Real Property - Expedited Wrongful Detainer Proceedings - Property for Sale or Lease
HB0059 revises Maryland’s tax sale laws to give additional protections to owner-occupied residential property and to property occupied by an heir of a deceased owner. The bill requires collectors to withhold certain properties from tax sale, including low-balance owner-occupied homes, some properties with only water and sewer liens, and, in some cases, redevelopment-designated property. It also requires counties to create a registry for interested parties or allow the Tax Sale Ombudsman to designate property to be withheld, with SDAT assistance available on request.
The bill also changes redemption and foreclosure timelines and costs for owner-occupied property. It caps the redemption rate for owner-occupied residential property at 10% annually, prevents post-sale taxes, interest, and penalties from being added to the redemption amount for that category, delays when foreclosure complaints and notices may be filed or sent, and extends reimbursement timing for certificate holders. It further expands notice requirements to include the State Tax Sale Ombudsman in owner-occupied foreclosure cases, lengthens tenant notice and possession timelines after foreclosure, and updates rules for abandoned-property sales, water and sewer lien sales, annual tax sale reporting, and the Homeowner Protection Program.
The bill amends multiple sections of the Tax-Property Article, broadening county and municipal authority and obligations in tax sale administration while creating new statewide protections for vulnerable homeowners and heirs. It changes who may be withheld from sale, how redemption amounts are calculated, when foreclosure actions may begin, what notices must be sent, and how abandoned-property and water/sewer lien sales are handled. It also requires counties to retain annual tax sale survey records for at least three years and expands the statutory definition of “homeowner” for the Homeowner Protection Program to include certain heirs and estates of deceased homeowners.
The bill appears generally supportive of homeowner retention and consumer protection in the tax sale process, with a clear policy focus on preventing loss of homes by owner-occupants and heirs. The changes are structured to reduce the speed and financial pressure of tax foreclosure for those properties while preserving tax collection tools for local governments. No vote record or committee transcript was provided, so the available context does not show recorded opposition or support beyond the bill’s protective orientation.
The main points of tension are likely to be between homeowner advocates and tax-sale purchasers or local governments. Supporters would favor the added redemption time, notice requirements, and limits on post-sale charges for owner-occupied homes and heirs, while opponents may argue that the bill reduces the efficiency of tax collection, delays foreclosure, and increases administrative burdens on counties and municipalities. The new registry requirement, Ombudsman involvement, and expanded notice obligations may also be viewed as operationally burdensome by local tax collectors and certificate holders.