Maine Legislators Debating New Home Foreclosure Laws

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The Maine Legislature's Insurance and Financial Services committee is holding work sessions today on eight bills related to real estate and home foreclosure law.

One bill under review, LD 1418, is an emergency act that would clarify the rights of homeowners and mortgagors facing foreclosure. The expansive measure would establish a mandatory foreclosure mediation program within the court system, outline what a mortgagee must include in a notice of foreclosure to a mortgagor and define new rights and procedures for all parties involved in foreclosure cases.

Another measure, LD 148, would require that mortgagees mail a notice of foreclosure to all tenants no less than 14 calendar days after the foreclosure proceeding is commenced.

LD 377 would allow courts, with good reason, to extend a deadline for a notice of sale or conducting a public sale in a foreclosure action.

LD 641 would require a notice to be sent to the municipal assessor of a foreclosure of a property in that municipality upon commencement of the foreclosure and 60 days prior to the completion of the foreclosure.

LD 728 is intended to protect homeowners by extending the period of redemption in residential foreclosure proceedings initiated on or after October 1, 2009 on any mortgage to one year.

LD 1144 defines the rights of renters living on properties under foreclosure proceedings. Tenants would be able to stay in their apartments up to 30 days after the property was finally foreclosed. If a mortgagor fails to notify a tenant within a week after the property goes into foreclosure proceedings, the tenant gets one month free rent.

LD 1125 would have the Maine Supreme Judicial Court create a "mortgagor answer form" that must accompany a mortgagee's foreclosure complaint.

LD 103 clarifies that before an auction at a foreclosed property, the displaced mortagor may claim his or her personal property from the site.

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