ÿWPC ÂÓ¸!½Xo»xEW窽¨Bä³&bE‘Ûk›€Z·¢5~ÿ¹KÉýŒÌšN„ó<Ã+…ªŸ‹n |Òöiã6äúvó=¾4ÅÈŸ+ë“ÃAdƒÿ­æ¯Äý×¥ëóü`$ F©£9¹&”±LSPÌø@”ØåÈš¨s/9@ £ ^ì6fvÃ߆ }™j»ÝS¥à6äîòBï}Ê$xµhóÀjad)C?bÅø×wÃ<,hr¥º+¶Al¯ ®º~„$Ô"”p[hº½Âžëb^ÕÖB"šÀA+¶÷Ž‘v[†ƒ4‚²mF;O29¢4¤™h0Fà_HÁÿ0DUf7¾@¸™½Œ J¬®¨ÆÐØq|bãȃ£‹õ*‚Œ'_íB¶uÇG׋EtÕצV¯¶6Ñ&ƒÚ§¸Þ6¶äƒŠ"ͪÂ.…‡…¦›h󶜺²íÎA Æ©äe§ÜËÙpìÜ8¶µ¯†^#vËgHæ97Ï­×ÿeª8¼f²hLUJDž@ÚKo Л¬‡^Ó‡Éô"cÂÒ›Yd2z¹ôXÀ¥µ<¢ß#c—£ZÜûÎ5 ÑÈf1 t#ÌèâjÙ¦¿±{½¦¬&FêHᾨ„œo×ùAp#ÁüUN½ %  0:U8KUFƒ^ ÉwÕ4Ùíü mþN0 0NGGb•˜HP Color LaserJet 5550 PCL 5cÈÈ,,,,ÈÈ0(ÖÃ9 Z‹6Times New Roman RegularX(üœ$¡¡ÔUSUS.,Ô<4šÛ 9Z+‹ Courier New <4šÛ 9Z+‹.Courier New Regularýuï8â U…è8î8#‚Backup3|xÿU‹ÿÀÀÀ159threportchapter2.pdf(ÍO$——ÔÿÔòòóóÔÿÔ- ù-Ý ƒüœ!ÝÔUSUS.,ÔÝ  ÝÔ_ÔÑX°ÑÔ€XuTXXXÔÔ‡XuTXXXuTÔÑ€ÑÑ  ÑÑ8€âTXXdìdÈ8ÑÌÌÌÌà@àà$ìàJuly€14,€2008ˆÐ X ÐÌÌÌÌà@ä ä ìàòòONE€HUNDRED€FIFTY„NINTH€REPORTóóˆÐ 6 †  Ðà@„„'ìàòòOF€THEóóˆÐ  \  Ðà@˜ ˜ ìàòòSTANDING€COMMITTEE€ON€RULESóóˆÐ â 2  Ðà@ìàòòOF€PRACTICE€AND€PROCEDUREóóˆÐ ¸  ÐÌÌThe€Honorable€Robert€M.€Bell,Ð :Š  Ðà  àà ` àà ¸ àà  àà h àChief€JudgeÐ `  ÐThe€Honorable€Glenn€T.€Ô_ÔHarrellÔ_Ô,€Jr.Ð æ6 ÐThe€Honorable€Lynne€A.€Ô_ÔBattagliaÔ_ÔÐ ¼  ÐThe€Honorable€Clayton€Greene,€Jr.Ð ’â ÐThe€Honorable€Joseph€F.€Murphy,€Jr.,Ð h¸ ÐThe€Honorable€Sally€D.€Ô_ÔAdkinsÔ_Ô,Ð >Ž Ðà  àà ` àà ¸ àà  àà h àJudgesÐ d Ðà  àThe€Court€of€Appeals€of€MarylandÐ ê: Ðà  àRobert€C.€Murphy€Courts€of€Appeal€BuildingÐ À Ðà  àAnnapolis,€Maryland€21401Ð –æ ÐÔ#†XuTXXXuTj#ÔÌÌYour€Honors:Ð h ÐÌà  àThe€Rules€Committee€submits€this,€its€One€Hundred€Fifty„Ð Ä ÐNinth€Report,€and€recommends€that€the€Court€adopt,€on€anÐ šê Ðemergency€basis,€the€proposed€amendments€to€Rules€2„122,€14„201,Ð pÀ  Ð14„203,€14„204,€and€14„205€transmitted€with€this€Report.Ð F –! ÐÌà  àThe€proposed€amendments€are€designed€primarily€to€conformÐ ò!B# Ðthe€Rules€relating€to€the€foreclosure€of€mortgages€and€deeds€ofÐ È"$ Ðtrust€against€residential€real€property€to€legislation€enacted€inÐ ž#î% Ðthe€2008€Session€of€the€General€Assembly,€principally€2008€Md.Ð t$Ä& ÐLaws,€Ch.€2€(HB€365),€which€took€effect€as€an€emergency€bill€onÐ J%š ' ÐApril€4,€2008.€€A€copy€of€that€Act€is€attached€as€an€Appendix€toÐ  &p!( Ðthis€Report.€€For€convenience,€this€Report€uses€the€termÐ ö&F") Ðð ðmortgageðð€and€ð ðmortgagorðð€as€including€deeds€of€trust€andÐ Ì'#* Ðgrantors€of€deeds€of€trust.Ð ¢(ò#+ ÐÌà  àBecause€foreclosure€proceedings€are€specialized,€somewhatÐ N*ž%- Ðtechnical€in€nature,€and€foreign€to€many€lawyers€and€judges,€itÐ $+t&. Ðmay€be€helpful€to€provide€some€context€to€both€the€legislation,Ð ú+J'/ Ðthe€proposed€Rules€changes,€and€impending€further€study€by€theÐ Ð, (0 ÐRules€Committee.Ð ¦-ö(1 ÐÌÐ  R/¢*3‘ ÐÔ_Ôà  àForeclosure€proceedings€have€been€regarded€as€òòin€remóóÐ ° Ðproceedings;€the€action€is€against€the€property,€not€theÐ ŒÜ Ðmortgagor€or€the€property€owner€(who€are€usually,€but€not€always,Ð b² Ðthe€same).€€In€mortgages€containing€a€power€of€sale,€which€mostÐ 8ˆ Ðdo,€the€proceeding€is€commenced€and€proceeds€on€an€ð ðOrder€toÐ ^ ÐDocket.ðð€€If€the€mortgage€does€not€contain€a€power€of€sale€butÐ ä4 Ðcontains€an€assent€to€a€foreclosure€decree,€the€proceeding€isÐ º  Ðcommenced€with€a€complaint€to€foreclose,€but,€because€of€theÐ  à Ðassent,€no€process€issues€against€the€mortgagor/owner.€€OnlyÐ f ¶ Ðwhere€there€is€neither€a€power€of€sale€nor€an€assent€to€aÐ < Œ  Ðforeclosure€decree€does€process€issue€and€the€case€proceed€as€aÐ  b  Ðnormal€civil€action.Ð è 8  ÐÌà  àAlthough€due€process€requires€that€a€reasonable€attempt€beÐ ”ä  Ðmade€to€notify€the€property€owner€of€the€proceeding,€in€the€vastÐ jº  Ðmajority€of€cases,€where€there€is€either€a€power€of€sale€or€anÐ @  Ðassent€to€a€foreclosure€decree,€no€process€issues€against€theÐ f  Ðmortgagor€or€owner,€and€they€are€ordinarily€not€parties€to€theÐ ì< Ðforeclosure€proceeding.€€The€proceeding€ð!ð€particularly€the€saleÐ Â Ðof€the€property€ð!ð€usually€proceeds€with€much€greater€expeditionÐ ˜è Ðthan€normal€civil€actions€involving€a€like€amount€of€money,€and,Ð n¾ Ðgiven€the€speed€at€which€the€action€proceeds€and€some€ambiguityÐ D” Ðregarding€the€amount€of€any€bond€that€may€need€to€be€posted,€theÐ j Ðpractical€ability€of€the€mortgagor/owner,€in€the€foreclosureÐ ð@ Ðproceeding,€to€raise€defenses€to€the€validity€of€the€mortgage€orÐ Æ Ðthe€right€of€the€lender€to€foreclose€is€limited.€€The€CourtÐ œì Ðrecently€dealt€with€some€of€these€issues€in€òòGriffin€v.€Biermanóó,Ð r Ð403€Md.€186€(2008)€and€òòWells€Fargo€v.€Nealóó,€398€Md.€705€(2007).Ð Nž ÐÌà  àChapter€2€ð!ð€one€of€several€bills€enacted€to€deal€with€theÐ P Ðdramatic€increase€in€foreclosures€against€residential€property,Ð Ö& Ðunprecedented€since€the€Great€Depression€and€estimated€to€reachÐ ¬ü Ð50,000€in€Maryland€ð!ð€imposes€several€new€requirements€onÐ ‚Ò  Ðplaintiffs€seeking€to€foreclose€on€residential€property,Ð X ¨! Ðincluding:Ð .!~" ÐÌà  àà ` à(1)€A€requirement€that,€at€least€45€days€before€filingÐ Ú"*$ Ða€foreclosure€action,€written€notice€of€an€intent€to€foreclose€isÐ °#% Ðsent€to€the€mortgagor/owner€by€first€class€and€certified€mail.€Ð †$Ö& ÐThe€notice€must€contain€certain€information,€including€the€amountÐ \%¬ ' Ðrequired€to€cure€the€default€and€the€name€and€telephone€number€ofÐ 2&‚!( Ðan€agent€of€the€secured€party€who€is€authorized€to€modify€theÐ 'X") Ðterms€of€the€loan.Ð Þ'.#* ÐÌà  àà ` à(2)€A€waiting€period€on€the€filing€of€a€foreclosureÐ Š)Ú$, Ðaction.€€Such€an€action€may€not€be€filed€until€the€later€of€90Ð `*°%- Ðdays€after€a€default€allowing€for€a€foreclosure€or€45€days€afterÐ 6+†&. Ðthe€notice€of€intent€to€foreclose€is€sent€to€the€mortgagor/owner,Ð  ,\'/ Ðunless€the€court,€on€petition,€which€may€be€ruled€upon€without€aÐ â,2(0 Ðhearing,€concludes€that€(i)€the€loan€was€procured€by€fraud€orÐ ¸-)1 Ðdeception,€(ii)€no€payments€have€ever€been€made€on€the€loan,Ð Ž.Þ)2 Ð(iii)€the€property€has€been€destroyed,€or€(iv)€the€defaultÐ ° Ðoccurred€after€a€bankruptcy€stay€was€lifted.€€It€is€not€clearÐ †Ö Ðfrom€the€statute€whether€this€petition,€which€seeks€to€excuseÐ \¬ Ðboth€the€requirement€of€the€45„day€notice€of€intent€and€the€90„Ð 2‚ Ðday€waiting€period,€is€an€òòex€parteóó€one,€whether€it€must€be€servedÐ X Ðon€the€mortgagor/owner,€if€required€to€be€served,€how€service€isÐ ä4 Ðto€be€effected,€or€how€or€within€what€period€the€mortgagor/ownerÐ º  Ðmay€contest€the€petition.Ð  à ÐÌà  àà ` à(3)€An€order€to€docket€or€a€compliant€to€foreclose€mustÐ < Œ  Ðinclude€an€affidavit€stating€the€date€of€default€and€the€date€onÐ  b  Ðwhich€the€notice€of€intent€was€sent€and€must€be€accompanied€byÐ è 8  Ðcertain€other€documents€and€affidavits,€including€a€noticeÐ ¾  Ðadvising€that€the€owner€may€stop€the€sale€by€paying€all€amountsÐ ”ä  Ðdue€on€the€loan€plus€all€accumulated€fees€and€costs.Ð jº  Ðà  àà ` àÌà  àà ` à(4)€The€order€to€docket€or€complaint,€along€with€allÐ f  Ðother€papers€filed€with€it,€must€be€served€on€the€mortgagor€byÐ ì< Ðpersonally€delivering€them€to€the€mortgagor€or€by€leaving€themÐ Â Ðwith€a€resident€of€suitable€age€at€the€mortgagorððs€home.€€If€aÐ ˜è Ðgood€faith€attempt€to€effect€such€service€on€two€different€daysÐ n¾ Ðproves€unsuccessful,€service€may€be€effected€on€the€mortgagor€byÐ D” Ðposting€the€property€and€by€first€class€and€certified€mail.Ð j ÐÌà  àà ` à(5)€A€sale€may€not€occur€until€at€least€45€days€afterÐ Æ Ðservice€is€made.€€The€sale€must€be€advertised€at€least€once€aÐ œì Ðweek€for€three€consecutive€weeks.Ð r ÐÌà  àà ` à(6)€Finally,€the€mortgagor€has€the€right€to€cure€aÐ n Ðdefault€and€reinstate€the€loan€by€paying€all€past€due€payments,Ð ôD Ðpenalties,€and€fees€any€time€up€to€one€business€day€before€theÐ Ê Ðsale.Ð  ð ÐÌà  àThe€Rules€Committee€proposes€that€the€Rules€governingÐ L œ! Ðforeclosures€against€residential€property€be€conformed€to€these,Ð "!r" Ðand€other,€statutory€provisions€in€the€following€manner:Ð ø!H# ÐÌà  àà ` à(1)€Amend€Rule€14„201,€which€defines€terms€used€in€theÐ ¤#ô% ÐTitle€14€Rules,€to€add€a€definition€of€ð ðresidential€property.ðð€Ð z$Ê& ÐThe€definition€is€identical€to€that€contained€in€Chapter€2€(Code,Ð P%  ' ÐReal€Property€Article,€ðð7„105.1€(a)).Ð &&v!( ÐÌà  àà ` à(2)€Amend€Rule€14„203,€which€provides€certainÐ Ò'"#* Ðconditions€precedent€to€the€filing€of€foreclosure€actions,€to€addÐ ¨(ø#+ Ða€new€subsection€(a)(3).€€The€new€subsection€repeats€theÐ ~)Î$, Ðconditions€set€forth€in€Chapter€2€(Code,€Real€Property€Article,Ð T*¤%- Ððð7„105.1€(c))€ð!ð€the€requirement€of€the€notice€of€intent€toÐ *+z&. Ðforeclose€(subsection€(a)(3)(B))€and€the€90€day/45€day€waitingÐ ,P'/ Ðperiod€before€an€order€to€docket€or€complaint€may€be€filedÐ Ö,&(0 Ð(subsection€(a)(3)(A)).Ð ¬-ü(1 ÐÐ ‚.Ò)2 Ðà  àà ` à(3)€Amend€Rule€14„204,€dealing€with€the€commencement€ofÐ ° Ða€foreclosure€action,€as€follows:Ð †Ö ÐÌà  àà ` àà ¸ à€(i)€Amend€subsection€(a)(4)€to€cross„referenceÐ 2‚ Ðthe€Federal€Servicemembers€Civil€Relief€Act,€which€supplanted€theÐ X Ðformer€Soldiersðð€and€Sailorsðð€Civil€Relief€Act;Ð Þ. ÐÌà  àà ` àà ¸ à(ii)€Add€a€new€subsection€(a)(5)€to€require€thatÐ Š Ú Ðan€order€to€docket€or€complaint€to€foreclose€against€residentialÐ ` ° Ðproperty€contain€the€information€and€papers€required€by€Chapter€2Ð 6 †  Ð(Code,€Real€Property€Article,€ðð7„105.1€(d));Ð  \  ÐÌà  àà ` àà ¸ à(iii)€Repeal€existing€section€(b),€which€tracksÐ ¸  Ðthe€requirements€of€a€statute€repealed€by€Chapter€2,€and€add€aÐ ŽÞ  Ðnew€subsection€(b)(1)€and€(b)(2)€to€provide€for€the€method€ofÐ d´  Ðservice€required€by€Chapter€2€ð!ð€personal€delivery€(subsectionÐ :Š  Ð(b)(1))€or,€failing€two€good€faith€attempts€at€personal€delivery,Ð `  Ðposting€the€property€and€notice€by€first€class€and€certified€mailÐ æ6 Ð(subsection€(b)(2)).€€The€Rules€Committee€agreed€with€theÐ ¼  Ðrecommendation€of€representatives€of€creditors€that€the€processÐ ’â Ðwould€be€made€more€efficient€by€providing€that€the€alternativeÐ h¸ Ðservice€is€complete€when€the€property€is€posted€and€the€mailingsÐ >Ž Ðhave€been€made€as€required€ð!ð€that€the€creditor€need€not€wait€forÐ d Ðthe€return€of€a€ð ðgreen€cardðð€with€respect€to€certified€mail.€€InÐ ê: Ðthat€regard,€the€Rules€Committee€notes€that€it€is€possible€forÐ À Ðthe€foreclosing€party€to€determine,€on€line,€whether€theÐ –æ Ðcertified€mail€was€delivered€and,€if€so,€to€whom.Ð l¼ ÐÌà  àà ` àà ¸ à(iv)€Add€a€new€subsection€(b)(3)€to€provide€aÐ h Ðmethod€of€proof€of€service,€which€must€be€filed€promptly€and,€inÐ î> Ðany€event,€prior€to€the€date€of€sale.€€Chapter€2€(Code,€RealÐ Ä ÐProperty€Article,€ðð7„105.1€(e)(3))€provides€that€proof€of€serviceÐ šê Ðshall€be€in€accordance€with€the€Maryland€Rules.€€New€subsectionÐ pÀ  Ð(b)(3)€implements€that€provision.€€Ð F –! ÐÌà  à(4)€Amend€Rule€14„205,€which€deals€with€actions€to€forecloseÐ ò!B# Ða€lien€instrument€or€statutory€lien€that€contains€neither€a€powerÐ È"$ Ðof€sale€nor€an€assent€to€a€foreclosure€decree.€€The€RulesÐ ž#î% ÐCommittee€is€advised€that€there€are€very€few€lien€instruments€ofÐ t$Ä& Ðthat€kind,€but€where€that€circumstance€exists,€the€action€Ð J%š ' Ðproceeds€like€any€other€civil€action.€€Section€(b),€dealing€withÐ  &p!( Ðnotice€in€foreclosures€of€residential€property,€references€aÐ ö&F") Ðstatute€repealed€by€Chapter€2,€and€is€therefore€repealed€asÐ Ì'#* Ðobsolete.€€Section€(a)€is€amended€to€add€the€requirement€thatÐ ¢(ò#+ Ðservice€in€foreclosures€of€residential€property€must€be€inÐ x)È$, Ðaccordance€with€Rule€14„204€(and€thus€with€Chapter€2).Ð N*ž%- ÐÌà  à(5)€Amend€Rule€2„122,€the€general€Rule€dealing€with€serviceÐ ú+J'/ Ðof€process€in€òòin€remóó€actions,€to€permit€the€posting€of€propertyÐ Ð, (0 Ðto€be€done€by€any€person€authorized€to€serve€process€inÐ ¬-ü(1 Ðaccordance€with€Rule€2„123€(a)€(the€sheriff€or€any€competentÐ ‚.Ò)2 Ðprivate€person,€18€years€of€age€or€older,€including€an€attorneyÐ ° Ðof€record€but€not€a€party€to€the€action),€and€not€just€by€theÐ †Ö Ðsheriff.€€The€Rules€Committee€saw€no€need€to€limit€the€posting€orÐ \¬ Ðproperty€to€the€sheriff.Ð 2‚ ÐÌà  àFor€the€further€guidance€of€the€Court€and€the€public,Ð Þ. Ðfollowing€the€proposed€amendments€to€each€Rule€is€a€ReporterððsÐ ´  ÐNote€describing€in€further€detail€the€reasons€for€the€proposalÐ Š Ú Ðand€any€changes€that€would€be€effected€in€current€law€orÐ ` ° Ðpractice.€€òòWe€caution€that€the€Reporterððs€Notes€were€preparedÐ 6 †  Ðinitially€for€the€benefit€of€the€Rules€Committee.€€€They€are€notÐ  \  Ðpart€of€the€Rules,€have€not€been€debated€or€approved€by€theÐ â 2  ÐCommittee,€and€are€not€to€be€regarded€as€any€kind€of€officialÐ ¸  Ðcomment€or€interpretation.óó€€They€are€included€solely€to€assistÐ ŽÞ  Ðthe€Court€in€understanding€some€of€the€reasons€for€the€proposedÐ d´  Ðchanges.Ð :Š  ÐÌà  àAlthough€these€Rules€are€submitted€for€adoption€as€emergencyÐ æ6 ÐRules,€notice€of€this€Report€has€been€placed€on€the€JudiciaryððsÐ ¼  Ðweb€site,€copies€have€been€sent€to€every€person€who€consultedÐ ’â Ðwith€the€Rules€Committeeððs€Property€Subcommittee€or€who€attendedÐ h¸ Ðthe€full€Rules€Committee€meeting€on€this€subject€on€June€27,Ð >Ž Ð2008,€and€an€effort€will€be€made€to€place€notice€in€the€òòDailyÐ d ÐRecordóó.€€Ð ð@ ÐÌà  àFinally,€it€appears€to€several€members€of€the€RulesÐ ¢ò ÐCommittee,€in€light€of€information€supplied€to€the€GeneralÐ xÈ ÐAssembly€or€reported€in€the€responsible€media€and€governmentÐ Nž Ðdocuments,€that€the€Rules€governing€foreclosure,€at€least€withÐ $t Ðrespect€to€residential€property,€need€to€be€more€widely€examined.€Ð úJ ÐThey€have€not€been€comprehensively€reviewed€for€decades.€€To€thatÐ Ð  Ðend,€a€special€subcommittee€has€been€appointed;€it€will€have€itsÐ ¦ö Ðfirst€meeting€on€July€21,€2008.€€The€subcommittee€will€attempt€to€Ð |Ì  Ðwork€with€all€interested€persons€and€groups€in€determiningÐ R ¢! Ðwhether€the€structure€of€and€procedures€in€foreclosure€actionsÐ (!x" Ðshould€be€changed€beyond€what€is€required€by€Chapter€2.€€Ð þ!N# ÐÌÌà  àà ` àà ¸ àà  àà h àà À àRespectfully€submitted,Ð €$Ð& ÐÌÌÌÌà  àà ` àà ¸ àà  àà h àà À àAlan€M.€WilnerÐ ®(þ#+ Ðà  àà ` àà ¸ àà  àà h àà À àChairÐ „)Ô$, ÐÌÌÌà  àà ` àà ¸ àà  àà h àà À àLinda€M.€SchuettÐ Ü,,(0 Ðà  àà ` àà ¸ àà  àà h àà À àVice€ChairÐ ²-)1 ÐAMW/LMS:cdcÐ  ˆ.Ø)2 Ðà@˜ ˜ ìàMARYLAND€RULES€OF€PROCEDUREˆÐ ° ÐÌà@\ \ ìàTITLE€14€„€SALES€OF€PROPERTYˆÐ \¬ ÐÌà@` ` ìàCHAPTER€200€„€FORECLOSURE€OF€LIEN€INSTRUMENTSˆÐ X ÐÌÌà  àAMEND€Rule€14„201€to€add€a€definition€of€ð ðresidentialÐ Š Ú ÐÌproperty,ðð€as€follows:Ð 6 †  ÐÌÌRule€14-201.€€SCOPE€AND€DEFINITIONS€Ð ¸  ÐÌÌÓÓ€€(a)€€ScopeÐ :Š  Ðà  à€€The€rules€in€this€Chapter€apply€to€foreclosure€of€liensÐ æ6 Ðupon€property€that€are€created€or€authorized€to€be€created€by€aÐ ’â Ðlien€instrument€or€are€created€by€a€statute€providing€forÐ >Ž Ðforeclosure€in€the€manner€specified€for€foreclosure€of€mortgages.Ð ê: ÐThe€procedure€set€forth€in€these€Rules€shall€provide€the€soleÐ –æ Ðremedy€for€the€vendor€for€repossession€of€property€sold€under€aÐ B’ Ðland€installment€contract€executed€pursuant€to€Code,€RealÐ î> ÐProperty€Article,€Title€10,€Subtitle€1€or€its€statutoryÐ šê Ðpredecessor.€€Otherwise,€the€foreclosure€procedure€provided€inÐ F –! Ðthese€Rules€does€not€preclude€other€remedies,€including€but€notÐ ò!B# Ðlimited€to€self-help,€that€may€be€available€under€Code,Ð ž#î% ÐCommercial€Law€Article;€Code,€Real€Property€Article;€or€otherÐ J%š ' Ðlaw.€€Ð ö&F") Ѐ€(b)€€DefinitionsÐ ¢(ò#+ Ðà  à€€The€following€definitions€apply€in€the€rules€in€thisÐ N*ž%- ÐChapter:€€Ð ú+J'/ Ѐ€€€(1)€€Assent€to€a€DecreeÐ ¦-ö(1 Ðà  à€€€€"Assent€to€a€decree"€means€a€provision€in€a€lienÐ ° Ðinstrument€declaring€an€assent€to€the€entry€of€an€order€for€theÐ \¬ Ðsale€of€the€property€subject€to€the€lien€upon€a€specifiedÐ X Ðdefault.€€Ð ´  Ѐ€€€(2)€€DebtÐ ` ° Ðà  à€€€€"Debt"€means€a€monetary€obligation€secured€by€a€lien.€€Ð  \  Ѐ€€€(3)€€DebtorÐ ¸  Ðà  à€€€€"Debtor"€means€the€record€owner€of€the€property€at€theÐ d´  Ðtime€the€lien€was€created€and€the€purchaser€under€a€landÐ `  Ðinstallment€contract.€€Ð ¼  Ѐ€€€(4)€€LienÐ h¸ Ðà  à€€€€"Lien"€means€a€statutory€lien€or€a€lien€upon€propertyÐ d Ðcreated€or€authorized€to€be€created€by€a€lien€instrument.€€Ð À Ѐ€€€(5)€€Lien€InstrumentÐ l¼ Ðà  à€€€€"Lien€instrument"€means€a€mortgage,€a€deed€of€trust,€aÐ h Ðland€installment€contract,€including€those€defined€in€Code,€RealÐ Ä ÐProperty€Article€ðð10-101€(b),€a€contract€creating€a€lien€pursuantÐ pÀ  Ðto€Code,€Real€Property€Article,€ðððð14-201€through€14-205,€a€deedÐ !l" Ðor€other€instrument€reserving€a€vendor's€lien,€an€instrumentÐ È"$ Ðcreating€or€authorizing€the€creation€of€a€lien€in€favor€of€aÐ t$Ä& Ðhomeowners'€association,€a€condominium€council€of€unit€owners,€aÐ  &p!( Ðproperty€owners'€association€or€a€community€association,€aÐ Ì'#* Ðsecurity€agreement,€and€any€other€instrument€creating€orÐ x)È$, Ðauthorizing€the€creation€of€a€lien€upon€the€property.€€Ð $+t&. Ѐ€€€(6)€€Power€of€SaleÐ Ð, (0 Ðà  à€€€€"Power€of€sale"€means€a€provision€in€a€lien€instrumentÐ |.Ì)2 Ðauthorizing€a€person€to€sell€the€property€upon€a€specifiedÐ ° Ðdefault.€€Ð \¬ Ѐ€€€(7)€€PropertyÐ X Ðà  à€€€€"Property"€means€real€and€personal€property€of€any€kindÐ ´  Ðsituated€within€this€State.€€Ð ` ° Ѐ€€€(8)€€Record€Owner€of€PropertyÐ  \  Ðà  à€€€€"Record€owner€of€property"€includes€the€record€holder€ofÐ ¸  Ðthe€rights€of€a€purchaser€under€a€land€installment€contract.Ð d´  Ѐ€€€òò(9)€€Residential€Propertyóó€€Ð `  Ðà  à€€€€òòð ðResidential€propertyðð€means€real€property€improved€byÐ ¼  Ðfour€or€fewer€single€family€dwelling€units.óóÐ h¸ ÐòòCross€reference:€€See€Code,€Real€Property€Article,€ðð7„105.1€(a)óóÐ d Ѐ€€€ò ò(9)ó ó€òò(10)óó€SaleÐ À Ðà  à€€€€"Sale"€means€foreclosure€sale.€€Ð l¼ Ѐ€€€ò ò(10)ó ó€òò(11)óó€Secured€PartyÐ h Ðà  à€€€€€"Secured€party"€means€a€mortgagee,€the€holder€of€a€noteÐ Ä Ðsecured€by€a€deed€of€trust,€a€vendor€holding€a€vendor's€lien,€aÐ pÀ  Ðcondominium€council€of€unit€owners,€a€homeowners'€association,€aÐ !l" Ðproperty€owners'€or€community€association,€and€any€other€partyÐ È"$ Ðsecured€by€a€lien.€€"Secured€party"€includes€any€assignee€orÐ t$Ä& Ðsuccessor€in€interest€of€a€secured€party.€€Ð  &p!( Ѐ€€€ò ò(11)ó ó€òò(12)óó€Statutory€LienÐ Ì'#* Ðà  à€€€€€"Statutory€lien"€means€a€lien€on€property€created€by€aÐ x)È$, Ðstatute€providing€for€foreclosure€in€the€manner€specified€for€theÐ $+t&. Ðforeclosure€of€mortgages.€€Ð Ð, (0 ÐÓÓÐ  |.Ì)2 ÐSource:€€This€Rule€is€derived€as€follows:€€Ð ° Ѐ€Section€(a)€is€derived€from€former€Rules€W70€b€and€W79€c.€€Ð †Ö Ѐ€Section€(b)€is€in€part€derived€from€former€Rule€W70€a€and€inÐ \¬ Ðpart€new.€€Ð 2‚ ÐÌÌà@hh#ìàòòREPORTERððS€NOTEóóˆÐ ´  ÐÌà  àThe€2008€legislature€enacted€a€series€of€bills€designed€toÐ ` ° Ðaddress€the€foreclosure€crisis€in€Maryland€by€changing€theÐ 6 †  Ðprocedures€for€foreclosing€on€residential€property.€€The€RulesÐ  \  ÐCommittee€recommends€adding€to€Rule€14„201€the€definition€ofÐ â 2  Ðð ðresidential€propertyðð€that€is€in€section€(a)€of€Code,€RealÐ ¸  ÐProperty€Article,€ðð7„105.1,€the€new€law€added€by€the€legislatureÐ ŽÞ  Ðin€House€Bill€365€(Chapter€2),€Acts€of€2008.Ð d´  ÐÐ  :Š  Ðà@˜ ˜ ìàMARYLAND€RULES€OF€PROCEDUREˆÐ ° ÐÌà@\ \ ìàTITLE€14€„€SALES€OF€PROPERTYˆÐ \¬ ÐÌà@` ` ìàCHAPTER€200€„€FORECLOSURE€OF€LIEN€INSTRUMENTSˆÐ X ÐÌÌà  àAMEND€Rule€14„203€to€add€a€new€subsection€(a)(3)€pertainingÐ Š Ú ÐÌto€the€requirement€to€send€a€notice€of€intent€to€foreclose€aÐ 6 †  ÐÌmortgage€or€deed€of€trust€on€residential€property€and€to€addÐ â 2  ÐÌa€cross€reference€after€subsection€(a)(3),€as€follows:Ð ŽÞ  ÐÌÌRule€14-203.€€CONDITIONS€PRECEDENT;€VENUE€Ð `  ÐÌÌÓÓ€€(a)€€Conditions€PrecedentÐ ’â Ѐ€€€(1)€€GenerallyÐ >Ž Ðà  à€€€€An€action€to€foreclose€a€lien€may€be€filed€after€(A)€theÐ ê: Ðinstrument€creating€or€giving€notice€of€the€existence€of€the€lienÐ –æ Ðhas€been€filed€for€record,€and€(B)€there€has€been€a€default€in€aÐ B’ Ðcondition€upon€which€the€lien€instrument€provides€that€a€sale€mayÐ î> Ðbe€made€or€there€is€a€default€in€the€payment€of€the€debt€securedÐ šê Ðby€a€statutory€lien.€€Ð F –! ÐÓÓCross€reference:€€Code,€Real€Property€Article,€ðððð14-201€throughÐ ò!B# Ð14-206.€€Ð È"$ ÐÌÓÓ€€€€(2)€€Land€Installment€ContractÐ t$Ä& Ðà  à€€€€An€action€to€foreclose€a€land€installment€contract€asÐ  &p!( Ðdefined€in€Code,€Real€Property€Article,€ðð10-101€(b)€shall€beÐ Ì'#* Ðinstituted€only€after€the€secured€party:€(A)€serves€on€the€debtorÐ x)È$, Ðand€the€current€record€owner€of€the€property,€either€by€deliveryÐ $+t&. Ðto€the€person€to€be€served€or€by€certified€mail€to€the€last€knownÐ Ð, (0 Ðaddress€of€the€person€to€be€served,€a€written€notice€stating€theÐ |.Ì)2 Ðamount€of€payment€in€default€and€the€nature€of€any€claimedÐ ° Ðdefault€in€any€other€condition€or€requirement€of€the€contract,Ð \¬ Ðand€advising€the€person€served€that€foreclosure€proceedings€willÐ X Ðbe€instituted€on€or€after€a€designated€day,€not€less€than€30€daysÐ ´  Ðafter€service€of€the€notice,€unless€the€debtor€or€the€currentÐ ` ° Ðrecord€owner€before€that€time€cures€the€default,€and€(B)€filesÐ  \  Ðproof€by€affidavit€that€the€required€notice€has€been€given.Ð ¸  Ѐ€€€òò(3)€€Foreclosure€on€Residential€PropertyóóÐ d´  Ѐ€€€€€òò(A)€€An€action€to€foreclose€on€residential€property€may€notÐ `  Ðbe€filed€until€the€later€of€90€days€after€the€default€or€45€daysÐ ¼  Ðafter€the€sending€of€the€notice€of€intent€to€foreclose€requiredÐ h¸ Ðby€subsection€(a)(3)(B)€of€this€Rule.óóÐ d Ѐ€€€€€òò(B)€€At€least€45€days€before€the€filing€of€an€action€toÐ À Ðforeclose€a€mortgage€or€a€deed€of€trust€on€residential€property,Ð l¼ Ðthe€secured€party€shall€send€a€written€notice€of€intent€toÐ h Ðforeclose€to€the€mortgagor€or€grantor€and€to€the€record€owner€ofÐ Ä Ðthe€property€in€conformance€with€Code,€Real€Property€Article,€Ð pÀ  Ððð7„105.1€(c),€except€that€the€action€may€be€filed€without€sendingÐ !l" Ðthe€notice€if:óó€Ð È"$ Ðà  à€€€òò(i)€the€loan€secured€by€the€mortgage€or€deed€of€trust€wasÐ t$Ä& Ðobtained€by€fraud€or€deception,óó€Ð  &p!( Ðà  à€€€òò(ii)€no€payments€have€ever€been€made€on€the€loan€securedÐ Ì'#* Ðby€the€mortgage€or€deed€of€trust,óó€Ð x)È$, Ðà  à€€€òò(iii)€the€property€subject€to€the€mortgage€or€deed€ofÐ $+t&. Ðtrust€has€been€destroyed,€oróó€Ð Ð, (0 Ðà  à€€€òò(iv)€the€default€occurred€after€a€stay€has€been€lifted€inÐ |.Ì)2 Ða€bankruptcy€hearing.óóÐ ° ÐòòÓÓCross€reference:€For€the€form€of€the€notice€and€any€otherÐ \¬ Ðinformation€that€the€Commissioner€of€Financial€RegulationÐ 2‚ Ðrequires,€see€COMAR€09.03.11.01€òòet€seqóó.óóÐ X ÐÌÓÓ€€(b)€€VenueÐ º  Ðà  à€€An€action€to€foreclose€a€lien€shall€be€filed€in€the€countyÐ f ¶ Ðin€which€all€or€any€part€of€the€property€subject€to€the€lien€isÐ  b  Ðlocated.€€Ð ¾  Ѐ€(c)€€Jurisdiction€-€Attaches€Upon€Commencement€of€ActionÐ jº  Ðà  à€€The€jurisdiction€of€the€court€over€property€subject€to€aÐ f  Ðlien€shall€attach€upon€the€commencement€of€an€action€filedÐ Â Ðpursuant€to€Rule€14-204,€with€or€without€the€bond€described€inÐ n¾ ÐRule€14-206€(a).€€Ð j ÐÓÓSource:€€This€Rule€is€derived€from€former€Rule€W72€and€W79.Ð Æ ÐÌÌà@hh#ìàòòREPORTERððS€NOTEóóˆÐ H˜ ÐÌà  àHouse€Bill€365,€(Chapter€2),€Acts€of€2008,€one€of€the€billsÐ ôD Ðenacted€to€address€the€foreclosure€crisis€in€Maryland,€requiresÐ Ê Ðthat€the€secured€party€send€to€the€mortgagor€or€grantor€and€toÐ  ð Ðthe€record€owner€a€written€notice€of€intent€to€foreclose€aÐ vÆ  Ðmortgage€or€deed€of€trust€on€residential€property.€€This€is€setÐ L œ! Ðout€in€Code,€Real€Property€Article,€ðð7„105.1€(c).€€FourÐ "!r" Ðexceptions€to€this€requirement€are€set€out€in€Code,€Real€PropertyÐ ø!H# ÐArticle,€ðð7„105.1€(b)(2).€€The€Rules€Committee€recommends€addingÐ Î"$ Ðto€the€list€of€conditions€precedent€in€Rule€14„203€a€reference€toÐ ¤#ô% Ðthe€requirement€of€filing€a€notice€of€intent€to€forecloseÐ z$Ê& Ðqualified€by€a€reference€to€the€exceptions€to€the€requirement.Ð P%  ' ÐÐ  &&v!( Ðà@˜ ˜ ìàMARYLAND€RULES€OF€PROCEDUREˆÐ ° ÐÌà@\ \ ìàTITLE€14€„€SALES€OF€PROPERTYˆÐ \¬ ÐÌà@` ` ìàCHAPTER€200€„€FORECLOSURE€OF€LIEN€INSTRUMENTSˆÐ X ÐÌÌà  àAMEND€Rule€14„204€to€add€a€provision€to€section€(a)Ð Š Ú ÐÌstating€that€certain€items€be€included€and€that€certain€itemsÐ 6 †  ÐÌneed€not€be€included€in€the€complaint€to€foreclose€or€order€toÐ â 2  ÐÌdocket,€to€delete€section€(b),€to€add€a€new€section€(b)Ð ŽÞ  ÐÌsetting€out€procedures€for€service€in€foreclosures€on€residentialÐ :Š  ÐÌproperty,€to€add€language€to€section€(c)€that€refers€toÐ æ6 ÐÌresidential€property€foreclosures,€and€to€correct€two€referencesÐ ’â ÐÌto€federal€law,€as€follows:Ð >Ž ÐÌÌRule€14-204.€€COMMENCEMENT€OF€ACTION€AND€PROCESS€Ð À ÐÌÌÓÓ€€(a)€€Methods€of€Commencing€ActionÐ B’ Ðà  à€€An€action€to€foreclose€a€lien€pursuant€to€a€power€of€saleÐ î> Ðshall€be€commenced€by€filing€an€order€to€docket.€€An€action€toÐ šê Ðforeclose€a€lien€pursuant€to€an€assent€to€a€decree€or€where€theÐ F –! Ðlien€instrument€contains€neither€a€power€of€sale€nor€an€assent€toÐ ò!B# Ða€decree€shall€be€commenced€by€filing€a€complaint€to€foreclose.Ð ž#î% ÐWhen€a€lien€instrument€contains€both€a€power€of€sale€and€anÐ J%š ' Ðassent€to€a€decree,€the€lien€may€be€foreclosed€pursuant€to€eitherÐ ö&F") Ðthe€power€of€sale€or€the€assent€to€a€decree.€€The€complaint€orÐ ¢(ò#+ Ðorder€to€docket€shall€be€accompanied€by:€€Ð N*ž%- Ѐ€€€(1)€the€original€or€a€certified€copy€of€the€lien€instrumentÐ ú+J'/ Ðor,€in€an€action€to€foreclose€a€statutory€lien,€an€original€or€aÐ ¦-ö(1 Ðcertified€copy€of€a€notice€of€the€existence€of€the€lien,€€Ð ° Ѐ€€€(2)€a€statement€of€the€debt€remaining€due€and€payableÐ \¬ Ðsupported€by€an€affidavit€of€the€plaintiff€or€the€secured€partyÐ X Ðor€the€agent€or€attorney€of€the€plaintiff€or€the€secured€party,€€Ð ´  Ѐ€€€(3)€in€the€case€of€a€deed€of€trust,€a€copy€of€the€debtÐ ` ° Ðinstrument€certified€by€the€attorney€or€the€trustee€conductingÐ  \  Ðthe€sale,€ò òandó óÐ ¸  Ѐ€€€(4)€if€any€defendant€is€a€natural€person,€an€affidavit€thatÐ d´  Ðeither€the€person€is€not€in€the€military€service€of€the€UnitedÐ `  ÐStates€as€defined€in€ò òSection€511€ofó ó€the€ò òSoldiers'€and€Sailors'Ð ¼  ÐCivil€Relief€Act€of€1940,€as€amended,ó ó€òòServicemembers€Civil€ReliefÐ h¸ ÐAct,óó€50€U.S.C.€ò òAppendix,€520,ó ó€òòapp.€ðððð501€òòet€seqóó.,óó€or€that€theÐ d Ðaction€is€authorized€by€the€Actò ò.ó óòò,€andóó€€Ð Ì Ѐ€€€òò(5)€in€an€action€to€foreclose€a€mortgage€or€deed€of€trust€onÐ xÈ Ðresidential€property,€the€information€and€papers€required€byÐ $t ÐCode,€Real€Property€Article,€ðð7„105.1€(d),€except€that€if€theÐ Ð  Ðname€and€license€number€of€the€mortgage€originator€and€mortgageÐ |Ì  Ðlender€is€not€required€in€the€notice€of€intent€to€foreclose,€theÐ (!x" Ðinformation€is€not€required€in€the€order€to€docket€or€complaintÐ Ô"$$ Ðto€foreclose.óóÐ €$Ð& Ѐ€ò ò(b)€€Notice€to€Record€Owner€of€Residential€Real€Propertyó óÐ ,&|!( Ðà  à€€ò òThe€person€authorized€to€make€a€sale€shall€comply€with€theÐ Ø'(#* Ðnotice€requirement€contained€in€Code,€Real€Property€Article,Ð „)Ô$, Ððð7-105€(a-1)€and,€at€any€time€before€the€sale€is€ratified,€shallÐ 0+€&. Ðfile€an€affidavit€in€the€proceedings€that€the€notice€requirementÐ Ü,,(0 Ðhas€been€satisfied.ó óÐ ˆ.Ø)2 Ѐ€òò(b)€€Service€in€Residential€Property€Foreclosuresóó€€Ð ° Ѐ€€€òò(1)€€Service€by€Personal€DeliveryóóÐ \¬ Ðà  à€€€€òòWhen€an€order€to€docket€or€a€complaint€to€foreclose€aÐ X Ðlien€instrument€or€statutory€lien€on€residential€property€isÐ ´  Ðfiled,€a€copy€of€the€order€to€docket€or€complaint€to€forecloseÐ ` ° Ðand€the€accompanying€papers€shall€be€served€by€personal€deliveryÐ  \  Ðto€the€mortgagor€or€grantor€or€by€leaving€them€with€a€resident€ofÐ ¸  Ðsuitable€age€and€discretion€at€the€dwelling€house€or€usual€placeÐ d´  Ðof€abode€of€the€mortgagor€or€grantor.óóÐ `  Ѐ€€€òò(2)€€Service€by€Mailing€and€PostingóóÐ ¼  Ðà  à€€€€òòIf€on€at€least€two€different€days€a€good€faith€effortÐ h¸ Ðwas€made€to€serve€the€mortgagor€or€grantor€under€subsectionÐ d Ð(b)(1)€of€this€Rule€and€service€was€not€successful,€the€plaintiffÐ À Ðmay€effect€service€by€(A)€mailing€a€copy€of€the€order€to€docketÐ l¼ Ðor€complaint€to€foreclose€and€accompanying€papers€by€certifiedÐ h Ðmail,€return€receipt€requested,€and€first„class€mail€to€the€lastÐ Ä Ðknown€address€of€the€mortgagor€or€grantor€and,€if€different,€toÐ pÀ  Ðthe€address€of€the€residential€property€subject€to€the€mortgageÐ !l" Ðor€deed€of€trust;€and€(B)€posting€a€copy€of€the€order€to€docketÐ È"$ Ðor€complaint€to€foreclose€and€accompanying€papers€in€aÐ t$Ä& Ðconspicuous€place€on€the€residential€property€subject€to€theÐ  &p!( Ðmortgage€or€deed€of€trust.€€Service€is€complete€when€the€propertyÐ Ì'#* Ðhas€been€posted€and€the€mailings€have€been€made€in€accordanceÐ x)È$, Ðwith€this€subsection.óóÐ $+t&. Ѐ€€€òò(3)€€Affidavit€of€ServiceóóÐ Ð, (0 Ѐ€€€€€òò(A)€€Time€for€FilingóóÐ |.Ì)2 Ðà  àà ` à€òòAn€affidavit€of€service€shall€be€filed€promptly€and€inÐ ° Ðany€event€before€the€date€of€the€sale.óóÐ \¬ Ѐ€€€€€òò(B)€€If€Service€by€an€Individual€Other€than€a€SheriffóóÐ X Ðà  à€€€€€€òòIn€addition€to€the€requirements€of€subsectionÐ ´  Ð(b)(3)(C)€or€(D)€of€this€Rule,€if€service€is€made€by€anÐ ` ° Ðindividual€other€than€a€sheriff,€the€affidavit€shall€include€theÐ  \  Ðname,€address,€and€telephone€number€of€the€affiant€and€aÐ ¸  Ðstatement€that€the€affiant€is€18€years€of€age€or€older.óóÐ d´  Ðà  à€òò(C)€€Contents€of€Affidavit€of€Personal€DeliveryóóÐ `  Ðà  à€€€€€€òòIf€service€is€effected€pursuant€to€subsection€(b)(1)Ð ¼  Ðof€this€Rule,€the€affidavit€shall€set€forth€the€name€of€theÐ h¸ Ðperson€served€and€the€date€and€particular€place€of€service.€€IfÐ d Ðdelivery€is€to€a€person€other€than€the€mortgagor€or€grantor,€theÐ À Ðaffidavit€also€shall€include€a€description€of€the€individualÐ l¼ Ðserved€and€the€facts€upon€which€the€individual€making€serviceÐ h Ðconcluded€that€the€individual€served€is€of€suitable€age€andÐ Ä Ðdiscretion.óóÐ pÀ  Ðà  à€òò(D)€€Contents€of€Affidavit€of€Service€by€Mailing€andÐ !l" ÐPostingóóÐ È"$ Ðà  à€€€€€€òòIf€service€is€effected€pursuant€to€subsection€(b)(2)Ð t$Ä& Ðof€this€Rule,€the€affidavit€shall€(i)€describe€with€particularityÐ  &p!( Ðthe€good€faith€efforts€to€serve€the€mortgagor€or€grantor€byÐ Ì'#* Ðpersonal€delivery;€(ii)€state€the€date€on€which€the€requiredÐ x)È$, Ðpapers€were€mailed€by€first„class€and€certified€mail,€returnÐ $+t&. Ðreceipt€requested,€and€the€name€and€address€of€the€addressee;€andÐ Ð, (0 Ð(iii)€include€the€date€of€the€posting€and€a€description€of€theÐ |.Ì)2 Ðlocation€of€the€posting€on€the€property.€€If€available,€theÐ ° Ðoriginal€certified€mail€return€receipt€shall€be€attached€to€theÐ \¬ Ðaffidavit.óóÐ X Ѐ€(c)€€Process€and€Hearing€Not€RequiredÐ ´  Ðà  à€€In€an€action€to€foreclose€a€lien€pursuant€to€a€power€ofÐ ` ° Ðsale€or€pursuant€to€an€order€for€sale€under€an€assent€to€aÐ  \  Ðdecreeòò,€including€a€foreclosure€on€residential€propertyóó,€it€isÐ ¸  Ðnot€necessary€that€process€issue€or€that€a€hearing€be€held€priorÐ d´  Ðto€sale.€€Ð `  ÐÓÓCross€reference:€òòSee€theóó€ò òSections€511€and€532€of€the€Soldiers'Ð ¼  Ðand€Sailors'€Civil€Relief€Act€of€1940ó ó€òòServicemembers€Civil€ReliefÐ ’â ÐActóó,€50€U.S.C.€ò òAppendixó ó€òòapp.€ðððð501€òòet€seqóóóó.€€Ð h¸ ÐÌSource:€€This€Rule€is€derived€òòin€partóó€from€former€Rule€W72€c,€d,Ð j Ðand€e€òòand€is€in€part€newóó.€€Ð ð@ ÐÌÌà@hh#ìàòòREPORTERððS€NOTEóóˆÐ r ÐÌà  àHouse€Bill€365€(Chapter€2),€Acts€of€2008,€sets€out€in€Code,Ð n ÐReal€Property€Article,€ðð7„105.1€(d)€the€procedure€for€filing€anÐ ôD Ðorder€to€docket€or€a€complaint€to€foreclose€a€mortgage€or€deed€ofÐ Ê Ðtrust€on€residential€property.€€The€Rules€Committee€recommendsÐ  ð Ðrepeating€much€of€the€statutory€procedure€in€Rule€Ð vÆ  Ð14„204.Ð L œ! ÐÌà  àThe€Committee€recommends€the€addition€of€subsection€(a)(5)Ð ø!H# Ðbecause€section€(d)€of€Code,€Real€Property€Article,€ðð7„105.1Ð Î"$ Ðrequires€certain€information€and€papers€to€be€filed€with€an€orderÐ ¤#ô% Ðto€docket€or€a€complaint€to€foreclose€a€mortgage€or€deed€of€trustÐ z$Ê& Ðon€residential€property.€€Subsection€(c)(4)€of€the€statuteÐ P%  ' Ðprovides€that€the€notice€of€intent€to€foreclose€required€byÐ &&v!( Ðsubsection€(c)(1)€of€the€statute€to€be€sent€to€the€mortgagor€orÐ ü&L") Ðgrantor€and€the€record€owner€shall€be€in€the€form€that€theÐ Ò'"#* ÐCommissioner€of€Financial€Regulation€prescribes.€€Under€certainÐ ¨(ø#+ Ðcircumstances,€the€name€and€license€number€of€the€mortgageÐ ~)Î$, Ðoriginator€are€not€required€on€the€notice€of€intent€to€foreclose.€Ð T*¤%- ÐThe€Committee€believes€that€if€this€information€is€not€requiredÐ *+z&. Ðon€the€notice,€it€should€not€be€required€on€the€order€to€docketÐ ,P'/ Ðor€complaint€to€foreclose.€€The€Committee€has€added€language€toÐ Ö,&(0 Ðthis€effect€in€subsection€(a)(5).Ð ¬-ü(1 ÐÔ_ÔÐ ‚.Ò)2 Ðà  àThe€Committee€suggests€deleting€existing€section€(b)€becauseÐ ° Ðthe€statute€referenced€there€has€been€superseded€by€Code,€RealÐ †Ö ÐProperty€Article,€ðð7„105.1.Ð \¬ ÐÌà  àCode,€Real€Property€Article,€ðð7„105.1€(e)€sets€outÐ X Ðprocedures€for€serving€a€copy€of€the€order€to€docket€or€complaintÐ Þ. Ðto€foreclose€on€residential€property.€€Section€(b)€of€the€Rule€isÐ ´  Ðadded€to€reflect€these€procedures.Ð Š Ú ÐÌà  àSubsection€(b)(1)€providing€for€service€in€personam€is€takenÐ 6 †  Ðdirectly€from€subsection€(e)(1)€of€the€statute.Ð  \  ÐÌà  àSubsection€(b)(2)€providing€for€service€in€rem€is€takenÐ ¸  Ðdirectly€from€Code,€Real€Property€Article,€ðð7„105.1€(e)(2),Ð ŽÞ  Ðexcept€that€the€last€sentence€was€added€to€indicate€thatÐ d´  Ðcompletion€of€service€is€not€dependent€upon€the€return€of€theÐ :Š  Ðreturn€receipt,€which€shows€that€certified€mail€service€wasÐ `  Ðeffected,€to€the€person€who€requested€the€certified€mail€service.€Ð æ6 ÐThe€affidavit€requirement€of€ðð7„105.1€(e)(2)(Ô_ÔiÔ_Ô)€of€the€statuteÐ ¼  Ðhas€been€incorporated€into€subsection€(b)(3)(D)€of€the€Rule.Ð ’â ÐÌà  àCode,€Real€Property€Article,€ðð7„105.1€(e)(3)€provides€thatÐ >Ž Ðthe€individual€making€service€shall€file€proof€of€service€withÐ d Ðthe€court€in€accordance€with€the€Maryland€Rules.€€The€CommitteeÐ ê: Ðrecommends€the€addition€of€subsection€(b)(3)€to€the€Rule€toÐ À Ðprovide€a€procedure€for€proof€of€service.€€Subsection€(b)(3)(A)Ð –æ Ðis€derived€from€Rule€2„126€(a)€providing€a€time€for€filing€theÐ l¼ Ðaffidavit€of€service.€€Subsection€(b)(3)(B)€is€derived€from€RuleÐ B’ Ð2„126€(a)(2).€€Subsection€(b)(3)(C)€is€derived€from€Rule€2„126Ð h Ð(a)(1).€€Subsection€(b)(3)(D)€is€in€part€derived€from€Code,€RealÐ î> ÐProperty€Article,€ðð7„105.1€(e)(2)(Ô_ÔiÔ_Ô)€and€is€in€part€new.€€ItÐ Ä Ðprovides€a€procedure€for€proving€that€the€requirements€ofÐ šê Ðsubsection€(b)(2)€of€the€Rule€have€been€met.Ð pÀ  ÐÌà  àSection€(c)€contains€language€added€by€the€Committee€to€makeÐ !l" Ðclear€that€it€is€not€necessary€that€process€issue€or€that€aÐ ò!B# Ðhearing€be€held€prior€to€the€sale€when€residential€property€isÐ È"$ Ðbeing€foreclosed€pursuant€to€a€power€of€sale€or€an€order€for€saleÐ ž#î% Ðunder€an€assent€to€a€decree.Ð t$Ä& ÐÌà  àReferences€to€the€former€Soldiersðð€and€Sailorsðð€Civil€ReliefÐ  &p!( ÐAct€of€1940€in€subsection€(a)(4)€of€the€Rule€and€a€crossÐ ö&F") Ðreference€at€the€end€of€the€Rule€are€corrected€to€refer€to€theÐ Ì'#* Ðcurrent€Ô_ÔServicemembersÔ_Ô€Civil€Relief€Act.Ð ¢(ò#+ ÐÐ  x)È$, Ðà@˜ ˜ ìàMARYLAND€RULES€OF€PROCEDUREˆÐ ° ÐÌà@\ \ ìàTITLE€14€„€SALES€OF€PROPERTYˆÐ \¬ ÐÌà@` ` ìàCHAPTER€200€„€FORECLOSURE€OF€LIEN€INSTRUMENTSˆÐ X ÐÌÌà  àAMEND€Rule€14„205€to€require€that€service€in€residentialÐ Š Ú ÐÌproperty€foreclosures€be€in€accordance€with€Rule€14„204€(b)€andÐ 6 †  ÐÌto€delete€section€(b),€as€follows:Ð â 2  ÐÌÌRule€14-205.€€LIEN€INSTRUMENTS€OR€STATUTORY€LIENS€„€CONTAININGÐ d´  ÐÌNEITHER€POWER€OF€SALE€NOR€ASSENT€TO€DECREEÐ `  ÐÌÌÓÓ€€(a)€€Commencement€of€Action€and€ProcessòòóóÐ ’â Ðà  à€€When€a€complaint€to€foreclose€a€lien€instrument€orÐ >Ž Ðstatutory€lien€containing€neither€a€power€of€sale€nor€an€assentÐ ê: Ðto€a€decree€is€filed,€process€shall€issue€and€be€servedò ò,ó ó€and€theÐ –æ Ðaction€shall€proceed€as€in€any€other€civil€actionòò,€except€thatÐ B’ Ðservice€in€residential€property€foreclosures€shall€be€inÐ î> Ðaccordance€with€Rule€14„204€(b)óó.€€Ð šê Ѐ€ò ò(b)€€Notice€to€Record€Owner€of€Residential€Real€Propertyó óÐ F –! Ðà  à€€ò òThe€plaintiff€shall€comply€with€the€notice€requirementÐ ò!B# Ðcontained€in€Code,€Real€Property€Article,€ðð7-105€(a-1)€and,€atÐ ž#î% Ðany€time€before€the€sale€is€ratified,€shall€file€an€affidavit€inÐ J%š ' Ðthe€proceedings€that€the€notice€requirement€has€been€satisfied.ó ó€€Ð ö&F") Ѐ€ò ò(c)ó ó€òò(b)óó€Order€of€Court€Directing€Sale€-€ConditionsÐ ¢(ò#+ Ѐ€€€(1)€€GenerallyÐ N*ž%- Ðà  à€€€€In€an€action€to€foreclose€a€lien€instrument€or€statutoryÐ ú+J'/ Ðlien€containing€neither€a€power€of€sale€nor€an€assent€to€a€Ð  ¦-ö(1 Ðdecree,€the€court€shall€first€determine€whether€a€default€hasÐ ° Ðoccurred.€€If€the€court€finds€that€a€default€has€occurred€itÐ \¬ Ðshall€(A)€fix€the€amount€of€the€debt,€interest,€and€costs€thenÐ X Ðdue€and€(B)€provide€a€reasonable€time€within€which€payment€may€beÐ ´  Ðmade.€€The€court€may€order€that€if€payment€is€not€made€within€theÐ ` ° Ðtime€fixed€in€the€order,€so€much€of€the€property€as€may€beÐ  \  Ðnecessary€to€satisfy€the€amount€due€shall€be€sold.€€Ð ¸  Ѐ€€€(2)€€Order€Directing€Sale€Before€Judgment€in€Exceptional€CaseÐ d´  Ðà  à€€€€If€after€a€hearing€the€court€is€satisfied€that€theÐ `  Ðinterests€of€justice€require€an€immediate€sale€of€the€propertyÐ ¼  Ðthat€is€subject€to€the€lien,€and€that€a€sale€would€be€ordered€asÐ h¸ Ða€result€of€the€final€hearing€of€the€action,€the€court€may€orderÐ d Ða€sale€of€the€property€before€judgment€and€shall€appoint€a€personÐ À Ðto€make€the€sale€pursuant€to€Rule€14-207.€€The€court€shall€orderÐ l¼ Ðthe€proceeds€of€any€sale€before€judgment€to€be€deposited€orÐ h Ðinvested€pending€distribution€pursuant€to€judgment.Ð Ä ÐòòóóÓÓSource:€€This€Rule€is€derived€from€former€Rule€W73.€€Ð pÀ  ÐÌà@hh#ìàòòREPORTERððS€NOTEóóˆÐ !l" ÐÌà  àBecause€Code,€Real€Property€Article,€ðð7„105.1€(e)€providesÐ È"$ Ðservice€procedures€that€are€different€for€foreclosures€ofÐ ž#î% Ðresidential€property€than€for€other€types€of€property€and€newÐ t$Ä& Ðsection€(b)€of€Rule€14„204€sets€forth€those€procedures€in€detail,Ð J%š ' Ðthe€Rules€Committee€recommends€adding€to€Rule€14„205€(a)€theÐ  &p!( Ðrequirement€that€service€in€residential€property€foreclosures€beÐ ö&F") Ðin€accordance€with€Rule€14„204€(b).€€Ð Ì'#* ÐÌà  àThe€Committee€suggests€deleting€section€(b)€of€the€RuleÐ x)È$, Ðbecause€the€statute€to€which€it€refers€has€been€superseded€byÐ N*ž%- ÐCode,€Real€Property€Article,€ðð7„105.1.Ð $+t&. ÐÐ  ú+J'/ Ѐ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€àH\ \ °àMARYLAND€RULES€OF€PROCEDUREˆÐ ° ÐÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€àHP P °àTITLE€2€„€CIVIL€PROCEDURE„„CIRCUIT€COURTˆÐ \¬ ÐÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€àHpp°àCHAPTER€100€„€COMMENCEMENT€OF€ACTION€AND€PROCESSˆÐ X ÐÌÌÌà  àAMEND€Rule€2„122€by€deleting€language€referring€to€postingÐ ` ° ÐÌby€ð ðthe€sheriffðð€from€and€adding€language€referring€to€ð ða€personÐ  \  ÐÌauthorized€to€serve€processðð€to€subsection€(a)(3),€as€follows:Ð ¸  ÐÌÌRule€2-122.€€PROCESS€„€SERVICE€„€IN€REM€OR€QUASI€IN€REM€Ð :Š  ÐÌÌÓÓ€€(a)€€Service€by€Posting€or€PublicationÐ ¼  Ðà  à€€In€an€in€rem€or€quasi€in€rem€action€when€the€plaintiff€hasÐ h¸ Ðshown€by€affidavit€that€the€whereabouts€of€the€defendant€areÐ d Ðunknown€and€that€reasonable€efforts€have€been€made€in€good€faithÐ À Ðto€locate€the€defendant,€the€court€may€order€service€by€theÐ l¼ Ðmailing€of€a€notice€to€the€defendant's€last€known€address€and:€€Ð h Ѐ€€€(1)€by€the€posting€of€the€notice€by€the€sheriff€at€theÐ Ä Ðcourthouse€door€or€on€a€bulletin€board€within€its€immediateÐ pÀ  Ðvicinity,€or€€Ð !l" Ѐ€€€(2)€by€publishing€the€notice€at€least€once€a€week€in€each€ofÐ È"$ Ðthree€successive€weeks€in€one€or€more€newspapers€of€generalÐ t$Ä& Ðcirculation€published€in€the€county€in€which€the€action€isÐ  &p!( Ðpending,€or€€Ð Ì'#* Ѐ€€€(3)€in€an€action€in€which€the€rights€relating€to€landÐ x)È$, Ðincluding€leasehold€interests€are€involved,€by€the€posting€of€theÐ $+t&. Ðnotice€by€ò òthe€sheriffó ó€òòa€person€authorized€to€serve€process€inÐ Ð, (0 Ðaccordance€with€Rule€2„123€(a)óó€in€a€conspicuous€place€on€theÐ |.Ì)2 Ðland.€€Ð ° ÐAdditionally,€the€court€may€order€any€other€means€of€notice€thatÐ \¬ Ðit€deems€appropriate€in€the€circumstancesòòóó.Ð X Ѐ€(b)€€TimeÐ ´  Ðà  à€€The€mailing€and€the€posting€or€publication€shall€beÐ ` ° Ðaccomplished€at€least€30€days€before€the€date€by€which€a€responseÐ  \  Ðto€the€complaint€is€to€be€filed.€€Ð ¸  Ѐ€(c)€€Content€of€NoticeÐ d´  Ðà  à€€The€notice€shall€be€signed€by€the€clerk€and€shall€includeÐ `  Ðthe€caption€of€the€case;€describe€the€substance€of€the€complaintÐ ¼  Ðand€the€relief€sought;€inform€the€defendant€of€the€latest€date€byÐ h¸ Ðwhich€the€response€is€to€be€filed;€warn€the€defendant€thatÐ d Ðfailure€to€file€the€response€within€the€time€allowed€may€resultÐ À Ðin€a€judgment€by€default€or€the€granting€of€the€relief€sought;Ð l¼ Ðand€contain€any€other€information€required€by€the€court.€€Ð h ÐÓÓSource:€€This€Rule€is€derived€as€follows:€€Ð Ä Ѐ€Section€(a)€is€derived€from€former€Rules€105€b€and€111€a.€€Ð šê Ѐ€Section€(b)€is€derived€from€former€Rule€105€b€2.€€Ð pÀ  Ѐ€Section€(c)€is€new€and€replaces€former€Rule€105€b€1€(a).€€Ð F –! ÐÌÌà@hh#ìàòòREPORTERððS€NOTEóóˆÐ È"$ ÐÌà  àThe€Rules€Committee€recommends€adding€to€subsection€(a)(3)€aÐ t$Ä& Ðreference€to€ð ða€person€authorized€to€serve€process€in€accordanceÐ J%š ' Ðwith€Rule€2„123€(a),ðð€which€would€permit€a€competent€privateÐ  &p!( Ðperson,€18€years€of€age€of€older,€including€an€attorney€ofÐ ö&F") Ðrecord,€but€not€a€party€to€the€action,€to€post€the€requiredÐ Ì'#* Ðnotice.€€This€would€make€posting€procedures€more€efficient.€€TheÐ ¢(ò#+ ÐCommittee€recommends€deleting€the€language€referring€to€postingÐ x)È$, Ðby€the€sheriff€in€subsection€(a)(3),€because€the€sheriff€isÐ N*ž%- Ðincluded€in€Rule€2„123€(a)€as€a€ð ðperson€authorized€to€serveÐ $+t&. Ðprocess.ððÐ ú+J'/ Ðà  àà ` àà ¸ àà  àà h àà À àà  àà p àà È àà  àà x àÐ  Ð, (0 ÐSee€appendix,€Ô4‚€a@ ÔÝ‚ÍOÝÔÿÔòòÝ  ÝÔ5  ÔChapter€2,€(HB€365)€in€PDFÔ6fÌÔÝ‚ÍOzÌ ÝóóÔÿÔÝ  ÝÔ76p¨ÌÔ