Section 13-406 - Property used in violation of Mortgage Fraud law. - Maryland Statutes

§ 13-406. Property used in violation of Mortgage Fraud law.
 

(a)  In general.- Except as provided in subsections (e) and (f) of this section and § 12-403(c) of this article, an owner's interest in real property may be forfeited if the real property was used in connection with a violation of the Mortgage Fraud law. 

(b)  Jurisdiction.- Forfeiture proceedings for real property may be brought in the jurisdiction where: 

(1) the criminal charges are pending; 

(2) the owner resides; or 

(3) the real property is located. 

(c)  Proceedings in another jurisdiction.-  

(1) If forfeiture proceedings for real property are brought in a jurisdiction other than where the real property is located, a notice of pending litigation shall be filed in the jurisdiction where the real property is located. 

(2) A notice of pending litigation required under this subsection shall include at least: 

(i) the name and address of the owner of the real property; 

(ii) a description of the real property; and 

(iii) a description of the reasons for the filing of the forfeiture proceedings and notice of pending litigation. 

(d)  Principal family residence; stay of proceedings pending appeal.- If an owner of real property used as the principal family residence is convicted under the Mortgage Fraud law and the owner files an appeal of the conviction, the court shall stay forfeiture proceedings under § 12-403(c) of this article or subsection (f) of this section against the real property during the pendency of the appeal. 

(e)  Rebuttable presumption.-  

(1) Except as provided in subsection (f) of this section, there is a rebuttable presumption that property or part of a property in which a person has an ownership interest is subject to forfeiture as proceeds, if the State establishes by clear and convincing evidence that: 

(i) the person has violated the Mortgage Fraud law; 

(ii) the property was acquired by the person during the violation or within a reasonable time after the violation; and 

(iii) there was no other likely source for the property. 

(2) A claimant of the property has the burden of proof to rebut the presumption established under paragraph (1) of this subsection. 

(f)  When principal family residence may not be forfeited.- Real property used as the principal family residence may not be forfeited under subsection (e) of this section unless: 

(1) an owner of the real property was convicted under subsection (e)(1) of this section; or 

(2) the real property is covered by § 13-403(b)(2) of this subtitle. 
 

[2008, chs. 3, 4; ch. 36, § 6.]