In a previous blog, we discussed all of the changes to residential foreclosures that have occurred over the last seven or eight years for residential foreclosures in Maryland. However, most of these changes did not affect non-residential foreclosures. When is a property a residential property, entitling the owners to additional protections? Residential property means “real property improved by four or fewer single family dwelling units that are designed principally and are intended for human habitation.” Therefore, if a property is an apartment complex with 10 units, it is not residential. But if the property is a 100-acre farm, that has a dilapidated house on it where no one has lived for ten years, it likely is residential.
The difference is quite striking. A commercial foreclosure requires a good deal less paperwork than a residential foreclosure. However, it often requires greater negotiation. Oftentimes in a residential foreclosure, the homeowner is not involved in the process. However, in a commercial foreclosure, the landowner frequently will try to negotiate a resolution. This will often allow for more creativity than with a residential foreclosure, with the hopes that both sides will be able to reach a resolution that all parties can accept.
Baltimore real estate lawyers at Huesman, Jones & Miles have experience in handling residential and commercial foreclosures throughout the state of Maryland, including Baltimore City, Prince George’s County and Montgomery County. For more information, call us at (443) 589-0150 or contact us online.