Maryland Bankruptcy Court Determines Priority of Homeowner Association Fees versus Mortgage Lender’s Deed of Trust

In 2017, the Maryland Court of Appeals in the case of Select Portfolio Servicing, Inc. v. Saddlebrook West Utility Company, 455 Md. 313 (2017) (“Saddlebrook”) held that a provision in a recorded declaration by a utility that purported to create a lien to secure payment of an annual assessment to cover the construction of water and sewer facilities was ineffective to create a lien because the utility company failed to comply with the Maryland Contract Lien Act (“MCLA”).    Read the article………………………

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