Residential Property Statute of Limitations for Deficiency Judgments

Submitted by admin on Thu, 01/27/2022 - 21:35

Effective July 1, 2014, Senate Bill 708 amended Courts and Judicial Proceedings Article, ยง 5-102 and reduced the period of time which a an entity could seek a deficiency judgment against a party who had been foreclosed on in Maryland. Up until then, you could have your home foreclosed on and, after the home was liquidated to cover the amount owed on your note, if the bank did not collect the full amount they were owed, they could come after you at a later date - presumably when you were financially back on your feet. This applies to a deed of trust, a mortgage and a promissory note.

The District of Columbia, Maryland and 39 other states allow deficiency judgments.

Maryland saw a huge spike in foreclosures around 2012 and 2013 and for a time had one of the highest rates of foreclosure in the US.