Prohibition on Acquiring Mortgages or Deeds of Trust by Condemnation and Related Study: Summary of Bill Passed by 2014 Maryland General Assembly

J. Paul Rieger, Jr. of First American Title Insurance Company has provided a Summary of Select Legislation Passed by the 2014 Maryland General Assembly that is available on the Real Property Section’s web site under “Section Documents.” His summary of Chapter 561 (SB 850) amending Real Prop. Art. 12-101 is below:

In response to Richmond, California’s approach of utilizing eminent domain to condemn and buy underwater mortgages, this bill prohibits the State or any of its instrumentalities or political subdivisions from acquiring mortgages or deeds of trust by condemnation from June 1, 2014 to May 30, 2016, inclusive. The bill also instructs the Department of Housing and Community Development, on or before November 1, 2015, to conduct a study of methods, including the use of eminent domain by local governments, for restoring equity to homeowners whose mortgages have been securitized and who have been unable to obtain mortgage loan modifications that would allow the homeowners to keep their homes.

Effective June 1, 2014.

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