Maryland, Alabama, and Connecticut are the only three states in the country that do not have a statute of limitations for foreclosures. Statutes of limitations establishes the time limit for bringing a foreclosure action. Essentially, it means that if a homeowner misses mortgage payments, a foreclosure action must begin before the time runs out. This provides clarity for the homeowner and ensures that mortgage servicers have an incentive to work with homeowners to refinance the mortgage to a more affordable payment or begin foreclosure proceedings in a timely fashion.

Forty-seven states already do this which means that mortgages lenders and servicers all have to abide by different timelines in the 47 states that already have statutes of limitations.

HB769 establishes a 10 year statute of limitations for foreclosures in Maryland which would bring us in line with surrounding states including Virginia (10 years); West Virginia (5 years), and New Jersey (6 years). The bill also puts zombie mortgages to bed by requiring clear documentation of the loan that must be submitted when the debt buyer initiates a zombie foreclosure. HB769 passed out of the House and is now in Senate Judicial Proceedings. Monday marks the last day of the legislative session, we need to let legislators know that this bill should be a priority. The clock is ticking and we need YOUR help to get HB769 on the vote list in Senate JPR and to vote the bill out with no weakening amendments.

Please contact your legislators and help us protect homeowners and put zombie mortgages back in the ground!