In the Rules in this Chapter, the following definitions apply except as expressly otherwise provided or as necessary implication requires:
(a) Assent to a Decree. "Assent to a decree means a provision in a lien instrument assenting, in the event of a specified default, to the entry of an order for the sale of the property subject to the lien.(b)Borrower. "Borrower means: (2) a grantor of a deed of trust;(3) any person liable for the debt secured by the lien;(4) a maker of a note secured by an indemnity deed of trust;(5) a purchaser under a land installment contract; and(6) a person whose property is subject to a lien under Code, Real Property Article, Title 14, Subtitle 2 (Maryland Contract Lien Act).(c) Certificate of Property Unfit for Human Habitation. "Certificate of property unfit for human habitation means (1) in Baltimore City, a certificate of substantial repair, or (2) a certificate for residential property issued by a unit of a county or municipal corporation indicating that the county or municipal corporation has determined that the residential property is unfit for human habitation.(d) Certificate of Vacancy. "Certificate of vacancy means a certificate issued by a unit of a county or municipal corporation for residential property indicating that the residential property is vacant.(e) Debt. "Debt means a monetary obligation secured by a lien.(f) Final Loss Mitigation Affidavit. "Final loss mitigation affidavit means an affidavit substantially in the form prescribed by regulation adopted by the Commissioner of Financial Regulation that:(1) is made by a person authorized to act on behalf of a secured party to a mortgage or deed of trust on residential property that is the subject of a foreclosure action;(2) certifies the completion of the final determination of loss mitigation analysis in connection with the mortgage or deed of trust or states why no loss mitigation analysis is required; and(3) if a loan modification or other loss mitigation was denied, provides an explanation for the denial. Committee note: The Committee believes that a final loss mitigation affidavit should be filed in every action seeking foreclosure of a lien on residential property, whether or not the property is owner-occupied. If the affiant has determined that the property is not owner-occupied residential property and, therefore, no loss mitigation analysis is required, the affiant should so state. See Rule 14-207(b)(7). The definition set forth in Code, Real Property Article, § 7-105.1 is supplemented to include this requirement, and it is clarified to include the requirement that the form of affidavit be substantially in the form prescribed by regulation adopted by the Commissioner of Financial Regulation. Other modifications to the definition are stylistic only.
If the property is owner-occupied residential property but the secured party, such as an individual purchase-money mortgagee, is not required to provide or participate in a loss mitigation program, the affiant should so state as an explanation for the denial of a loan modification or other loss mitigation.
Cross reference: See Chapter 485, Laws of 2010 (HB 472 ), Section 4(3)(i) for the form of Final Loss Mitigation Affidavit required prior to the adoption of regulations by the Commissioner of Financial Regulation.
(g) Foreclosure Mediation.(1) Generally. "Foreclosure mediation means a conference at which the parties in a foreclosure action, their attorneys, additional representatives of the parties, or a combination of those persons appear before an impartial individual to discuss the positions of the parties in an attempt to reach agreement on a loss mitigation program for the mortgagor or grantor.
Committee note: This is the definition stated in Code, Real Property Article, § 7-105.1(a)(4). Code, Real Property Article, §§ 7-105.1(d), (k), (l), (m), and (n) require that the foreclosure mediation be conducted by the Office of Administrative Hearings.
(2) Prefile Mediation. "Prefile mediation means foreclosure mediation that occurs in accordance with Code, Real Property Article, § 7-105.1(d) before the date on which the order to docket or complaint to foreclose is filed.
(3) Postfile Mediation. "Postfile mediation means foreclosure mediation that occurs in accordance with Code, Real Property Article, § 7-105.1(j) after the date on which the order to docket or complaint to foreclose is filed.
(h) Lien. "Lien means a statutory lien or a lien upon property created or authorized to be created by a lien instrument.(i) Lien Instrument."Lien instrument means any instrument creating or authorizing the creation of a lien on property, including:
(3) a land installment contract, as defined in Code, Real Property Article, § 10-101(c);(4) a contract creating a lien pursuant to Code, Real Property Article, Title 14, Subtitle 2;(5) a deed or other instrument reserving a vendor's lien; or(6) an instrument creating or authorizing the creation of a lien in favor of a homeowners' association, a condominium council of unit owners, a property owners' association, or a community association.(j) Loss Mitigation Analysis. "Loss mitigation analysis means an evaluation of the facts and circumstances of a loan secured by owner-occupied residential property to determine: (1) whether a mortgagor or grantor qualifies for a loan modification; and(2) if there will be no loan modification, whether any other loss mitigation program may be made available to the mortgagor or grantor.(k) Loss Mitigation Program. "Loss mitigation program means an option in connection with a loan secured by owner-occupied residential property that: (1) avoids foreclosure through a loan modification or other changes to existing loan terms that are intended to allow the mortgagor or grantor to stay in the property;(2) avoids foreclosure through a short sale, deed in lieu of foreclosure, or other alternative that is intended to simplify the relinquishment of ownership of the property by the mortgagor or grantor; or(3) lessens the harmful impact of foreclosure on the mortgagor or grantor.(l) Owner-Occupied Residential Property. "Owner-occupied residential property means residential property in which at least one unit is occupied by an individual who has an ownership interest in the property and uses the property as the individual's primary residence.(m) Power of Sale. "Power of sale means a provision in a lien instrument authorizing, in the event of a specified default, a sale of the property subject to the lien.(n) Preliminary Loss Mitigation Affidavit. "Preliminary loss mitigation affidavit means an affidavit substantially in the form prescribed by regulation adopted by the Commissioner of Financial Regulation that:(1) is made by a person authorized to act on behalf of a secured party to a mortgage or deed of trust on owner-occupied residential property that is the subject of a foreclosure action;(2) certifies the status of an incomplete loss mitigation analysis in connection with the mortgage or deed of trust; and(3) includes reasons why the loss mitigation analysis is incomplete. Cross reference: See Chapter 485, Laws of 2010 (HB 472 ), Section 4(3)(ii) for the form of Preliminary Loss Mitigation Affidavit required prior to the adoption of regulations by the Commissioner of Financial Regulation.
(o) Property. "Property means real and personal property of any kind located in this State, including a condominium unit and a time share unit.(p) Record Owner. "Record owner of property means a person who as of 30 days before the date of providing a required notice holds record title to the property or is the record holder of the rights of a purchaser under a land installment contract.(q) Residential Property. "Residential property means real property with four or fewer single family dwelling units that are designed principally and are intended for human habitation. It includes an individual residential condominium unit within a larger structure or complex, regardless of the total number of individual units in that structure or complex. "Residential property does not include a time share unit. Cross reference: See Code, Real Property Article § 7-105.1(a).
(r) Sale. "Sale means a foreclosure sale.(s) Secured Party. "Secured party means any person who has an interest in property secured by a lien or any assignee or successor in interest to that person. The term includes: (2) the holder of a note secured by a deed of trust or indemnity deed of trust;(3) a vendor under a land installment contract or holding a vendor's lien;(4) a person holding a lien under Code, Real Property Article, Title 14, Subtitle 2;(5) a condominium council of unit owners;(6) a homeowners' association; and(7) a property owners' or community association. The term does not include a secured party under Code, Commercial Law Article, § 9-102(a)(74).
(t) Statutory Lien."Statutory lien" means a lien on property created by a statute providing for foreclosure in the manner specified for the foreclosure of mortgages.
Md. R. Prop. Sales 14-202
This Rule is derived in part from the 2008 version of former Rule 14-201(b) and is in part new.
Adopted Feb. 10, 2009 eff. 5/1/2009. Amended June 16, 2009, eff. 6/17/2009; 6/7/2010, eff. 7/1/2010; 3/11/2013, eff. 5/1/2013; amended June 29, 2020, eff. 8/1/2020.HISTORICAL NOTES
2010 Orders
The June 7, 2010, order added definitions for "final loss mitigation affidavit, "foreclosure mediation, "loss mitigation analysis, "Loss Mitigation Program, "owner-occupied residential property, and "preliminary loss mitigation affidavit.
2013 Orders
The March 11, 2013, order added certain definitions, corrected internal references, and made stylistic changes.
Prior Rules:
Rule 14-202, adopted June 5, 1996, effective January 1, 1997, related to the parties involved in foreclosures on real property, rescinded February 10, 2009, effective May 1, 2009. See Md. Rule 14-204.
Committee note: Liens created pursuant to Code, Real Property Article, Title 14, Subtitle 2 (Maryland Contract Lien Act) are to be foreclosed "in the same manner, and subject to the same requirements, as the foreclosure of mortgages or deeds of trust." See Code, Real Property Article, § 14-204(a).