For creditors’ rights attorneys handling foreclosure actions in Maryland and the District of Columbia, posting a trustee’s bond—also known as a foreclosure bond—is a mandatory step to satisfy court requirements and move forward with a sale. Lexington National Insurance Corporation provides tailored foreclosure (trustee) bonds in these jurisdictions, combining competitive rates with an efficient issuance process.
Why Foreclosure (Trustee) Bonds Matter
When a developer subdivides a large parcel of land into individual lots for sale or development, local governments typically require guarantees that the necessary public improvements—roads, sidewalks, utilities, stormwater management, street lighting, and more—will be completed in accordance with approved plans. A subdivision bond is a form of surety bond that assures the municipality that funds will be available to complete those improvements if the developer defaults or fails to finish the work.
- Judicial Requirement: Maryland and D.C. courts mandate trustee’s bonds under their respective rules of procedure. These bonds ensure that the trustee complies with all court orders regarding distribution of funds from foreclosure sales.
- Compliance with Notice & Timing: Trustee’s bonds ensure that the sale is conducted only after proper notice periods have expired and that any surplus proceeds are held safely until the court directs disbursement. Without the bond in place, a sale cannot proceed, potentially subjecting your client to delays or sanctions.
Lexington’s Competitive Rate Structure
No surety provides lower prices on foreclosure bonds. This allows you to satisfy your obligation to get the best price for your client and the homeowner:
| Jurisdiction | Rate per $1,000 | Minimum Premium |
|---|---|---|
| Maryland | $3.50 | $75.00 per bond |
| District of Columbia | $10.00 | $150.00 per bond |
Example:
- For a $200,000 trustee’s bond in Maryland: 200 × $3.50 = $700.
- For a $200,000 trustee’s bond in D.C.: 200 × $10.00 = $2,000.
Key Court Rules & Statutory Citations
- Maryland:
- Md. Cts. & Jud. Proc. Code § 11-125(d): “No sale shall be held unless the trustee files with the court a bond… in an amount fixed by the court.”
- Maryland Rule 14-201: Governs trustee’s duties and bond requirements.
- District of Columbia:
- D.C. Code § 42-815: Requires that “the trustee shall give bond in an amount not less than the amount of the judgment… conditioned upon performance of his duties.”
The Lexington National Advantage
- Proprietary Issuance System
Our in-house platform automates underwriting and bond generation, cutting issuance times dramatically. - No Premiums on Canceled Sales
If a scheduled foreclosure sale is called off, you incur no bond premium—ensuring you only pay for bonds that are actually used. - Customized Solutions
Whether you require expedited issuance for an imminent court date or multiple bonds for a portfolio of cases, we adapt to your firm’s specific workflow and deadlines.
How to Obtain a Foreclosure (Trustee) Bond
- Contact Underwriting
Provide bond amount, jurisdiction (MD or D.C.), and the scheduled sale date. - Receive & Review
Upon approval, bond documents are issued and delivered electronically. - Post Bond
File the trustee’s bond with the appropriate circuit court clerk’s office to proceed with the foreclosure sale.
Serving Maryland & D.C. Creditors’ Rights Attorneys
Lexington National Insurance Corporation is dedicated to supporting creditor-focused practices in Maryland and D.C. with reliable, cost-effective foreclosure (trustee) bonds. Our low rates, proprietary issuance system, and “no premium on cancellation” guarantee make us the partner of choice for foreclosure matters in these jurisdictions.
Streamline your next foreclosure sale—contact our Foreclosure Bond team today:
- Email: jake@lnic.com
- Phone: 410-625-0800
- Online: https://lexingtonnational.com/md-dc-foreclosure-bonds/