Bill > LD1444

This bill strengthens notice requirements for residential mortgage foreclosures by mandating that mortgagees provide at least 35 days' written notice to homeowners before initiating a judicial foreclosure action. The bill requires mortgagees to strictly comply with these notice requirements, and failure to do so will result in the court entering a judgment against the mortgagee that prevents them or any future assignee from pursuing foreclosure on the same property. Specifically, the bill applies to mortgages on residential properties where the homeowner occupies the property as their primary residence and the mortgage is for personal, family, or household use. If a homeowner receives such a notice and pays the full amount due (including interest, late charges, and attorney's fees) within the 35-day period, they will be restored to all rights under the original mortgage as if the default never occurred. Importantly, the bill has a retroactive application, meaning it will apply to all previous foreclosure judgments, orders, or dismissals, potentially providing relief to homeowners who may have been subject to foreclosure actions that did not strictly follow notice requirements. This legislation appears to be a response to a recent Supreme Judicial Court decision (Finch v. U.S. Bank) and aims to provide additional protections for homeowners facing potential foreclosure.

Justice

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1444&snum=132