Maryland officials pitch HB 59 to limit tax-sale foreclosures and shield homeowners from unpaid utility bills

House Bill 59 would change how Maryland jurisdictions handle tax-sale foreclosures to give struggling homeowners more time and more options to keep their homes, administration and legal services officials told the House Ways and Means Committee on Jan. 28.

The bill would raise the minimum debt threshold for inclusion in a tax sale to $1,000, extend the period before foreclosure proceedings can begin, cap post-sale interest at 10 percent (down from as much as 20 percent in some counties), exclude properties from tax sale when the only liens are unpaid water and sewer bills, and require enhanced notice and outreach — including 90 days’ tenant notice and copies of foreclosure notices sent to the state tax-sale ombudsman.

If enacted, HB 59 would also broaden who qualifies as a “homeowner” for relief programs to include estates, personal representatives and heirs who inherit property, authorize local payment plans for redemption, and require counties to retain tax-sale records for…