Maine Amends Foreclosure Regulations
Maine Amends Foreclosure Laws
Maine has passed HP 1020 – LD 1405 which makes amendments to 14 MRSA §6323, sub-§1 with the purpose of ensuring timely completion of foreclosures. The act extends the mortgagee’s time to sell the property following an adjournment of the sale, provides for a waiver of foreclosure with written consent of the mortgagor, and establishes a time frame for a mortgagee to file a report of sale. The provisions of this act are effective September 19, 2019.
HP 1020 – LD 1405 modifies existing law regarding the adjournment of a foreclosure sale. Existing law allows for a 7 day adjournment which may be renewed until a sale is completed. New law allows for an adjournment of up to 30 days. Additionally, the court, upon mortgagee’s motion, may grant further extensions as deemed appropriate.
HP 1020 – LD 1405 also requires a mortgagee to convey the property to the mortgagor upon redemption, or in the case of reinstatement allows for the execution of a waiver of foreclosure with the written consent of the mortgagor. The waiver and written consent must be filed with the court along with the motion to dismiss the foreclosure.
Finally, a report of sale is required to be filed with the court no later than 60 days after the public sale or 30 days after the mortgagee’s delivery of the deed conveying the property, whichever occurs sooner. The mortgagee, by motion and with good cause, may petition the court to extend the deadline for the filing of the report of sale. Failure to timely file the report of sale terminates the mortgagee’s right to seek a deficiency judgment.
The full text of the act may be found at: http://www.mainelegislature.org/legis/bills/getPDF.asp?paper=HP1020&item=1&snum=129
Maine Amends Foreclosure Notice Requirements
Maine has passed HP. 671- L.D. 907 which makes amendments to 14 MRSA §6111, sub-§2-A in order to ensure that proper notification is made to defendants in foreclosure proceedings. The terms of the act are effective September 19, 2019.
Maine HP. 671- L.D. 907 requires that a mortgagee provide notice to a mortgagor and any cosigner to their last known addresses by both certified mail, return receipt requested, and first class mail, postage prepaid.
With respect to notices sent certified mail, return receipt requested; the time of receipt is determined to be the sooner of: the date the mortgagor or cosigner signs the return receipt or, in the case of mail returned undeliverable, the date the post office last attempted delivery and the date the mortgagor or cosigner received the notice sent by ordinary first class mail, postage prepaid.
With respect to notice sent by ordinary first-class mail, postage prepaid; the time of receipt is considered to be the 7th calendar day after mailing as identified by the post office certificate of mailing.
The full text of the act may found at: http://www.mainelegislature.org/legis/bills/getPDF.asp?paper=HP0671&item=1&snum=129
Adam Faria, JD, is a regulatory compliance consultant with CLA. He is a graduate of Northeastern University and earned his juris doctor at Suffolk University Law School. He is admitted to the bar in Massachusetts and New Hampshire.
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