Maryland Renters’ Rights in Landlord Foreclosure

If you rent a home or apartment in Maryland and your landlord is facing foreclosure, it's important to know you still have significant rights. Maryland law and federal regulations offer specific protections to help renters understand what happens during the foreclosure process and what to expect about staying in their homes.

Your Rights and Protections During Foreclosure

When a property you are renting in Maryland goes through foreclosure, there are mandated procedures your landlord and any new owner must follow. These protections exist whether you have a written lease or are renting month-to-month.

• Right to Advance Notice: In most cases, you must receive at least 90 days written notice before eviction after a foreclosure sale is finalized (HUD: Protecting Tenants at Foreclosure Act).
• Honoring Existing Leases: If you have a fixed-term lease (e.g., 12 months) signed before the foreclosure, the new owner usually must honor your lease until its expiration—unless the new owner wants to use the property as their primary residence.
• Month-to-Month Tenants: Even if your lease is month-to-month or oral, you still have the right to a 90-day written notice before you can be asked to move out after foreclosure.
• Withholding Rent: Do not stop paying rent during foreclosure unless a court directs you. This may affect your record and eviction protections.
• Requesting Proof: You may request official proof of the foreclosure and the new ownership using public county land records (Maryland Courts: Housing Help).

Who Handles Foreclosure-Related Tenant Issues?

Foreclosure and related tenancy matters in Maryland are typically handled by the District Court of Maryland's Landlord-Tenant Division.

Notices and Official Forms

When facing foreclosure, tenants may encounter several types of notices and documents. Understanding these forms is essential for protecting your rights.

• Notice to Vacate after Foreclosure (No Official Form Number): This written notice—provided by the new property owner—tells you when you are expected to move out. By law, it must give you at least 90 days to vacate.
  Practical Example: If the building is sold on May 1st, and you get a notice on June 1st, you should not have to leave before August 30th. For legal language and sample letters, see the HUD Sample Tenant Letter.
• Failure to Pay Rent Complaint (DC-CV-082): If rent is unpaid during foreclosure, the new owner/landlord may file this complaint with the court. Learn more and download from the District Court of Maryland.
  How it's used: This form starts an eviction process for unpaid rent, even during foreclosure. Tenants have the right to appear in court and present their case.

Understanding the Maryland Tenancy Laws During Foreclosure

Maryland's landlord-tenant law, found in the Maryland Code, Real Property Title 8 – Landlord and Tenant, provides the framework for notice periods, lease termination, and court proceedings for evictions. Federal law, the Protecting Tenants at Foreclosure Act (PTFA), also requires the 90-day notice for most renters.[1][2]

Steps to Take If Your Landlord Is Facing Foreclosure

• Continue to pay rent as usual until told otherwise by a court or official notice from the new owner.
• Keep copies of your lease, rent receipts, and all notices.
• If you receive a "Notice to Vacate," check the date and confirm it gives you at least 90 days from when received.
• If you are asked to leave before the 90-day period or while your fixed-term lease is active, contact the Maryland District Court Landlord-Tenant Division or legal aid for guidance.
• If you receive a court summons or eviction notice, respond promptly and attend the hearing. You can present evidence and explain your situation.

Being proactive and understanding your documents helps protect your right to stay as long as legally allowed.

Frequently Asked Questions for Maryland Renters in Foreclosure

1. Do I have to move out immediately if my landlord’s property is foreclosed?
   No. In most cases, you are entitled to at least 90 days' written notice, and sometimes longer if you have a valid lease.
2. Does my lease continue after foreclosure?
   If your lease was signed before the foreclosure, it is generally honored until the end of the term unless the new owner will use the property as their main residence.
3. Who collects my rent after foreclosure?
   The new owner (such as a bank or individual buyer) is responsible for collecting rent once foreclosure is complete and they notify you in writing.
4. Who can I call for help if I am forced to leave early?
   You should contact the District Court of Maryland Landlord-Tenant Division or Maryland Legal Aid for immediate assistance and to understand your options.
5. Can I stop paying rent if the property is in foreclosure?
   No. You are required to pay rent as usual during the foreclosure process, unless instructed otherwise by a court.

Key Takeaways

• Maryland renters are protected by both state and federal laws during landlord foreclosure.
• In most cases, you cannot be forced to leave without at least 90 days’ written notice after a foreclosure sale.
• Keep all rental documents and respond quickly to any court notices.

Understanding these protections can help you avoid unnecessary displacement and assert your rights.

Need Help? Resources for Renters

• District Court of Maryland: Landlord-Tenant Information
• Maryland Courts Self-Help Center: Landlord and Tenant
• Maryland Legal Aid
• HUD Maryland Tenant Rights Overview
• Maryland Code, Real Property Title 8: Landlord and Tenant Statutes
• Call Maryland Legal Aid Hotline: 1-800-909-8904 for support.

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1. HUD: Protecting Tenants at Foreclosure Act - FAQ
2. Maryland Code, Real Property Title 8, § 8-402.2

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