Rule 14-209.1 - Owner-Occupied Residential Property(a) Applicability. This rule applies to an action to foreclose a lien on residential property that is owner-occupied residential property, or where it is unknown whether the property is owner-occupied residential property at the time the action is filed.(b) Advertising of Sale. A sale may not be advertised until 30 days after a final loss mitigation affidavit is filed, but if a request for foreclosure mediation is filed within that time and not stricken, a sale may not be advertised until the report from the Office of Administrative Hearings is filed with the court.(c) Foreclosure Mediation.(1)Prefile Mediation. A secured party may offer to participate in prefile mediation with a borrower to whom the secured party has delivered a notice of intent to foreclose on owner-occupied residential property. The borrower may elect to participate in the prefile mediation offered. Cross reference: See Code, Real Property Article, § 7-105.1(d) for prefile mediation procedures.
(2)Postfile Mediation.(A) Request; Transmittal (i) Filing of Request. If the borrower has not participated in prefile mediation or the prefile mediation agreement gives the borrower the right to participate in postfile mediation, the borrower may file a request for postfile mediation within the time allowed by Code, Real Property Article, § 7-105.1(j)(1)(ii). The request shall contain the caption of the case and the names and addresses of the parties and shall be accompanied by the postfile mediation filing fee required by Code, Real Property Article, § 7-105.1(j)(1)(iii) or by a written request in accordance with Rule 1-325 for an order waiving or reducing the fee. The borrower shall serve a copy of the request on the other parties. The clerk shall not accept for filing a request for postfile mediation that does not contain a certificate of service or is not accompanied by the required fee or request for an order waiving or reducing the fee. Cross reference: See Rules 1-321 and 1-323. For the Request for Postfile Foreclosure Mediation form prescribed by regulation adopted by the Commissioner of Financial Regulation, see COMAR 09.03.12.05.
(ii) Transmittal of Request. Subject to section (e) of this Rule, the clerk shall transmit notice of the request to the Office of Administrative Hearings no later than five days after the request is filed. Committee note: The transmittal to the Office of Administrative Hearings shall be made within the time required by subsection (c)(2)(A)(ii) of this Rule, regardless of the status of a request for waiver or reduction of the postfile mediation filing fee.
(iii) Ruling on Request for Fee Waiver or Reduction. The court shall rule promptly and may rule ex parte and without a hearing upon a request for an order waiving or reducing the postfile mediation filing fee. If the court does not waive the fee in its entirety, the court shall specify in its order the dollar amount to be paid and the time, not to exceed ten days, within which payment shall be made. The order shall direct the clerk to strike the request for postfile mediation if payment is not made within the time allowed and, if the request is stricken, to promptly notify the Office of Administrative Hearings that the request for foreclosure mediation has been stricken.(B) Motion to Strike Request for Postfile Mediation. No later than 15 days after service of a request for postfile mediation, the secured party may file a motion to strike the request. The motion shall be accompanied by an affidavit that sets forth with particularity reasons sufficient to overcome the presumption that the borrower is entitled to postfile mediation and the reasons postfile mediation is not appropriate.(C) Response to Motion to Strike. No later than 15 days after service of the motion to strike, the borrower may file a response to the motion.(D) Ruling on Motion. After expiration of the time for filing a response, the court shall rule on the motion, with or without a hearing. If the court grants the motion, the clerk shall notify the Office of Administrative Hearings that the motion has been granted.(d) Notification From Office of Administrative Hearings.(1)If Extension Granted. If the Office of Administrative Hearings extends the time for completing postfile mediation pursuant to Code, Real Property Article, § 7-105.1(k)(2)(ii), it shall notify the court no later than 67 days after the court transmitted the request for postfile mediation and specify the date by which mediation shall be completed. If the Office of Administrative Hearings extends the time for completing postfile mediation more than once, it shall notify the court of each extension and specify the new date by which mediation shall be completed.(2)Outcome of Postfile Mediation. Within the time allowed by Code, Real Property Article, § 7-105.1(l)(4), the Office of Administrative Hearings shall file with the court a report that states (A) whether the postfile mediation was held and, if not, the reasons why it was not held, or (B) the outcome of the foreclosure mediation. The Office of Administrative Hearings promptly shall provide a copy of the report to each party to the postfile mediation.(e) Electronic Transmittals. By agreement between the Administrative Office of the Courts and the Office of Administrative Hearings, notifications required by this Rule may be transmitted by electronic means rather than by mail and by a department of the Administrative Office of the Courts rather than by the clerk, provided that an appropriate docket entry is made of the transmittal or the receipt of the notification.(f) Procedure Following Postfile Mediation.(1)If Agreement Results From Foreclosure Mediation. If the postfile mediation results in an agreement, the court shall take any reasonable action reasonably necessary to implement the agreement.(2)If No Agreement. If the postfile mediation does not result in an agreement, the secured party may advertise the sale, subject to the right of the borrower to file a motion pursuant to Rule 14-211 to stay the sale and dismiss the action.(3)If Postfile Mediation Fails Due to the Fault of a Party.(A) If the postfile mediation is not held or is terminated because the secured party failed to attend or failed to provide the documents required by regulation of the Commissioner of Financial Regulation, the court, after an opportunity for a hearing, may dismiss the action.(B) If the postfile mediation is not held or is terminated because the borrower failed to attend or failed to provide the documents required by regulation of the Commissioner of Financial Regulation, the secured party may advertise the sale.Md. R. Prop. Sales 14-209.1
Adopted June 7, 2010, eff. 7/1/2010. Amended October 11, 2011, eff. 11/1/2011; 3/11/2013, eff. 5/1/2013.HISTORICAL NOTES
2011 Orders
The October 11, 2011, order, in section (b), substituted "30 days for "the 20 days; and rewrote section (d)(1), which prior thereto read:
"(1) If Extension Granted. If the Office of Administrative Hearings extends the time for completing foreclosure mediation pursuant to Code, Real Property Article, § 7-105.1(i)(2)(ii), it shall notify the court no later than 65 days after the court transmitted the request for foreclosure mediation.
2013 Orders
The May 1, 2013, order, amended the Rule to change the term "foreclosure mediation to the term "postfile mediation; to correct internal references; to add a new subsection (c)(1) pertaining to prefile mediation; to modify new subsection (c)(2); and to make stylistic changes.