C. [§ 6.28] Procedure Subsequent To Sale

• Jurisdiction: Maryland

C. [§ 6.28] Procedure Subsequent to Sale

The procedure subsequent to the sale is governed by Md. Rules 14-305 and 14-306. See Md. Rule 14-215(a). Under Rule 14-305, as soon as is practical after the sale and no more than 30 days after the date of sale, the person authorized to sell the property must render a report of sale to the court. Md. Rule 14-305(a). Additionally, in Baltimore City and some counties, the auctioneer must file an affidavit. The clerk of the court will then issue a notice that unless cause to the contrary is shown, the sale will be ratified by the circuit court within 30 days from the date of the clerk's notice, with a copy of the clerk's notice to be published once a week for three successive weeks. See Md. Rule 14-305(c). The purchaser at a foreclosure sale also must submit an affidavit setting forth: (1) whether he is acting as an agent for anyone, and if so, the name of his principal; (2) whether others are interested as principals, and if so, the names of the other principals; and (3) that he has not directly or indirectly discouraged anyone from bidding for the property. Md. Rule 14-305(b).

The effect of the gavel falling at foreclosure is to foreclose the equity of redemption. See In re Wallace, 31 B.R. 64 (Bankr. D. Md. 1983); Waring v. Guy, 248 Md. 544, 237 A.2d 763 (1968); Butler v. Daum, 245 Md. 447, 226 A.2d 261 (1967); see also In re De Souza, 135 B.R. 793 (Bankr. D. Md. 1991). Under Maryland law, the mortgagor in default has the right to pay the debt with interest and costs until the gavel falls. See Williams v. Safe Deposit & Trust Co., 167 Md. 499, 175 A. 331 (1934). The theory is that the property is security for the debt, and while the mortgagee has an interest in the property, he or she really is entitled to payment of the debt.

In Crysopt Corp. v. Board of Savings & Loan Ass'n Commissioners, 324 Md. 315, 597 A.2d 65 (1991), a...