Maryland Lawmakers Move To Cap Legal Fees, Increase Debt Threshold In Tax Sales

In Maryland, The Baltimore Sun reports:

• In an effort to spare some homeowners the loss of their properties in municipal tax sales, lawmakers are proposing several reform measures. State Sen. George W. Della Jr. has introduced legislation to cap legal fees at the end of the court process and to improve notification. The Baltimore Democrat says he hopes to cut expenses and save homes.

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• The proposed law would cap attorney fees at $500 until a suit to foreclose the right of redemption is filed. Then "reasonable attorney fees" may be sought, not to exceed $1,000. State Sen. Richard Madaleno [...] has proposed a bill to raise the debt threshold for properties sent to tax sale from $100 to $500. [...] Del. Maggie L. McIntosh [...] said that she expects to take up legislation to lengthen the amount of time before a foreclosure results from a tax sale once notice is given, and possibly on changes to the way the city bills its residents. "We want to make sure that the city does everything it can to avert a resident from losing a home due to a water bill," McIntosh said.

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• Baltimore lawyer Jay A. Dackman, who has been among the city's active lawyers in tax-sale cases, said he would welcome greater control of fees. "The law the way it's currently drafted is too open-ended," he said. "It creates abuse in terms of excessive fees being charged by attorneys."

A recent Baltimore Sun investigation showed that at least 400 homes were lost in a recent three-year period by Baltimore homeowners for debts other than property taxes, and that half were for unpaid municipal charges of $500 or less, many of which included unpaid city water bills.

For more, see Lawmakers propose reforms to state tax-sale regulations (Bills would cap attorney fees, raise debt threshold for action). bidding