Maryland Extends Moratorium on Residential Foreclosures

Maryland Commissioner of Financial Regulation Antonio P. Salazar has issued new regulatory guidance advising that the statewide reporting system for new foreclosure notices will remain closed through May 3, 2021. 

The moritorium, originally established by the Governor’s executive order issued April 3, 2020 and continued through subsequent executive orders and regulatory guidance, was set to expire March 31, 2021. While the reporting system is closed, lenders are prohibited from sending a “notice of intent to foreclose” to homeowners. 

“After analyzing multiple factors relating to the COVID-19 pandemic, the decision was made to extend the moratorium by prohibiting the initiation of new foreclosures,” said Commissioner Salazar. “We recognize that conditions in the State are improving. Our Office continues to actively monitor the economic trends within the State, the residential mortgage market, and the status of the virus response by associated governmental and public health authorities to determine if additional guidance will be necessary to minimize the impact of the pandemic on struggling Maryland homeowners.”

You can view the updated guidance here.

Here's where the region stands on residential foreclosures:

DC - Emergency legislation requires mortgage servicers and lenders, for the duration of the public health emergency and for 60 days thereafter, to offer up to 90 days of payment deferral to qualified borrowers who have been affected by the pandemic. Late fees and other penalties accrued during the emergency must be waived. Negative credit reporting is prohibited

Virginia  - A law (House Bill 340) was approved on April 22, 2020 that allows homeowners and housing owners who rent residential property to receive a 30-day pause of foreclosure proceedings if they have experienced a loss of income due to the coronavirus pandemic during the period for which the Governor has declared a state of emergency. This law expires 90 days after the end of the state of emergency.

Delaware - Stays that were previously in place to pause foreclosure proceedings have now been lifted, except in cases in which a continued stay would be in the interest of justice. Court and law enforcement officers and their agents must not act to remove individuals from properties through foreclosure for the duration of the state of emergency unless it would be in the interest of justice; however, a party may be removed from property pursuant to a judgment that was entered before the coronavirus emergency.