Maine Amends its Provisions Regarding Foreclosure Proceedings and Notice of Mortgagor’s Right to Cure

Maine recently passed two bills, House Paper 1020 (HP 1020) and House Paper 671 (HP 671), which amend the state’s laws governing foreclosure proceedings, and the mortgagor’s right to cure notice requirements.  The key provisions of HP 1020 include the following:  

• Modifies the time period in which a mortgagee must sell a property following adjournment of a foreclosure sale.
• Clarifies that a mortgagee must convey the property to the mortgagor upon redemption and states that a mortgagee may execute a waiver of foreclosure in conjunction with a reinstatement only with the written consent of the mortgagor.  Any waiver and the written consent of the mortgagor must be filed with the court along with a motion to dismiss the foreclosure.
• Requires a report of sale 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.  Although the mortgagee, by motion and with good cause, may petition the court to extend the deadline for the filing of the report of sale, note that the failure to timely file the report of sale terminates the mortgagee’s right to seek a deficiency judgment.

Additionally, HP 671 amends the provisions regarding the mortgagor’s right to cure notice requirements in foreclosure actions.  Specifically, HP 671 requires that a mortgagee provide such notice to a mortgagor and any cosigner by both certified mail (return receipt requested) and first class mail (postage prepaid). 

Further, the time the notice is determined to be given to the mortgagor or cosigner is the sooner of:  (1) the date the mortgagor or cosigner signs the receipt; or (2) if the notice is undeliverable, the date the post office last attempts to deliver it by certified mail, and the date the mortgagor or cosigner receives the notice by first class mail.  Note that when notice is provided by first class mail, a post office department certificate of mailing to the mortgagor or cosigner is conclusive proof of receipt on the 7th calendar day after mailing.

HP 1020 and HP 671 are effective on September 19, 2019.