Judicial In Rem Tax Foreclosure - Notice Requirements
Summary
HB1110 changes the notice procedure for judicial in rem tax foreclosure actions brought by counties or municipal corporations against certain vacant and abandoned properties. Under current law, the local government had to send notice and a copy of the complaint to each interested party by first-class and certified mail within five days after filing. The bill replaces that mailing requirement with service of the complaint on each interested party in accordance with the Maryland Rules.
The bill continues to allow a county or municipal corporation to file an in rem foreclosure only after the property tax has been delinquent for at least six months and the appeal period for a vacant-and-unsafe or unfit designation has expired. It also preserves the existing framework that includes all delinquent taxes in the action, allows amendment to add later-delinquent taxes, and permits interested parties to cure the delinquency by paying all past due amounts before judgment is entered. Once judgment is entered, the right to cure ends and the property’s interests are foreclosed and transferred to the local government.
Impact
HB1110 amends Section 14-875 of the Tax-Property Article in the Maryland Code, narrowing the statute’s specific notice language and substituting a general service requirement under the Maryland Rules. The practical effect is to change how counties and municipalities must notify interested parties in judicial in rem tax foreclosure cases involving vacant and abandoned property, while leaving the substantive foreclosure eligibility rules and cure rights largely intact.
Sentiment
The bill appears to have been noncontroversial and broadly supported. It received favorable committee treatment in the House, passed the House 128-0, and passed the Senate 33-0, indicating unanimous support in both chambers. The available record shows no committee transcript debate, suggesting limited public contention or that any concerns were resolved before floor votes.
Contention
No specific points of contention are reflected in the available record. The only apparent policy issue is the shift from a detailed statutory mailing requirement to service under the Maryland Rules, which could affect how notice is executed and litigated in foreclosure cases. Any concern would likely come from property owners, lienholders, or local governments focused on due process, administrative burden, or consistency in service procedures, but no opposition is documented in the provided materials.