Legal Question in Real Estate Law in Maryland

in the state of MD, if a person walks away from his home, and the bank later sent out a notice that they are going to be sale it on aution, does that mean that the bank has taken ownership of the home and has the right to sale it. If the home is put on aution and sold in May 2008, and property taxes are due in July who is responsabie for the proerty taxes? What if the person who buy's the home on aution can't come up with the money, who pay's the taxes?


Asked on 6/18/12, 10:07 am

1 Answer from Attorneys
Robert Sher Wagshal and Sher

The bank's right to conduct an auction sale of your house is known as a foreclosure. This right was given to them when you signed your mortgage or deed of trust at the time you took out the loan and went to settlement. At the foreclosure, the property is sold for a sufficient amount to pay off the mortgage, any outstanding taxes and the costs of the foreclosure. Usually the lender/bank itself is the high bidder and when the sale is ratified in court, they become the owner of the property. If someone else is the high bidder they have a limited amount of time to come up with the money or they lose their deposit. The taxes are a lien on the property, so anyone who wants to own it has to pay them.

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Answered on 6/18/12, 11:51 am


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