An Act To Require the Net Proceeds from the Sale of a Foreclosed Property To Be Returned to the Former Owner LR0345(03)
Maine Legislature, Session 121, LD 0937
Committee Amendment CA_B_H470 (House)
Amends: 36 MRSA §949

COMMITTEE AMENDMENT "B" to H.P. 694, L.D. 937, Bill, "An 
Act To Require the Net Proceeds from the Sale of a Foreclosed 
Property To Be Returned to the Former Owner" 
Amend the bill by striking out everything after the enacting 
clause and before the summary and inserting in its place the 
following: 
'Sec. 1. 36 MRSA §949 is enacted to read: 
§949. 
Disbursement of excess funds 
A municipality that obtains title to residential real estate 
occypied by the former owner under the operation of this article 
may. ynless selling the property to the former owner. only sell 
the real estate through a competitive bidding process. and the 
municipality shall disburse to the former owner the excess of any 
funds as provided in this section. 
1. 
Definitions. 
As 
used 
in this section. 
unless 
the 
context 
otherwise 
indicates. 
the 
following 
terms 
have 
the 
following meanings. 
A. 
"Excess of any funds" means the amount obtained for the 
disposition of the real estate less: 
(1) 
All tax liens imposed on the real estate by the 
municipality. including interest: 
(2) 
Fees for recordation and discharge of the lien as 
established by Title 33. section 751. plus $13; 
Page l-LR0345(3) 
COMMITTEE AMENDMENT 
., 
COMMITTEE AMENDMENT ./!;;" to H.P. 694, L.D. 937 
(3) The fee established in section 943 for sending a 
notice if the 
notice 
is 
actually sent, 
including 
certified mail, return receipt requested fees: 
(4) 
Any court costs; 
(5) 
All expenses incurred in disposing of the real 
estate: and 
(6) 
A penalty of up to 25% of the difference between 
the amount obtained for the disposition less the amount 
of the tax liens. 
B. 
"Former owner" means the party named on the tax lien 
mortgage at the time of the levY of the tax lien or that 
party's successors, heirs or assigns. 
2. 
Time and form of return; notice. 
Within 30 days of the 
disposition of the real estate, the municipality shall mail by 
certified mail, return receipt requested, to the former owner's 
last known address, notice of the excess of any funds. 
The 
notice must include an itemized statement showing the amount for 
which the real estate was sold and all deductions made from that 
amount. 
The 
notice 
also 
must 
include 
directions 
for 
the 
redemption of the excess of any funds, including the hours of the 
operation of the clerk of the municipality. 
3. 
Escrow; failure to redeem. 
The municipality shall hold 
the excess of any funds in escrow for 36 months for the benefit 
of the former owner. 
The municipality shall pay immediately the 
excess of any funds upon the personal appearance of the former 
owner or a legal representative of the former owner. 
If the 
former owner or a legal representative of the former owner fails 
to appear personally within 36 months, the excess of any funds 
must be paid to the Treasurer of State to be credited to the 
General Fund until the excess of any funds becomes abandoned 
under the Uniform Unclaimed Property Act, at which point it must 
be reported and paid to the State in accordance with that Act. ' 
SUMMARY 
This 
amendment 
requires 
municipalities 
acqu~r~ng 
by 
foreclosure residential real estate that is occupied by the 
former owner to use a competitive bidding process when disposing 
of the property unless the municipality is selling the property 
to the former owner. 
The amendment also permits the municipality 
to retain a 25% penalty from the proceeds of sale, removes the 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ':fJ" to H. P. 694, L. D . 937 
requirement that the municipality reimburse former owners within 
days of the foreclosure even if the property has not been 
sold and removes the retroactivity provision from the bill. 
FISCAL :\OTE REQrIRED 
(See attached) 
COMMITTEE AMENDMENT 
New or Expanded Activity 
Approved: 05/14/03 A?ae 
12lst Maine Legislature 
Office of Fiscal and Program Review 
LD937 
An Act To Require the Net Proceeds from the Sale of a Foreclosed 
Property To Be Returned to the Former Owner 
LR0345(03) 
Fiscal Note for Bill as .Amended by Committee Amendment" " 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
Current Cost - State Mandate. 
Unit Affected 
Costs 
Requires a municipality to utilize a competitive bid process to 
dispose of certain property and requires the municipality to 
disburse the excess of any funds to the former owner. 
Municipality 
Significant 
LR0345(3) - Fiscal Note - Page 1 of 1