law.justia.com/codes/maryland/tax-property/title-14/subtitle-8/part-iii/section-14-836/

5b. Title Advanced

Quiet Title — When Required

After a Maryland tax-sale foreclosure judgment under TP § 14-844, the judgment itself “vests an absolute and indefeasible title in fee simple” and extinguishes prior encumbrances (with the exceptions of post-sale taxes, record easements, and observable easements). A separate quiet title action is not legally required — the foreclosure-of-redemption judgment functions as the judicial title-clearing mechanism. However, in practice, a quiet title action under Maryland Real Property § 14-602 or § 14-108 is often recommended or required by title insurers if there are unresolved notice defects, uncured parties not joined, or other clouds on the foreclosure record. — https://law.justia.com/codes/maryland/real-property/title-14/subtitle-6/

Action Type and Court

Quiet title in Maryland is a judicial action filed in the circuit court for the county in which the property is located (RP § 14-602; RP § 14-108). There is no administrative quiet-title route for tax-deed properties. The circuit court has full equity jurisdiction to hear these matters.

Typical Timeline and Cost

  • Uncontested: 3–6 months; attorney fees $1,500–$5,000.
  • Contested or requiring publication service: Add 2–3 months and potentially $10,000+ in attorney fees.
  • Filing fees vary by county; publication costs additional. (These figures are from secondary practitioner sources; needs_verification against current filing schedules.)

Defects Cured

A successful foreclosure-of-redemption judgment cures most pre-judgment interests. A subsequent quiet title action cures remaining clouds. However, parties not properly served in the foreclosure proceeding (due to notice defects) are not bound by the judgment and may reopen it — making adequate notice compliance the primary pre-foreclosure diligence item. See Scott v. Seek Lane Venture (1992) (Module 8).

Maryland Marketable Title Act

Maryland does not have a Marketable Title Act. The standard for examining marketable title in Maryland is a 60-year chain of title search, based on case law (secondary practitioner consensus). This means tax-deed purchasers cannot rely on a statutory look-back period to clear pre-lien defects; a complete title history to the root of title (or 60 years, whichever is shorter in practice) is the norm. (needs_verification — the 60-year standard is from a secondary source; no single statutory citation.)

Deed Seasoning and Title Insurance

  • Title insurers routinely require seasoning of 2–3 years post-foreclosure judgment (or post-deed recording) before underwriting a standard owner’s or lender’s policy on a tax-deed property without additional curative steps. This reflects the risk that defectively noticed parties could reopen the judgment.
  • Immediate title insurance can sometimes be obtained if the insurer is satisfied that all required parties were properly served and joined in the foreclosure proceeding, the foreclosure judgment is uncontested, and all notice requirements of TP § 14-833(a-1) were fully met.
  • Title insurers known to write Maryland tax-deed policies: Stewart Title, Old Republic, and several specialty insurers write on a case-by-case basis. (needs_verification — these seasoning practices and insurer names are based on practitioner secondary sources; no published underwriting bulletin retrieved.)

Judicial Confirmation Before Deed

The circuit court’s final judgment foreclosing the right of redemption (TP § 14-844) is itself the judicial confirmation. The court must enter final judgment before the deed issues; there is no separate ratification hearing. The deed is then issued by the collector after the judgment has been enrolled and all subsequent taxes paid (TP § 14-831).

Chain of Title Cure Depth

The TP § 14-844 judgment clears “all alienations and descents of the property occurring before the date of the judgment and encumbrances on the property,” with the narrow exceptions noted. For practical title purposes this covers all junior and senior private encumbrances (mortgages, judgment liens, HOA liens pre-judgment). It does not clear: post-sale taxes, recorded/observable easements, ground rents, federal tax liens where IRS was not properly noticed (see Module 7b), or CERCLA-type environmental liabilities running with the land under federal law.

5c. TRO & Injunctive Relief

Recognized Grounds for Relief

The following grounds support an application to halt a Maryland tax or mortgage foreclosure sale by TRO or preliminary injunction:

  • Notice defect: Sale or foreclosure notice failed to meet constitutional or statutory requirements (TP § 14-833(a-1); Scott v. Seek Lane Venture; Jones v. Flowers).
  • Payment dispute: Taxes were paid or not actually delinquent (cf. Heartwood 88 — void-sale doctrine; sale of paid-up parcel).
  • Constitutional / Fifth Amendment Takings: Where the surplus regime fails to deliver equity to the owner (Edmondson v. Baltimore applying Tyler).
  • Homestead / heir protections: HB 59 / TP § 14-811 withholding requirements were not honored for eligible owner-occupied or heir property.
  • SCRA / servicemember protections: Active-duty servicemember entitled to stay of proceedings under the Servicemembers Civil Relief Act.
  • Bankruptcy automatic stay: A filed Chapter 7/11/13 petition automatically stays both the tax-sale proceedings and mortgage foreclosure under 11 U.S.C. § 362.
  • Procedural defect in foreclosure proceeding: Any substantial defect in the TP § 14-833 prerequisites (e.g., notices not sent, required waiting periods not honored).

Maryland courts apply a four-part test for TROs and preliminary injunctions:

  1. The movant has a right that will be irreparably damaged absent the order.
  2. The balance of hardships favors the movant (benefits to plaintiff ≥ harm to defendant).
  3. The movant will suffer irreparable injury without the order.
  4. Where applicable, public interest is best served by granting the order.

The movant must also show “a real probability of prevailing on the merits.” Loss of a home or real property is generally recognized as irreparable injury. — https://www.baldwinbriscoe.com/how-injunctions-work/

Court with Jurisdiction

The circuit court for the county in which the property is located has jurisdiction. For a tax-sale challenge, the same circuit court that would hear the foreclosure-of-redemption complaint is the proper venue. For mortgage foreclosures (which are also circuit-court proceedings), the motion is filed in the existing case. Emergency motions may be heard ex parte in urgent cases; the TRO lasts no more than 10 days for a Maryland-resident defendant (35 days for nonresidents), extendable for good cause.

Bond Requirement

A bond is discretionary — the court “may require” the party receiving the TRO to post a bond to protect the other party from damages if the TRO is wrongly granted. Bond amounts vary by case. Courts may waive or reduce bond for low-income homeowners.

Emergency Timeline

An emergency TRO can be obtained within 24–48 hours if properly filed with supporting affidavits before the scheduled sale. Courts will hear ex parte applications when notice to the other side is impracticable. For mortgage foreclosures, Maryland’s power-of-sale procedure is conducted under court supervision, providing an additional avenue to file a motion in the existing case to stay the sale.

Effect on a Completed Sale

  • Tax sale (annual auction): Maryland’s annual tax sale is an administrative auction, not itself a judicial proceeding. If a sale is completed before a TRO issues, the sale is generally not voided merely by a subsequent injunction order. The proper remedy after a completed sale is either (a) redemption during the redemption period, (b) a motion in the foreclosure-of-redemption action to raise defects, or (c) a § 1983 / takings claim if constitutional violations occurred. Where a sale is void from inception (e.g., taxes were paid — Heartwood 88), no TRO is needed; the purchaser has no certificate rights.
  • Mortgage foreclosure: A court-supervised sale completed before the TRO issues may still be challenged via a timely exception to ratification (the court has not yet ratified), but once the court ratifies the sale, it is difficult to unwind. Courts treat ratification as the point after which relief is generally unavailable. (needs_verification — no specific Maryland appellate holding found on TRO effect on a completed-but-unratified mortgage foreclosure sale.)

Non-Judicial Foreclosure Note

Maryland mortgage foreclosure is not non-judicial — it is conducted under circuit court supervision with a ratification step. This means the court retains power to halt or condition the sale at any stage before ratification. This is a significant advantage over non-judicial states where the gavel is final.

7b. Lien Survival & Purchaser Exposure

IRS 120-Day Redemption Right (26 U.S.C. § 7425)

Applies in Maryland. Under 26 U.S.C. § 7425(b) and (d), when real property is sold to satisfy a lien having priority over a federal tax lien that was properly noticed before the sale, the IRS has the right to redeem within:

  • 120 days from the date of sale, or
  • The period allowable under local law (whichever is longer).

For Maryland tax sales, the local redemption period is open-ended (until foreclosure judgment — potentially years). The IRS’s 120-day right therefore typically runs from the date of the tax auction. To trigger this right, the IRS must have had a noticed federal tax lien on the property before the tax sale. Pre-sale notice to the IRS (≥ 25 days before a non-judicial sale) is required under § 7425(c). — https://www.law.cornell.edu/uscode/text/26/7425

Practical note: County tax collectors in Maryland are required to notify the IRS (and state tax authorities) of the sale if a federal or state tax lien appears in the record. Filed federal tax liens are searchable in the circuit court land records and the IRS lien database before bidding.

HOA Super-Priority Liens

Maryland has a limited HOA/COA super-priority lien under Maryland Real Property and Condominium Act provisions. Key parameters:

  • Super-priority amount: Four months of unpaid assessments or $1,200, whichever is less (expressly excluding interest, collection costs, attorney’s fees, special assessments, and late charges).
  • Trigger: Applies when a holder of a mortgage or deed of trust recorded on or after October 1, 2011 forecloses. The HOA’s super-priority lien receives priority over that mortgage for the capped amount.
  • Does not survive ahead of tax liens: The HOA super-priority explicitly does not take priority over liens held by the state, county, or municipality (including property tax liens). A tax-sale purchaser therefore takes free of the HOA’s super-priority position vis-à-vis the tax lien.
  • Survives tax-sale foreclosure judgment? Under TP § 14-844’s “free and clear of all … encumbrances” language, pre-judgment HOA liens are extinguished by the foreclosure judgment. However, the purchaser immediately assumes liability for HOA assessments accruing from the date of judgment forward (TP § 14-844 post-judgment liability language).
  • Survives mortgage foreclosure? The HOA’s super-priority (≤ $1,200) survives a mortgage foreclosure by the mortgage holder for the capped amount on post-Oct. 1, 2011 mortgages. — https://www.lakesidetitle.com/maryland-lien-priority-super-liens/ ; https://www.nolo.com/legal-encyclopedia/maryland-hoa-coa-foreclosures.html

(needs_verification — HOA super-priority survival through TP § 14-844 tax-sale judgment based on statutory text analysis; no Maryland appellate case specifically on point found.)

Environmental Liens (CERCLA / State Superfund)

  • CERCLA federal lien: Under federal law, the United States holds a CERCLA lien for cleanup costs. The CERCLA lien is subordinate to state-law liens that were perfected before the notice of the CERCLA lien was recorded. Whether the TP § 14-844 “free and clear” language extinguishes a previously-recorded CERCLA lien is unsettled in Maryland case law. The IRS/EPA position is that CERCLA cleanup cost liens are not discharged by state tax sales absent compliance with notice requirements comparable to 26 U.S.C. § 7425. (needs_verification — no Maryland appellate authority on CERCLA lien survival through TP § 14-844 judgment found.)
  • Maryland state environmental super-lien: Maryland’s Hazardous Substance Control Act may impose cleanup-cost liens on contaminated property. Whether such liens have super-priority over tax sale certificates is not confirmed from a retrieved primary source. (needs_verification.)

Municipal Code / Blight Liens

Maryland counties and municipalities may impose code-enforcement liens (for demolition, remediation of unsafe structures, board-up costs, etc.). Under the broad language of TP § 14-844, pre-judgment municipal encumbrances are generally extinguished by the foreclosure judgment — but only if the municipality was properly joined as a defendant in the foreclosure proceeding. A municipality that was not joined retains its lien. Purchasers should identify and account for known municipal liens in the foreclosure proceeding. — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-844

(needs_verification — whether specific blight/code-enforcement liens have statutory super-priority language that would survive notwithstanding TP § 14-844 not confirmed from primary source.)

Mechanic Liens

Mechanic liens recorded before the tax sale and whose holders were not joined in the foreclosure of redemption proceeding are not extinguished by the final judgment (TP § 14-844 bars unjoined parties from the proceeding’s res judicata effect). Properly served mechanic lien holders whose redemption rights were foreclosed are bound by the judgment. (needs_verification — no primary case squarely on mechanic liens through TP § 14-844 found.)

Junior Mortgage Exposure

A tax-sale purchaser who obtains a foreclosure judgment under TP § 14-844 takes the property free of junior mortgages that were recorded before the tax-sale judgment — provided those mortgage holders were joined as defendants in the foreclosure proceeding. Senior mortgages (recorded before the tax lien) may present complications: the tax lien is generally senior in Maryland, but if a mortgage holder was not served, the purchaser may face a remaining claim.

Recurring failure mode: A foreclosure proceeding that does not join all holders of interests of record (junior mortgagees, HOAs, judgment creditors) leaves those interests in place. Scott v. Seek Lane Venture (1992) illustrates the point: failing to serve an HOA/lot-owner association resulted in the judgment being set aside.

Due Diligence Checklist

  1. Federal tax lien search — IRS lien database + circuit court land records for filed federal tax liens (triggers § 7425 notice obligation and 120-day redemption right).
  2. State tax lien search — Maryland Comptroller lien filings.
  3. UCC search — UCC-1 fixture filings in Maryland SDAT.
  4. Environmental / CERCLA search — EPA Superfund site list; Maryland MDE database for known contaminated sites.
  5. HOA / COA status — Current assessment balance; any super-priority lien filed (≤ $1,200 cap).
  6. Municipal code liens — County or municipal code enforcement records for pending or filed liens.
  7. Mechanic liens — Maryland land records for filed mechanic liens.
  8. Judgment liens — Circuit court judgment index for the county.
  9. Bankruptcy search — PACER (federal bankruptcy court) for filed petitions imposing automatic stay.
  10. Ground rent / leasehold status — Maryland does not extinguish ground rents through TP § 14-844; verify if the property is subject to a ground rent (particularly in Baltimore City).

10b. Purchaser Obligations During the Redemption Period

Must Pay Subsequent Taxes?

Not legally compelled, but a practical condition of taking the deed. Under TP § 14-831, property continues to be assessed normally during the redemption period, and subsequent taxes (plus interest and penalties) accruing after the sale date become additional liens against the property. The collector may not issue the deed until all subsequent taxes, interest, and penalties are paid in full. A certificate holder is not legally compelled to pay interim taxes (a third party could pay them separately); failure to pay leaves the certificate exposed to the risk that another tax sale occurs on the same parcel. In practice, certificate holders routinely pay subs. Exception: If the county government or a land bank authority holds the certificate, the collector may deliver the deed without requiring payment of unpaid subsequent taxes. — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-831

Must Notify Owner Before Expiration?

Yes — pre-foreclosure notice is required by statute. Before filing the complaint to foreclose the right of redemption, the certificate holder must send two written notices (TP § 14-833(a-1)):

  • First notice: May not be sent until at least 4 months after the date of sale (7 months for owner-occupied residential).
  • Second notice: Sent at least 1 week after the first notice.
  • Filing window: The complaint may not be filed until at least 2 months after the first notice and at least 30 days after the second notice.

Notices must be sent by certified mail (and first-class mail where applicable) to the owner of record and to the current mortgage servicer/holder of record. An affidavit of compliance must be filed with the court. Failure to comply with these notice requirements is a bar to filing the foreclosure complaint.

Note: There is no separate “notice of imminent expiration” obligation beyond these two pre-foreclosure notices. The 2-year certificate void date (TP § 14-820) is not a “expiration notice” trigger — it is simply the outer limit by which the holder must act or forfeit the certificate. — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-833

Owner Occupancy Rights During Redemption

The owner retains all rights of possession and occupancy during the redemption period. TP § 14-830 provides that “the rights of the purchaser are those of a lien holder, not a title holder”; the owner continues to occupy and collect rents. The certificate holder may not enter the property, make alterations, or collect rents during the redemption period. A receiver may be appointed by the court on the certificate holder’s petition where waste is occurring and conservation expenses are needed (TP § 14-830). — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-830

Costs Collectible Upon Redemption

Under TP § 14-843, when the owner redeems, the holder is entitled to:

  • The original sale amount (lien) with interest at the county redemption rate.
  • Subsequent taxes paid by the holder with interest and penalties.
  • Expenses (recoverable only after 4 months from the sale date): recording costs, title search fees ≤ $250, postage/certified-mail costs, and reasonable attorney's fees ≤$500 (or ≤ $1,000 for owner-occupied residential with a higher threshold set by the 2025 reform).
  • These caps are mandatory; the holder cannot contractually inflate them. — https://codes.findlaw.com/md/tax-property/md-code-tax-property-sect-14-843/

Property Maintenance Obligation

The certificate holder has no obligation to maintain the property during the redemption period; the owner retains possession and responsibility. The holder may not make alterations or repairs without the owner’s consent. However, if the property is deteriorating (waste), the certificate holder may petition the circuit court for appointment of a receiver and to have conservation expenses added to the redemption amount under TP § 14-830.

11b. Restrictions & Special Rules

Entity Purchase Restrictions

  • LLCs permitted: Maryland does not restrict tax-sale bidding to natural persons. LLCs, corporations, partnerships, and other entities may bid, provided they present satisfactory evidence of the entity’s legal existence to the collector (TP § 14-817(a)(4)(i)).
  • Foreign entities permitted: No statutory prohibition on out-of-state or foreign entities bidding.
  • Anti-collusion rule: Every bidder must “refrain from any act, agreement, consent, or conspiracy to suppress, predetermine, rig, or fix the bidding” (TP § 14-817(a)(4)(iii)); violation can result in disqualification.
  • Limited-auction exception (Prince George’s County): Under TP § 14-817(d), a special abandoned-property limited auction is available only to specified eligible bidders (county employees, veterans, county residents) — a preference mechanism, not a general prohibition. — https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtp&section=14-817&enactments=false

Insider / Prohibited Bidder Rules

Maryland’s statewide TP § 14-817 contains no blanket statutory prohibition on collector employees or government officials bidding at tax sales. Individual county terms of sale may impose additional restrictions. (needs_verification — county-level insider prohibitions in published terms of sale not systematically reviewed.)

Right of First Refusal (Municipalities / CDCs / Land Banks)

  • Municipalities / counties: Maryland does not create a general statutory right of first refusal for municipalities at the annual tax auction. However, a county or municipal corporation may withhold properties from the auction entirely under TP § 14-811 (redevelopment designation, blight abatement, etc.), and the collector delivers a certificate of sale to the governing body for withheld properties (TP § 14-820.1). This is functionally equivalent to a pre-auction government acquisition right, though not labeled ROFR.
  • Land banks: Maryland does not have a uniform statewide land bank statute. Baltimore City has operated a targeted property-acquisition and disposition program; some counties use development authorities. Properties withheld under TP § 14-811 and issued certificates under § 14-820.1 may be transferred to a local authority or land bank entity by the governing body. (needs_verification — specific enabling statute for a Baltimore City or other county land bank not confirmed from a retrieved primary source; HB 1268 / 2018 reportedly authorized a Baltimore City land bank.)
  • CDCs / nonprofits: No statutory ROFR for community development corporations or nonprofits at Maryland tax sales confirmed.

Land Bank Program

  • Existence: Informal/targeted programs exist in Baltimore City; no comprehensive statewide land bank authority statute retrieved. (needs_verification.)
  • Receives unsold properties: Counties may re-offer unsold parcels at a later date; withheld properties go to the governing body via TP § 14-820.1 certificate delivery.
  • Operational notes: Purchasers at tax sales should confirm with the county whether any withheld-property pipeline will affect the parcel; if the county holds a certificate via § 14-820.1, no private certificate exists for that parcel.

Deficiency Judgment Rules

After tax sale: There is no deficiency judgment in the Maryland tax-sale process. The tax-sale certificate system is not a foreclosure of a personal debt obligation; the certificate holder’s remedy is title — not money damages. After the foreclosure-of-redemption judgment, the purchaser acquires fee-simple title and has no claim for any “deficiency.”

After mortgage foreclosure:

  • Allowed: Yes. Under RP § 7-105.13, the secured party may file a motion for deficiency judgment in the circuit court within 3 years after the final ratification of the auditor’s report.
  • Fair-value offset: The statute allows a deficiency motion based on the difference between the debt and the foreclosure sale proceeds. (needs_verification — whether Maryland courts apply an equitable fair-market-value floor on the sale price for deficiency purposes, as some states do, is not confirmed from a retrieved primary case.) — https://law.justia.com/codes/maryland/2017/real-property/title-7/subtitle-1/section-7-105.13/
  • Collection period: 12 years; extendable for an additional 12 years before the period ends.

Anti-Deficiency Statute

Maryland has no anti-deficiency statute of general application. Deficiency judgments are permitted after mortgage foreclosure sales. (needs_verification — confirm no statute in RP Title 7 bars deficiency for purchase-money mortgages or owner-occupied residences.) — https://law.justia.com/codes/maryland/2017/real-property/title-7/subtitle-1/section-7-105.13/

One-Action Rule

Maryland does not have a one-action rule. A secured lender may pursue the collateral through foreclosure and also sue on the note for a deficiency (subject to the 3-year window for the deficiency motion under RP § 7-105.13). (needs_verification — confirm no Maryland Rule or statute imposes a one-action limitation.) — https://law.justia.com/codes/maryland/2017/real-property/title-7/subtitle-1/section-7-105.13/

Who this page is for

▸ For Investors / Operators — Start with §1 (highest-good-faith-bid auction, the TP § 14-817(b) high-bid premium = 20% of the bid over 40% of full cash value, and county-set redemption interest ≈6–20%), §2/2b (open-ended redemption until foreclosed, the 6-month/9-month wait and 2-year certificate-void date, and that the certificate of sale is freely assignable until the deed issues — Mayor v. Thornton Mellon), §5b (path to marketable title — the TP § 14-844 indefeasible-title judgment, the practical need for quiet title/seasoning, and Maryland’s lack of a Marketable Title Act), §7b (liens that survive — HOA super-priority capped and subordinate to the tax lien, IRS § 7425 120-day redemption, unjoined parties of record), and §11b (broad entity eligibility, the Prince George’s limited-auction exception, no deficiency after a tax sale).

▸ For Former Owners — Start with §3 (the surplus balance belongs to the former owner of record; TP § 14-818 directs the collector to hold it and to notify you within 90 days of deed delivery; the county claim process needs no court order absent a dispute), §2 (redemption — paying the lien amount plus county interest and capped expenses at any time until the right is finally foreclosed), and §5c (grounds, the discretionary bond, and procedure for an emergency motion to halt a scheduled sale).

11. Meta

Local pages

County deep dives: anne-arundel-md, baltimore-city-md, baltimore-md, frederick-md, harford-md, howard-md, montgomery-md, prince-georges-md Unclaimed funds agency: unclaimed-property-maryland

Legal information, not legal advice. This page summarizes Maryland law from the cited primary sources as of the last_verified date. Statutes, rates, and case law change; county practices vary. Verify against the current Maryland Code, the applicable county’s terms of sale, and the Maryland Rules, and consult a licensed Maryland attorney before acting. Last verified: 2026-06-02.

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