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MRS Title 14, Chapter 713: MISCELLANEOUS PROVISIONS
RELATING TO FORECLOSURE OF REAL PROPERTY MORTGAGES
Text current through October 1, 2010
ii |
Subchapter 1: GENERAL PROVISIONS
14 §6101. ATTORNEY'S FEES
For the foreclosure of a mortgage by any method authorized by this chapter, the mortgagee or the person
claiming under him may charge a reasonable attorney's fee which shall be a lien on the mortgaged estate, and
shall be included with the expense of publication, service and recording in making up the sum to be tendered
by the mortgagor or the person claiming under him in order to be entitled to redeem, provided the sum has
actually been paid in full or partial discharge of an attorney's fee. [1981, c. 429, §1 (AMD).]
SECTION HISTORY
1967, c. 424, §1 (AMD). 1981, c. 429, §1 (AMD).
balance of the obligation or otherwise enforce the mortgage because of a default consisting of the mortgagor's
failure to make any required payment, tax payment or insurance premium payment, by any method authorized
by this chapter until at least 35 days after the date that written notice pursuant to subsection 1-A is given by
the mortgagee to the mortgagor and any cosigner against whom the mortgagee is enforcing the obligation
secured by the mortgage at the last known addresses of the mortgagor and any cosigner that the mortgagor
has the right to cure the default by full payment of all amounts that are due without acceleration, including
reasonable interest and late charges specified in the mortgage or note as well as reasonable attorney's fees.
If the mortgagor tenders payment of the amounts before the date specified in the notice, the mortgagor is
restored to all rights under the mortgage deed as though the default had not occurred.
1-A. Contents of notice. A mortgagee shall include in the written notice under subsection 1 the
following:
A. The mortgagor's right to cure the default as provided in subsection 1; [2009, c. 402, §11
(NEW).]
B. An itemization of all past due amounts causing the loan to be in default; [2009, c. 402, §11
(NEW).]
C. An itemization of any other charges that must be paid in order to cure the default; [2009, c.
476, Pt. B, §2 (AMD); 2009, c. 476, Pt. B, §9 (AFF).]
D. A statement that the mortgagor may have options available other than foreclosure, that the mortgagor
may discuss available options with the mortgagee, the mortgage servicer or a counselor approved by the
United States Department of Housing and Urban Development and that the mortgagor is encouraged
to explore available options prior to the end of the right-to-cure period; [2009, c. 402, §11
(NEW).]
E. The address, telephone number and other contact information for persons having authority to modify a
mortgage loan with the mortgagor to avoid foreclosure, including, but not limited to, the mortgagee, the
mortgage servicer and an agent of the mortgagee; [2009, c. 402, §11 (NEW).]
F. The name, address, telephone number and other contact information for all counseling agencies
approved by the United States Department of Housing and Urban Development operating to assist
mortgagors in the State to avoid foreclosure; and [2009, c. 402, §11 (NEW).]
G. Where mediation is available as set forth in section 6321-A, a statement that a mortgagor may request
mediation to explore options for avoiding foreclosure judgment. [2009, c. 402, §11 (NEW).]
3. Notice procedure. A mortgagee shall provide notice to a mortgagor and any cosigner under this
section to the last known addresses of the mortgagor and cosigner by:
A. Certified mail, return receipt requested. For the purposes of this paragraph, the time when the notice
is given to the mortgagor or cosigner is the date the mortgagor or cosigner signs the receipt or, if the
notice is undeliverable, the date the post office last attempts to deliver it; or [1997, c. 579, §2
(NEW).]
B. Ordinary first class mail, postage prepaid. For the purposes of this paragraph, the time when the notice
is given to the mortgagor or cosigner is the date when the mortgagor or cosigner receives that notice. A
post office department certificate of mailing to the mortgagor or cosigner is conclusive proof of receipt
on the 3rd calendar day after mailing. [1997, c. 579, §2 (NEW).]
3-A. Information; Bureau of Consumer Credit Protection. Within 3 days of providing written
notice to the mortgagor as required by subsections 1 and 1-A, the mortgagee shall file with the Department
of Professional and Financial Regulation, Bureau of Consumer Credit Protection, in electronic format as
designated by the Bureau of Consumer Credit Protection, information including:
A. The name and address of the mortgagor and the date the written notice required by subsections 1 and
1-A was mailed to the mortgagor and the address to which the notice was sent; [2009, c. 402,
§12 (NEW).]
B. The address, telephone number and other contact information for persons having authority to modify a
mortgage loan with the mortgagor to avoid foreclosure, including, but not limited to, the mortgagee, the
mortgage servicer and an agent of the mortgagee; and [2009, c. 402, §12 (NEW).]
C. Other information, as permitted by state and federal law, requested of the mortgagor by the Bureau of
Consumer Credit Protection. [2009, c. 402, §12 (NEW).]
3-B. Report. On a quarterly basis, the Department of Professional and Financial Regulation, Bureau of
Consumer Credit Protection shall report to the joint standing committee of the Legislature having jurisdiction
over insurance and financial services matters on the number of notices received pursuant to subsection 3-A.
To the extent information is available, the report must also include information on the number of foreclosure
filings based on data collected from the court and the Department of Professional and Financial Regulation,
Bureau of Financial Institutions and on the types of lenders that are filing foreclosures.
4-A. Letter to mortgagor. Within 3 days of receiving electronic information from the mortgagee as set
forth in subsection 3-A, the Department of Professional and Financial Regulation, Bureau of Consumer Credit
Protection shall send a written notice to the mortgagor that includes a summary of the mortgagor's rights and
available resources, including information concerning the foreclosure mediation program as established in
section 6321-A.
5. Exceptions.
SECTION HISTORY
1991, c. 707, §1 (NEW). 1993, c. 373, §1 (AMD). 1995, c. 654, §§1-4
(AMD). 1997, c. 579, §§1-4 (AMD). 2009, c. 402, §§10-14 (AMD). 2009,
c. 476, Pt. A, §2 (AMD). 2009, c. 476, Pt. B, §2 (AMD). 2009, c. 476,
Pt. B, §9 (AFF).
1. Hotline. The Department of Professional and Financial Regulation, Bureau of Consumer Credit
Protection shall establish a statewide hotline to facilitate a mortgagor's communication with housing
counselors approved by the United States Department of Housing and Urban Development for the purposes of
discussing options to avoid foreclosure.
2. Outreach; housing counseling services. The Department of Professional and Financial Regulation,
Bureau of Consumer Credit Protection, in consultation with the Maine State Housing Authority, shall
coordinate an outreach program to help families with their housing needs with the intent of expanding the
outreach program statewide. The bureau shall use a portion of the funds received pursuant to subsection 4 for
contracts with nonprofit organizations that provide housing counseling services and mortgage assistance.
3. Form. The Department of Professional and Financial Regulation, Bureau of Consumer Credit
Protection, after consultation with interested parties, shall develop for use by the Supreme Judicial Court a
one-page form notice for making a request for mediation and making an answer to a foreclosure complaint as
described in section 6321-A, subsection 2.
4. Funding. The Department of Professional and Financial Regulation, Bureau of Consumer Credit
Protection shall establish a nonlapsing, dedicated account for the deposit of revenues transferred from the
Department of Administrative and Financial Services, Maine Revenue Services pursuant to Title 36, section
4641-B, subsection 6 and for any funds received from any public or private source. The Bureau of Consumer
Credit Protection shall use the account to cover the costs of carrying out the duties in this section and section
6111, subsections 3-A, 3-B and 4-A, and the funds in the account may not be used for any other purpose.
5. Report. Beginning January 1, 2010, the Department of Professional and Financial Regulation,
Bureau of Consumer Credit Protection shall report every 6 months on the revenues received pursuant to
subsection 4, the expenditures made to carry out the purposes of this section, any financial orders submitted
by the bureau and any updated assumptions related to the bureau's revenues and expenditures in accordance
with this section. The report must be submitted to the joint standing committee of the Legislature having
jurisdiction over appropriations and financial affairs and the joint standing committee of the Legislature
having jurisdiction over insurance and financial services matters.
SECTION HISTORY
2009, c. 402, §15 (NEW).
SECTION HISTORY
1975, c. 552, §3 (AMD).
SECTION HISTORY
1981, c. 279, §7 (AMD). 1987, c. 736, §16 (AMD). 2007, c. 391, §1 (RP).
SECTION HISTORY
2007, c. 391, §2 (RP).
SECTION HISTORY
1965, c. 116, (AMD). 1965, c. 513, §§28-A (AMD). 1969, c. 291, §§1,2
(AMD). 1973, c. 625, §84 (AMD). 1987, c. 667, §13 (AMD). 2007, c. 391,
§3 (RP).
once in each of 3 successive weeks, the first publication to be not less than 21 days before the day of the sale
in a newspaper of general circulation in the town where the land lies and which notice must prominently
state the street address of the real estate encumbered by the mortgage deed, if any, and the book and page
number of the mortgage, if any. This provision is implied in every power of sale mortgage in which it is not
expressly set forth. For mortgage deeds executed on or after October 1, 1993, the power of sale may be used
only if the mortgage deed states that it is given primarily for a business, commercial or agricultural purpose.
A copy of the notice must, at least 21 days before the date of the sale under the power in the mortgage, be
recorded in each registry of deeds in which the mortgage deed is or by law ought to be recorded and must
be served on the mortgagor or its representative in interest, or may be sent by registered mail addressed to
the mortgagor or the mortgagor's representative at the mortgagor's last known address, or to the person and
to the address as may be agreed upon in the mortgage, at least 21 days before the date of the sale under the
power in the mortgage. Any power of sale incorporated into a mortgage is not affected by the subsequent
transfer of the mortgaged premises from the corporation, partnership, including a limited partnership, limited
liability company or trustee of the trust to any other type of organization or to an individual or individuals.
The power of sale may not be used to foreclose a mortgage deed granted by a trustee of a trust if at the time
the mortgage deed is given the real estate is used exclusively for residential purposes, the real estate has 4
or fewer residential units and one of the units is the principal residence of the owner of at least 1/2 of the
beneficial interest in the trust. If the mortgage deed contains a statement that at the time the mortgage deed is
given the real estate encumbered by the mortgage deed is not used exclusively for residential purposes, that
the real estate has more than 4 residential units or that none of the residential units is the principal residence
of the owner of at least 1/2 of the beneficial interest in the trust, the statement conclusively establishes these
facts and the mortgage deed may be foreclosed by the power of sale. The method of foreclosure of real estate
mortgages provided by this section is specifically subject to the order of priorities set out in section 6205.
2. Notice to tenants; effect on title. In addition to the notices provided pursuant to subsection 1, the
mortgagee shall provide a copy of the notice to a residential tenant if the mortgagee knows or should know
by exercise of due diligence that the property is occupied as a rental unit. Upon request from a mortgagee,
the mortgagor or its representative in interest shall provide the name, address and other contact information
for any residential tenant. Notice to a residential tenant may be served on the residential tenant by sheriff or
may be sent by first class mail and registered mail at the residential tenant's last known address. A residential
tenant may not be evicted unless a mortgagee institutes an action for forcible entry and detainer pursuant
to section 6001 at least 21 days after a mortgagee has served the notice required by this subsection. This
subsection may not be construed to prohibit an action for forcible entry and detainer in accordance with
section 6001 for a reason that is not related to a foreclosure sale. The failure to provide the notice required by
this subsection does not affect the validity of the foreclosure sale.
3. Form of foreclosure notice. The following form of foreclosure notice may be used and may be
altered as circumstances require; but nothing herein may be construed to prevent the use of other forms.
FORM
Mortgagee's sale of real estate
By virtue of and in execution of the Power of Sale contained in a certain Mortgage Deed
given by ................. to .................. dated ........................ and recorded in the .......................
County Registry of Deeds, Book .........., Page ........., of which Mortgage the undersigned
is the present holder, .................... (if by assignment, or in any fiduciary capacity give
reference) ...................................................................., for breach of the conditions of said Mortgage
and for the purpose of foreclosing the same there will be sold at Public Sale at ........... o'clock, ......
M. on the ........ day of ........ 20....., at ........., all and singular the premises described in said
Mortgages, ...................., (in case of partial releases state exceptions).
To wit: "(Description exactly as in the Mortgage, including all reference to title, restrictions,
encumbrances, etc., as made in the Mortgage)".
Terms of Sale: (State here the amount, if any, to be paid in cash by the purchaser at the time and
place of the sale, and the time or times for payment of the balance or the whole as the case may be and
any other terms or conditions relating to the sale).
Other terms to be announced at the sale.
Signed: ..........................................................
(Present holder of Mortgage)
................................................ 20...............
4. Notice of sale. A notice of sale in subsection 3, published in accordance with this chapter or in
accordance with the power in the mortgage together with such other or further notice, if any, as is required
by the mortgage, is sufficient notice of the sale, and the premises are considered to have been sold, and the
deed thereunder must convey the premises subject to and with the benefit of all restrictions, easements,
improvements, outstanding tax titles, municipal or other public taxes, assessments, liens or claims in the
nature of liens and existing encumbrances of record created prior to the mortgage, whether or not reference to
such restrictions, easements, improvements, liens or encumbrances is made in the deed; but no purchaser at
the sale is bound to complete the purchase if there are encumbrances, other than those named in the mortgage
and included in the notice of the sale, that are not stated at the sale and included in the seller's contract with
the purchase.
5. Public sale. At a public sale pursuant to this section, a mortgagee may bid and may purchase any
real estate sold at such sale, as long as the mortgagee is the highest bidder. If the real estate is sold for an
amount in excess of the outstanding balance of the mortgage together with all interest and costs, said excess
must be used to satisfy any other encumbrances on said property and after all said encumbrances are satisfied
together with all interest and costs, any excess then remaining must be paid to the mortgagor. If the mortgagor
or any person holding an encumbrance cannot be found after a diligent search, the money must be paid into
the Superior Court in the county where the land lies for the benefit of the mortgagor or the holder of any such
encumbrance.
SECTION HISTORY
1967, c. 396, (NEW). 1967, c. 424, §2 (NEW). 1967, c. 544, §37 (RP).
1971, c. 113, (AMD). 1987, c. 667, §14 (AMD). 1991, c. 134, §1 (AMD).
1991, c. 768, §§1,2 (AMD). 1993, c. 277, §§1,2 (AMD). 1993, c. 277,
§5 (AFF). 1995, c. 106, §1 (AMD). 1995, c. 106, §1 (AMD). 2009, c.
402, §16 (AMD). 2009, c. 476, Pt. B, §3 (RPR). 2009, c. 476, Pt. B, §9
(AFF).
affidavit amending, correcting or in substitution for an affidavit so recorded, and the affidavit so authorized
to be recorded or a certified copy of the record thereof must have the same effect and must be admitted in
evidence, as if it had been recorded within said 30 days, but such subsequent affidavit does not prejudicially
affect any title or interest in land that may have arisen or have been created between the recording of the
original and of the subsequent affidavit. [2009, c. 476, Pt. B, §4 (AMD); 2009, c. 476,
Pt. B, §9 (AFF).]
SECTION HISTORY
1967, c. 424, §2 (NEW). 2009, c. 476, Pt. B, §4 (AMD). 2009, c. 476,
Pt. B, §9 (AFF).
SECTION HISTORY
1967, c. 424, §2 (NEW).
SECTION HISTORY
1967, c. 424, §2 (NEW).
You are hereby notified in accordance with the statute, of my intention, on ......................... (date
of sale), to foreclose by sale under the Power of Sale for breach of condition, the Mortgage held by me
on property located on ....................... Street, Town of ........................., County of ....................... and
State of ............... dated ......................... and recorded in the ..................... County Registry of Deeds,
Book ............................., Page .................., to secure a note (or other obligation) signed by you, for the
whole, or any part, of which you may be liable to me and in case of a deficiency in the proceeds of the
Foreclosure Sale to hold you liable for the whole or any part thereof still remaining unpaid.
Very truly yours,
.............................................................................
(Name of holder of said Mortgage)
Affidavit
I hereby certify on oath that on the ...................... day of .......................... 19...................., I mailed
by registered mail with return receipt requested, the notice a copy of which is hereinabove set forth,
direct to such person or persons at the address therein named which was the last address of such
person known to me at the time of mailing or to such person or persons at the address therein named
which was the person and the address agreed upon in said Mortgage.
Subscribed and sworn to before me this ...................... day of .......................... 19.................. .
...........................................................................
Notary Public
[1987, c. 736, §17 (AMD).]
SECTION HISTORY
1967, c. 424, §2 (NEW). 1987, c. 736, §17 (AMD). 1987, c. 736, §17
(AMD).
2. Notice of right to cure; application. Before foreclosing the rights of the purchaser described in
subsection 1, the seller or the seller's heirs or assigns must give written notice to the purchaser at the last
known address of the purchaser that the purchaser has 30 days to cure the default by full payment of all
amounts past due including reasonable interest and late charges specified in the contract. If the purchaser
tenders payment of the amount before the date specified in the notice, the purchaser is restored to all rights
under the contract as though the default had not occurred.
12 | 14 §6203-F. Foreclosure of bond for deed and contracts for sale of real estate
MRS Title 14, Chapter 713: MISCELLANEOUS PROVISIONS
RELATING TO FORECLOSURE OF REAL PROPERTY MORTGAGES
A. A seller gives notice to the purchaser under this section by mailing the notice by certified mail, return
receipt requested. If the notice is undeliverable by certified mail, the seller must send the notice to the
purchaser by ordinary mail. The time when notice is given is the date the purchaser signs the receipt or,
if the notice is undeliverable by certified mail, the date the notice was sent by ordinary mail. [1991,
c. 707, §2 (NEW).]
B. This subsection applies only to contracts for the sale of residential real estate located in this State,
when the purchaser is in possession of the subject real estate. All other transactions are governed by the
terms of the contract and applicable law. [1991, c. 707, §2 (NEW).]
SECTION HISTORY
1967, c. 544, §38 (NEW). 1991, c. 707, §2 (RPR).
SECTION HISTORY
1967, c. 424, §3 (AMD). 1991, c. 134, §2 (AMD). 1993, c. 321, §1 (AMD).
2007, c. 391, §4 (RP).
SECTION HISTORY
1975, c. 552, §4 (NEW). 1989, c. 829, §1 (RP).
SECTION HISTORY
1989, c. 829, §2 (NEW). 2007, c. 391, §5 (RP).
unable to agree upon the amount of such payment, the court shall fix and determine the amount. The court
may issue all necessary and needful process or processes to enforce any order or decree made under this
section. The owner of any prior mortgage assigned under the provisions hereof shall not be holden on nor
liable for the debt secured by such mortgage unless he especially agrees in writing by him signed to be so
holden or liable. An appeal from any final decree may be taken as in other civil actions.
SECTION HISTORY
2007, c. 391, §6 (AMD).
Subchapter 5: REDEMPTION
14 §6301. ACCOUNTING REQUIRED
Any mortgagor or other person having a right to redeem lands mortgaged may demand of the mortgagee
or person claiming under the mortgagee a true account of the sum due on the mortgage, and of the rents and
profits, and money expended in repairs and improvements, if any. If the mortgagee unreasonably refuses
or neglects to render such an account in writing, or in any other way by default prevents the plaintiff from
performing or tendering performance of the condition of the mortgage, the mortgagor may bring a civil
action for the redemption of the mortgaged premises within the time limited in former section 6204, and
therein offer to pay the sum found to be equitably due, or to perform any other condition, as the case may
require. Such an offer has the same force as a tender of payment or performance before the commencement
of the action. The action must be sustained without such a tender, and thereupon the mortgagor is entitled to
judgment for redemption and costs. [2007, c. 391, §7 (AMD).]
SECTION HISTORY
2007, c. 391, §7 (AMD).
SECTION HISTORY
1979, c. 540, §23 (RP).
SECTION HISTORY
1979, c. 540, §24 (AMD).
SECTION HISTORY
2007, c. 391, §8 (AMD).
SECTION HISTORY
1987, c. 667, §15 (AMD).
address of the mortgaged premises, if any, and the book and page number of the mortgage, if any. Service
of process on all parties in interest and all proceedings must be in accordance with the Maine Rules of Civil
Procedure. "Parties in interest" includes mortgagors, holders of fee interest, mortgagees, lessees pursuant
to recorded leases or memoranda thereof, lienors and attaching creditors all as reflected by the indices in
the registry of deeds and the documents referred to therein affecting the mortgaged premises, through the
time of the recording of the complaint or the clerk's certificate. Failure to join any party in interest does not
invalidate the action nor any subsequent proceedings as to those joined. Failure of the mortgagee to join, as
a party in interest, the holder of any public utility easement recorded subsequent to the mortgage and prior
to commencement of foreclosure proceedings is deemed consent by the mortgagee to that easement. Any
other party having a claim to the real estate whose claim is not recorded in the registry of deeds as of the
time of recording of the copy of the complaint or the clerk's certificate need not be joined in the foreclosure
action, and any such party has no claim against the real estate after completion of the foreclosure sale, except
that any such party may move to intervene in the action for the purpose of being added as a party in interest
at any time prior to the entry of judgment. Within 10 days of submitting the complaint for filing with the
court, the mortgagee shall provide a copy of the complaint or of the clerk's certificate as submitted to the
court that prominently states, immediately after the title, the street address of the mortgaged premises, if any,
and the book and page number of the mortgage, if any, to the municipal tax assessor of the municipality in
which the property is located and, if the mortgaged premises is manufactured housing as defined in Title 10,
section 9002, subsection 7, to the owner of any land leased by the mortgagor. The failure to provide the notice
required by this section does not affect the validity of the foreclosure sale. [2009, c. 476, Pt. B,
§5 (AMD); 2009, c. 476, Pt. B, §9 (AFF).]
For purposes of this section, "public utility easements" means any easements held by public utilities, as
defined in Title 35-A, section 102; sewer districts, as defined in Title 38, section 1251; or sanitary districts, as
formed under Title 38, chapter 11. [2007, c. 391, §9 (AMD).]
The acceptance, before the expiration of the right of redemption and after the commencement of
foreclosure proceedings of any mortgage of real property, of anything of value to be applied on or to the
mortgage indebtedness by the mortgagee or any person holding under the mortgagee constitutes a waiver of
the foreclosure unless an agreement to the contrary in writing is signed by the person from whom the payment
is accepted or unless the bank returns the payment to the mortgagor within 10 days of receipt. The receipt
of income from the mortgaged premises by the mortgagee or the mortgagee's assigns while in possession of
the premises does not constitute a waiver of the foreclosure proceedings of the mortgage on the premises.
[2007, c. 391, §9 (NEW).]
The mortgagee and the mortgagor may enter into an agreement to allow the mortgagor to bring the
mortgage payments up to date with the foreclosure process being stayed as long as the mortgagor makes
payments according to the agreement. If the mortgagor does not make payments according to the agreement,
the mortgagee may, after notice to the mortgagor, resume the foreclosure process at the point at which it was
stayed. [2007, c. 391, §9 (NEW).]
SECTION HISTORY
1975, c. 552, §5 (NEW). 1977, c. 564, §69 (AMD). 1981, c. 429, §§2,3
(AMD). 1983, c. 447, §2 (AMD). 1991, c. 744, §§1,2 (AMD). 2007, c.
391, §9 (AMD). 2009, c. 402, §17 (AMD). 2009, c. 476, Pt. B, §5 (AMD).
2009, c. 476, Pt. B, §9 (AFF).
B. "Program" means the foreclosure mediation program established pursuant to subsection 3. [2009,
c. 402, §18 (NEW).]
2. Notice; summons and complaint; foreclosure proceedings. When a plaintiff commences an action
for the foreclosure of a mortgage on an owner-occupied residential real property of no more than 4 units
that is the primary residence of the owner-occupant, the plaintiff shall attach to the front of the foreclosure
complaint a one-page form notice to the defendant as developed by the Department of Professional and
Financial Regulation, Bureau of Consumer Credit Protection in accordance with this subsection and section
6112, subsection 3. The form notice must be written in language that is plain and readily understandable by
the general public.
At a minimum, the form notice must contain the following:
A. A statement that failure to answer the complaint will result in foreclosure of the property subject to
the mortgage; [2009, c. 402, §18 (NEW).]
B. A sample answer and an explanation that the defendant may fill out the form and return it to the court
in the envelope provided as the answer to the complaint. If the debtor returns the form to the court, the
defendant does not need to file a more formal answer or responsive pleading and will be scheduled for
mediation in accordance with this section; and [2009, c. 402, §18 (NEW).]
C. A description of the program. [2009, c. 402, §18 (NEW).]
3. Foreclosure mediation program established. Under the authority granted in Title 4, section 18-
B, the court shall adopt rules to establish a foreclosure mediation program to provide mediation in actions
for foreclosure of mortgages on owner-occupied residential property with no more than 4 units that is the
primary residence of the owner-occupant. The program must address all issues of foreclosure, including but
not limited to reinstatement of the mortgage, modification of the loan and restructuring of the mortgage debt.
Mediations conducted pursuant to the program must use the calculations, assumptions and forms that are
established by the Federal Deposit Insurance Corporation and published in the Federal Deposit Insurance
Corporation Loan Modification Program Guide as set out on the Federal Deposit Insurance Corporation’s
publicly accessible website.
5. No waiver of rights. The plaintiff’s or defendant’s rights in the foreclosure action are not waived by
participating in the program.
6. Commencement of mediation. When a defendant returns the notice required under subsection 2 or
otherwise requests mediation or makes an appearance in a foreclosure action, the court shall refer the plaintiff
and defendant to mediation pursuant to this section.
8. Referral to mortgage assistance programs. At any time during the mediation process, the mediator
may refer the defendant to housing counseling or mortgage assistance programs.
9. No entry of judgment. For any foreclosure complaint filed after January 1, 2010 that is scheduled for
mediation in accordance with this section, a final judgment may not issue until a mediator’s report has been
completed pursuant to subsection 13.
the foreclosure process but not scheduled for sale before January 1, 2010 and an owner-occupied residential
property with no more than 4 units that is the primary residence of the owner-occupant and that is scheduled
for sale before that date.
11. Parties to mediation. A mediator shall include in the mediation process under this section any
person the mediator determines is necessary for effective mediation. Mediation and appearance in person is
mandatory for:
A. The mortgagee, who has the authority to agree to a proposed settlement, loan modification or
dismissal of the action, except that the mortgagee may participate by telephone or electronic means as
long as that mortgagee is represented with authority to agree to a proposed settlement; [2009, c.
476, Pt. B, §6 (AMD); 2009, c. 476, Pt. B, §9 (AFF).]
B. The defendant; [2009, c. 402, §18 (NEW).]
C. Counsel for the plaintiff; and [2009, c. 402, §18 (NEW).]
D. Counsel for the defendant, if represented. [2009, c. 402, §18 (NEW).]
12. Good faith effort. Each party and each party's attorney, if any, must be present at mediation as
required by this section and shall make a good faith effort to mediate all issues. If any party or attorney fails
to attend or to make a good faith effort to mediate, the court may impose appropriate sanctions.
13. Report. A mediator must complete a report for each mediation conducted under this section. The
mediator's report must indicate in a manner as determined by the court that the parties completed in full the
Net Present Value Worksheet in the Federal Deposit Insurance Corporation Loan Modification Program
Guide. If the mediation did not result in the settlement or dismissal of the action, the report must include the
outcomes of the Net Present Value Worksheet. As part of the report, the mediator may notify the court if, in
the mediator's opinion, either party failed to negotiate in good faith.
14. Records. The court shall maintain records or other information relating to the program as necessary
to meet the reporting requirements in subsection 7, paragraph B.
SECTION HISTORY
2009, c. 402, §18 (NEW). 2009, c. 476, Pt. B, §§6, 7 (AMD). 2009, c.
476, Pt. B, §9 (AFF).
provided. If the mortgagor, his successors, heirs and assigns pay to the mortgagee the sum that the court
adjudges to be due and payable to the mortgagee with interest within the period of redemption, then the
mortgagee shall forthwith discharge the mortgage and file a dismissal of the action for forclosure with the
clerk of the court. [1977, c. 618, (NEW).]
On mortgages executed prior to October 1, 1975, unless the mortgage contains language to the contrary,
the period of redemption shall be one year from the date of the judgment. On mortgages executed on or after
October 1, 1975, the period of redemption shall be 90 days from the date of the judgment. In either case, the
redemption period shall begin to run upon entry of the judgment of foreclosure, provided that no appeal is
taken. [1983, c. 447, §3 (AMD).]
SECTION HISTORY
1975, c. 552, §5 (NEW). 1977, c. 618, (RPR). 1983, c. 447, §3 (AMD).
1991, c. 744, §3 (AMD).
SECTION HISTORY
2009, c. 402, §19 (NEW). 2009, c. 476, Pt. B, §8 (AMD). 2009, c. 476,
Pt. B, §9 (AFF).
at the public sale. If the mortgagee is the highest bidder at the public sale, there is no obligation to account
for any surplus upon a subsequent sale by the mortgagee. Any rights of the mortgagee to a deficiency claim
against the mortgagors are limited to the amount established as of the date of the public sale. The date of
the public sale is the date on which bids are received to establish the sales price, no matter when the sale is
completed by the delivery of the deed to the highest bidder. If the property is conveyed by deed pursuant
to a public sale in accordance with this subsection, a copy of the judgment of foreclosure and evidence of
compliance with the requirements of this subsection for the notice of public sale and the public sale itself
must be attached to or included within the deed, or both, or otherwise be recorded in the registry of deeds.
2. Additional notice requirements for civil actions commenced on or after January 1, 1995. In
foreclosures by civil action commenced on or after January 1, 1995, the mortgagee shall cause notice of the
public sale to be mailed by ordinary mail to all parties who appeared in the foreclosure action or to their
attorneys of record. The notice must be mailed no less than 30 calendar days before the date of sale. Failure to
provide notice of the public sale to any party who appeared does not affect the validity of the sale.
3. Extension of deadline. Upon a showing of good cause, the court may extend a deadline established
by this section for the publication of the notice of sale or conducting the public sale.
SECTION HISTORY
1975, c. 552, §5 (NEW). 1983, c. 447, §4 (RPR). 1993, c. 373, §2 (AMD).
1993, c. 544, §1 (RPR). 2005, c. 291, §1 (AMD). 2007, c. 103, §1 (AMD).
2009, c. 402, §20 (AMD).
SECTION HISTORY
1975, c. 552, §5 (NEW). 1983, c. 447, §5 (AMD). 1987, c. 691, §2 (AMD).
1997, c. 508, §A3 (AFF). 1997, c. 508, §B4 (AMD). 2003, c. 20, §T10
(AMD).
14 §6325. EXCEPTIONS
The method of foreclosure set forth in sections 6321 to 6324 may be used for the foreclosure of all real
property mortgages, except for railroad mortgages, so called, or for indentures or deeds of trust securing
bond issues of corporations wherein the method of foreclosure or sale is provided in the indenture or deed
of trust or any similar instrument; provided that any such railroad mortgage, corporate indenture, deed of
trust or similar instrument executed subsequent to January 1, 1976, shall be subject to this subchapter unless
the applicability of this chapter is expressly negated in such instrument. The method of foreclosure set forth
in sections 6321 to 6324 shall not apply to tax lien mortgages created under Title 36. [1981, c. 698,
§87 (AMD).]
SECTION HISTORY
1975, c. 552, §5 (NEW). 1977, c. 564, §70 (AMD). 1981, c. 698, §87
(AMD).
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24 | 14 §6325. Exceptions