Empire Properties, LLC v. Hardy, 386 Md. 628

Summary

The Maryland Court of Appeals held that a purchaser at a ratified foreclosure sale seeking judicial possession from holdover mortgagors must proceed under Maryland Rule 14-102(a) in the circuit court, rather than through a wrongful detainer action in the District Court under Real Property § 8-402.4. The court further held that complete equitable title generally vests in the purchaser upon ratification of the foreclosure sale, potentially entitling the purchaser to possession before payment of the purchase price and delivery of the deed.

Holdings

1. When a purchaser at an unaudited foreclosure sale has not paid the purchase price and does not yet hold legal title, the purchaser must seek possession through a motion under Maryland Rule 14-102(a) in the Circuit Court; the purchaser may not use Maryland Real Property Article § 8-402.4 in the District Court to obtain possession from a holdover mortgagor under these circumstances.
2. Generally, once a foreclosure sale is ratified by the circuit court, complete equitable title vests in the purchaser, and the purchaser may then be entitled to seek possession through the circuit court's discretionary possession procedure, even though legal title does not pass until the purchase price and other terms of sale are satisfied and a deed is delivered.

Questions Presented

1. Whether a purchaser of property at a ratified foreclosure sale may obtain possession from holdover mortgagors through a wrongful-detainer or forcible-entry-and-detainer action in the District Court under Maryland Real Property Article § 8-402.4.
2. Whether a foreclosure-sale purchaser is entitled to possession after ratification of the sale but before payment of the purchase price and delivery of a trustee's deed.

Disposition

affirmed