An Act To Protect Owners of Property in Foreclosure from Accumulation of Debts When Mortgagees Refuse To Complete the Foreclosure Process

Emergency preamble. Whereas,  acts and resolves of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and

Whereas,  in certain circumstances, lenders are not fully completing the foreclosure process following foreclosure judgment after homeowners have vacated the premises; and

Whereas,  property taxes and other debts remain the legal responsibility of the homeowner following foreclosure if title to the property is not transferred to the lender or to another party following a foreclosure sale; and

Whereas,  lenders are not required to notify the homeowner that the foreclosure process has not been completed on the property; and

Whereas,  this legislation seeks to protect homeowners by requiring them to provide notice that they have vacated the premises, along with their contact information, to the attorney representing the lender in the foreclosure and to the municipal tax assessor in the municipality in which the mortgaged property is located; and

Whereas,  this legislation also requires lenders to notify the owner of the vacated premises if the foreclosure process has not been completed within 6 months following the foreclosure judgment; and

Whereas,  this legislation must be enacted immediately so that homeowners are protected from accumulating further debt; and

Whereas,  in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Sec. 1. 14 MRSA §6326  is enacted to read:

§ 6326.  Notice of vacated premises after foreclosure judgment

Emergency clause. In view of the emergency cited in the preamble, this legislation takes effect when approved.

SUMMARY

This bill requires owners of foreclosed property who vacate their homes after receiving notice of a foreclosure judgment to notify the attorney representing the mortgagee in the foreclosure and the municipal tax assessor of the municipality where the mortgaged premises are located that they have vacated the property within 30 days of vacating the mortgaged premises and to also provide their contact information. If, within 6 months following a foreclosure judgment, the mortgagee has not completed the foreclosure process, the bill requires the mortgagee to notify the mortgagor using the contact information provided and to notify the municipal tax assessor.