Rule 14-206. Petition for Immediate Foreclosure Against Residential Property

(a) Right to File. A secured party may file a petition to be excused from the time and notice requirements of Code, Real Property Article, § 7-105.1 (b) and (c) and Rule 14-205 (b) and for leave to file an action for immediate foreclosure of a lien against residential property if:

(1) the debt secured by the lien instrument was obtained by fraud or deception;

(2) no payments have ever been made on the debt;

(3) the property subject to the lien has been destroyed;

(4) the default occurred after all stays have been lifted in a bankruptcy proceeding; or

(5) the property subject to the mortgage or deed of trust is property that is vacant and abandoned as provided under Code, Real Property Article, § 7-105.18.

Committee note: Notice and hearing procedures for filing a petition for leave to immediately commence an action for foreclosure of a lien against vacant and abandoned property are different than the procedures for filing a petition for other expedited foreclosure proceedings. See Code, Real Property Article, § 7-105.18 (b) for the notice and hearing procedures pertaining to vacant and abandoned property and (c) for the criteria required to make a finding that a property is vacant and abandoned.

(b) Contents of Petition. A petition filed under this Rule shall state with particularity the facts alleged in support of the petition and shall be under oath or supported by affidavit.

(c) Notice to Borrower and Record Owner. The secured party shall send by certified and first-class mail a copy of the petition and all papers attached to it to each borrower and record owner of the property at the person's last known address, and, if the person's last known address is not the address of the property, to the person at the address of the property. The mailing shall include a notice that the addressee may file a response to the petition within 10 days after the date of the mailing

mail a copy of the petition and all papers attached to it to each borrower and record owner of the property at the person's last known address, and, if the person's last known address is not the address of the property, to the person at the address of the property. The mailing shall include a notice that the addressee may file a response to the petition within 10 days after the date of the mailing. Promptly after the mailing, the secured party shall file an affidavit that states with particularity how compliance with this section was accomplished, including the date on which the petition was mailed and the names and addresses of the persons to whom it was mailed.

(d) Response.

(1) Procedure. Within 10 days after the mailing pursuant to section (c) of this Rule, a borrower or record owner of the property may file a written response. The response shall state with particularity any defense to the petition and shall be under oath or supported by affidavit. A person who files a response shall serve a copy of the response and any supporting documents on the petitioner by first-class mail, and shall file proof of such service with the response.

Cross reference: See Rules 1-321 (a) and 1-323.

(2) Non-Waiver if No Timely Response Filed. A person's failure to file a timely response to the petition does not waive the person's right to raise any defense in the action to foreclose, including a defense based upon noncompliance with the time or notice requirements of Code, Real Property Article, § 7-105.1 (b) and (c).

(e) Hearing. The court may not grant the petition without a hearing if a response presents a genuine dispute of material fact as to whether the petitioner is entitled to the relief requested. Otherwise, the court may grant or deny the petition without a hearing.

including a defense based upon noncompliance with the time or notice requirements of Code, Real Property Article, § 7-105.1 (b) and (c).

(e) Hearing. The court may not grant the petition without a hearing if a response presents a genuine dispute of material fact as to whether the petitioner is entitled to the relief requested. Otherwise, the court may grant or deny the petition without a hearing.

(f) Filing of Order to Docket or Complaint. An order to docket or complaint to foreclose shall be filed in the same action as the petition.

Committee note: If this Rule applies in an action to foreclose a lien against owner-occupied residential property, the loss mitigation analysis and affidavit requirements of Code, Real Property Article, § 7-105.1 are not applicable and foreclosure mediation under the statute is not available.