By Evan McKenzie  — June 2, 2013

A new bill limiting foreclosures and attorney fees passed the Senate 46-0 (SB 161) and the House 134-4 (HB 286) and has been signed by the Governor. The law will be effective October 1, 2013. Basically, HB 286 and SB 161 are identical consumer protection bills whose purpose is to: 1. Stop the financial abuse of Maryland HOA and condo owners when attorneys advise boards to run up legal fees over trivial matters and then pass those fees onto targeted HOA and condo owners. 2. Prohibit foreclosure on any property based merely on fines and/or legal fees. The new law is a partial response to recent association scandals, such as a Maryland condominium association that ran up attorney fees of $200,000 to fight a condo owner’s lawsuit involving $225 or the homeowner who was asked to pay $50,000 in attorney fees and fines for not getting proper approval for a new driveway that others in the community already had in place.  Read more: