Legal Question in Real Estate Law in Maryland

I recently attended a foreclosure auction and was the highest bidder on a piece of property. I gave the auctioneer a deposit and have a "Contract of Sale at Public Auction" I am having trouble finding out what my rights are as well as the next steps. The home is unlocked (it is vacant and has been since earlier this year) so I asked the Substitute Trustee (a law firm) if they are responsible for the care of the house until settlement or if I am? I also asked if I could hire a locksmith to change the locks. The answer I received was that I shouldn't do that but I should get an insurance policy, although he admitted it would be difficult to find a company that would insure it. Do I have the right to change the locks? Who owns the property right now? When does settlement occur? Do I have to file anything with the court? I am at a loss as to how to get these answers so I am hopeful someone on this site will be able to help. Thank you!


Asked on 12/03/15, 10:47 am

1 Answer from Attorneys
Cedulie Laumann Arden Law Firm, LLC

After a foreclosure auction something called a "report of sale" will be filed with the Court. Next, the purchaser waits for the Court to review and approve or "ratify" the sale.

Typically the purchaser would not do anything (change the locks, purchase insurance, etc.) until AFTER the court has ratified the sale. Additionally, if the property is occupied it may be illegal to change the locks, etc., without obtaining a possession order. If a tenant is living in the property they may have rights to continue the lease, or if the defaulting borrower (the prior owner) still lives there you may need to file with the court to get a possession order.

I'd encourage you to seek legal advice from an attorney who can guide you through the particulars but you can keep tabs on what is filed through contacting the court clerk and/or looking at the docket for the underlying foreclosure case. Although not a substitute for legal advice, I hope this general legal information offers some insight.

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Answered on 12/03/15, 11:12 am


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