Maryland Issues Moratorium on Repossessions, Evictions

Gov. Larry Hogan of Maryland issued an executive order last week that bars creditors from repossessing automobiles, trucks, or mobile residences during the remainder of the state’s COVID-19 catastrophic health emergency. This order, however, does not impose any kind of suspension of a creditor’s ability to continue assessing payments or penalties.

While this order is largely a moratorium on a number of types of evictions, the section most relevant to our members is Section III, which is reproduced below.

III. Prohibition on Certain Repossessions. To the extent any statute, rule or regulation of the State of Maryland or any political subdivision would permit a Creditor to repossess any automobile, truck, or Chattel Home by self-help (including, without limitation, CL §§ 9-60912-11512-62412-1021, or 14-2008), such statute, rule, or regulation is hereby suspended until the state of emergency is terminated and the catastrophic health emergency is rescinded.

The moratorium also creates a 90-day forbearance period on foreclosures once that process is initiated, and that forbearance period is in effect until the end of the state of emergency or when superseded by a following executive order.

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