Legal Question in Landlord & Tenant Law in Maryland

I would strongly recommend that you consult with a Maryland real estate litigator to discuss your case. You need an attorney to review your agreement with the property manager to make sure you will not be hit with huge fines, penalties, etc., for breaching the contract.

I assume that paying the mortgage is the property manager's obligation and you provided the property manager with sufficient funds such that the company could make the payments? If so, you have already suffered damages through the property management company's negligence in failing to pay the mortgage Of course, you should stop making mortgage payments through the property manager and do so directly (or through a new property manager you can trust). You should also make sure that any principal, interest, penalties, fees, etc., charged by mortgage lender because of the late payments have been paid in full. Keep track of how much money in penalties, late fees and interest you had to pay because of the property manager's blunder. If you have any cash deposited with the property manager, I will demand its return, in writing. I would not deposit any additional funds with them. I would make sure that any automatic credit card accounts/permissions are changed. If your rental property has employees that you are responsible for paying, you may want to check with your payroll company to ensure that tax with-holdings are up to date and the employees have been getting paid. Check that your real estate taxes are up-to-date. Also, check to make sure that all of your insurance premiums (property, casualty, etc.) are up to date. It sounds like the property manager may be robbing Peter to pay Paul.

Best of luck.****The above is for informational purposes only and does not create an attorney-client privilege.******