Bill > LD1841

This bill modifies the process for municipalities selling tax-acquired properties (real estate taken due to unpaid property taxes) by introducing several key changes. The bill allows former property owners to offer a deed in lieu of foreclosure and mandates a more comprehensive notification process, requiring municipalities to send multiple certified notices to property owners at different stages of the foreclosure and sale process. The sale process is expanded to include a sealed bid option with specific requirements, such as advertising the bid in local newspapers, establishing a minimum bid, and awarding the sale to the highest qualified bidder. The bill also allows municipalities to deduct various expenses from the sale proceeds, including administrative costs, attorney's fees, and even demolition expenses. If a property cannot be sold through traditional methods, municipalities may sell it through alternative means authorized by their legislative body. For properties retained by the municipality for municipal use or development, the bill now requires an independent appraisal and limits the payment to the former owner to 10% of the excess sale proceeds. Additionally, if the former owner cannot be located, the municipality can publish a notice in a local newspaper and may now deduct the publication costs from the excess funds. These changes aim to provide more transparency, flexibility, and fairness in the tax-acquired property sale process.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1841&snum=132