On March 15, 2025, Maryland's General Assembly introduced House Bill 769, a legislative proposal aimed at reforming the foreclosure process for owner-occupied residential properties. The bill seeks to amend the Annotated Code of Maryland, specifically targeting the timeline and conditions under which foreclosure actions can be initiated.

The primary purpose of House Bill 769 is to provide additional protections for homeowners facing foreclosure. Key provisions include a stipulation that an action to foreclose on a mortgage or deed of trust cannot be filed until at least 90 days after a default occurs, or 45 days after a notice of intent to foreclose is sent to the homeowner. This extended timeline is designed to give homeowners more time to address their financial difficulties and seek alternatives to foreclosure.

Notably, the bill allows for exceptions where a secured party may petition the circuit court for immediate foreclosure if the mortgage was obtained through fraud or if no payments have ever been made on the loan. This provision aims to balance the interests of lenders with the need to protect homeowners from premature foreclosure actions.

The introduction of House Bill 769 has sparked discussions among lawmakers, housing advocates, and financial institutions. Proponents argue that the bill is a necessary step to prevent unnecessary evictions and to support families during financial hardships. Critics, however, express concerns that the extended timelines could hinder lenders' ability to recover losses and may lead to increased risks in the housing market.

The implications of this bill are significant, as it addresses ongoing issues related to housing stability and financial security for Maryland residents. Experts suggest that if passed, House Bill 769 could serve as a model for other states grappling with similar foreclosure challenges, potentially influencing broader housing policy reforms.

As the legislative process unfolds, stakeholders will be closely monitoring the bill's progress and any amendments that may arise during discussions. The outcome of House Bill 769 could have lasting effects on Maryland's housing landscape and the financial well-being of its residents.