Maine Passes Law to Ensure Homeowners Receive Proper Notification of Foreclosure

Maine has amended its preforeclosure notice requirements.

Before a foreclosure in Maine can begin, the foreclosing bank must send the borrowers a notice about their right to cure the default. As of September 19, 2019, a new Maine law (HP 671) amends this notice requirement.

Read on to learn more about preforeclosure notices in Maine and how the new law changes the statute’s requirements.

Preforeclosure Notice in Maine

If the property is the borrower’s primary residence, Maine law requires the bank has to send a notice about the right to cure before officially starting a foreclosure. The notice must give the borrower at least 35 days to cure the default (make up the missed payments) and reinstate the loan. (Me. Rev. Stat. tit. 14, § 6111.)

How Maine Amended the Preforeclosure Notice Law

HP 671 requires that the bank provide the preforeclosure notice containing information about the right to cure to the borrower (and any cosigner) by both:

  • certified mail (return receipt requested) and
  • first class mail (postage prepaid).

Previously, the law required the bank to send the notice by certified or first class mail.

When the 35-Day Cure Period Begins

The 35-day cure period starts when the notice about the right to cure is given to the borrower or cosigner. Under Maine law, notice is considered as having been given on the sooner of:

  • the date the borrower or cosigner signs the receipt for the certified mailing or, if the notice is undeliverable, the date the post office last attempts to deliver it, and
  • the date the borrower or cosigner receives the first class mailing.

The earlier version of Maine’s law stated that a borrower or cosigner was considered to have received the first class mailing on the 3rd calendar day after the bank mailed it. Under the amended statute, a borrower or cosigner is considered to have received the notice on the 7th calendar day after mailing. (Me. Rev. Stat. tit. 14, § 6111(2-A)).

Talk to a Lawyer

If you're facing a foreclosure in Maine and would like to learn more about the process, you need information about potential defenses to the foreclosure, or you want representation during foreclosure mediation, consider talking to a foreclosure lawyer.

To get information about different loss mitigation options (foreclosure alternatives) and how to apply for one of those options, speak to a lawyer or a HUD-approved housing counselor.

Effective date: September 19, 2019