Last page edit 12/17/07

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Foreclosure of the Property

The courts have held that where the tenancy began after the mortgage was recorded, the tenant has no right of possession against the purchaser at the foreclosure sale.  To evict a tenant in possession, the purchaser should request the court to issue a Writ of Possession.  The tenant must be served with notice of the purchaser's motion for the Writ and must be given time to respond.  This ensures at the least that tenant will know that he may be required to leave.

However, if the purchaser accepts rent from the tenant, a tenancy is established.  The tenant is now entitled to proper notice to vacate.

Where the lease predates the mortgage, a foreclosure sale will generally not end the lease.

The Maryland Code provides that the purchaser at a mortgage foreclosure sale has the same rights and remedies against the tenants of the mortgagor (tenants' original landlord) as the mortgagor had, and the tenants have the same rights and remedies against the purchaser as they had against their original landlord on the day the mortgage was recorded.  (Maryland Code, Real Property, Section 7-106)

Last date legally reviewed: April, 2001 - BNI

Source: Baltimore Neighborhoods (BNI) - See main Landlord Tenant section for more information on BNI.

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