Maryland Senate Bill SB904

Maryland 2023 Regular Session

• Introduced: 2/15/23
• Refer: 2/15/23
• Refer: 3/14/23

Caption

Foreclosure Proceedings - Residential Mortgagors and Grantors - Access to Counsel

Impact

The bill creates the 'Access to Counsel in Foreclosure Proceedings Program,' administered by the Maryland Legal Services Corporation (MLSC). It requires MLSC to develop informational materials and designate community groups responsible for outreach and education to affected individuals. Moreover, a special fund is established to facilitate this initiative, which will be funded by fees collected from residential property sales. This fund is meant to support legal services aimed at ensuring that individuals facing foreclosure have access to quality legal representation.

Summary

Senate Bill 904, titled 'Foreclosure Proceedings - Residential Mortgagors and Grantors - Access to Counsel,' establishes a framework for providing legal representation to certain individuals involved in foreclosure proceedings in Maryland. The bill specifically targets mortgagors and grantors—homeowners who occupy their property as their primary residence—whose household income is no greater than 50% of the median state income. The bill aims to mitigate the barriers faced by these vulnerable individuals during foreclosure, ensuring they can access legal counsel and support when facing potential loss of their homes.

Contention

While the bill has clear benefits in terms of providing legal help to low-income homeowners, it has sparked some points of contention among stakeholders. Critics may argue about the feasibility and effectiveness of implementing such a program, given the potential demand for legal services that could exceed funding capabilities. There may also be concerns regarding the dependency on local jurisdictions to enact laws aligned with the state-level provisions, potentially leading to disparities in access to legal representation based on local resource availability or commitment to funding these services.