Deficiency judgments allow lenders to pursue unsecured money judgments against borrowers in default where the proceeds of a sale of the collateral is insufficient to cover the original loan. For those facing deficiency judgments, Maryland's laws allow deficiency judgments in cases of default in various sales of goods including motor vehicles. Additionally, deficiency judgments are allowed to cover foreclosure deficiencies on properties subject to a lien. Plaintiffs must give proper notice to the defendant regarding any money judgment hearings.
Current Laws
§ 8-325. Deficiency judgment; hearing; exemptions
(a) Deficiency judgment.- If the amount received from a sale of goods under distress, after payment of all costs and expenses, is not sufficient to pay the plaintiff's claim, the plaintiff may file a verified petition with the court for a deficiency money judgment. Notice of the petition shall be served on the tenant, giving at least 14 days' notice of hearing on the petition. After the hearing, the court may order a money judgment entered for the deficiency against the defendant regardless of whether the amount exceeds the monetary limit of the civil jurisdiction of the court.
§ 14-204. Enforcement and foreclosure of lien
(b) Suits for deficiency and unpaid damages. - If the owner of property subject to a lien is personally liable for alleged damages, suit for any deficiency following foreclosure may be maintained in the same proceeding, and suit for a monetary judgment for unpaid damages may be maintained without waiving any lien securing the same
§ 14-2009. Same - Sale
(a) Applicability of section. - This section applies if the lease provides that the motor vehicle is to be sold after repossession and the lessee is to be responsible for any deficiency arising from the sale of the motor vehicle.
(b) Private sale or public auction; notice to lessee; commercially reasonable sale
§ 11A-110. Expenses - (e) Liens
(ii) As to a time-share estate, assessments, interest, late charges, costs of collection, and reasonable attorney's fees may be enforced by the imposition of a lien under the Maryland Contract Lien Act. Liens may be enforced and foreclosed in a separate proceeding against an individual time-share estate or enforced and foreclosed in a single proceeding against some or all time-share estates in the same project whose owners are in arrears in payment of assessments. Enforcement and foreclosure of a number of liens under a single proceeding does not alter the individual rights of an owner, including the right to receive any surplus from the sale that the owner would be entitled to receive under a separate proceeding against an individual time-share estate, or the rights of the person enforcing the liens. Suit for any deficiency following foreclosure may be maintained in the same proceeding, and suit for any money judgment for unpaid assessments may also be maintained in the same proceeding without waiving the right to seek a lien under the Maryland Contract Lien Act.
§ 12-115. Repossession of goods securing loan
(e) Notice after repossession.
Within 5 days after he repossesses the goods, the lender shall deliver to the borrower personally or send to him at his last known address by registered or certified mail, a written notice which briefly states (2) The rights of the borrower as to a resale, and his liability for a deficiency.
Talk with an Attorney
If you face a deficiency judgment in Maryland, you are due proper notice, even after repossession. Sometimes foreclosure hearings on properties and liens are held in the same proceeding addressing any deficiencies. To protect your interests, talk with an experienced attorney to discuss the details of your case.
