An Act To Require the Net Proceeds from the Sale of a Foreclosed Property To Be Returned to the Former Owner
Maine Legislature, Session 122, LD 0626
Committee Amendment CA_B_H591 (House)

COMMITTEE AMENDMENT .3 to H.P. 459, L.D. 626, 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 inserting before section 1 the following: 
·Sec.t. 36MRSA §94S-A is enacted to read: 
§945-A. 
Recove~ after foreclosure 
1. 
Right to repurchase. 
At any time before the sale to a 
3rd party of 
a 
property 
acguired 
under 
this article by 
a 
municipality. the former owner or the former owner's surviving 
spouse or heirs may repurchase the property by payment of all 
delinguent taxes. interest and associated costs incurred by the 
municipality. 
2. 
Notice. 
A municipality that acguires residential or 
commercial 
property 
by 
foreclosure 
under 
this article shall 
notify the former owner of the former owner's right to repurchase 
the property by establishing with the municipality a plan for 
payment based upon the former owner's ability to pay the taxes. 
interest and associated costs incurred by the municipality.' 
Further amend the bill in section 1 in that part designated 
"~" in subsection 4 in the 2nd line (page 2, line 11 in L.D.) 
by inserting after the following: 
"estate" the following: 
'or 
enter into a payment plan under section 945-A' 
Page l-LR2054(2) 
COMMITTEE AMENDMENT 
c 
'"~. 
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COMMITTEE AMENDMENT .'E. to H.P. 459, L.D. 626 
Further amend the bill by striking out all of section 2 and 
inserting in its place the following: 
. Sec. 
2. 
Appropriations 
and 
allocations. 
The 
following 
appropriations and allocations are made. 
AI>MIHISTRATIVE AND FIlfANCIAL SERVICES, DEPARTMENT OF 
Foreclosed Property Mandate Reimbursement 
(new) 
Initiative: 
Provides funds to reimburse municipalities for 90"0 
of the estimated cost of paying former owners the net proceeds 
from the sale of their foreclosed property, including funds to 
cover the cost of the disbursement of excess funds 
and other 
administrative costs associated with the postforeclosure payment 
plans. 
GENERAL FUND 
All Other 
2005-06 
$0 
2006-07 
$13,666,500 
GENERAL FUND TOTAL 
$0 
$13,666,500' 
Further amend the bill by relettering or renumbering any 
nonconsecutive 
Part 
letter 
or 
section 
number 
to 
read 
consecutively. 
SUMMARY 
This amendment is a minority report of the committee. 
It 
provides a right to former owners of property or their heirs to 
repurchase property that has been acquired by a municipality by 
foreclosure for nonpayment of taxes before that property is sold 
to a 
3rd party. 
It also requires the municipality to notify 
former 
owners 
that 
they 
may 
repurchase 
their 
property 
by 
establishing a 
repayment plan with the municipality based upon 
the former owners' ability to pay. 
The amendment also removes 
the retroactivity application date from the bill. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/26/05 ~ac:.. 
LD626 
LR2054(02) 
An Act To Require the Net Proceeds from the Sale of a Foreclosed Property To Be Returned to the 
Former Owner 
Fiscal Note for Bill as Amended by Committee Amendment ,j3. 
Committee: Taxation 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
2006-07 
Net Cost (Savings) 
General Fund 
$0 
$13,666,500 
)propriations/ Allocations 
General Fund 
State Mandate 
$0 
$13,666,500 
New or Expanded Activity 
Unit Affected 
The estimated cost of requiring a municipality to disburse excess 
Municipality 
funds to former owners is estimated to be $13,500,000 in fiscal year 
2006-07. The cost of the administrative aspects of these provisions 
is estimated to be $166.500 in fiscal year 2006-07. 
Fiscal Detail and Notes 
Projections 
2007-08 
$14,349,825 
$14,349,825 
Costs 
$l3,666,500 
Appropriations are included in the bill to fund 90% of the cost of the mandated provisions. 
LR2054(2) - Fiscal Note - Page 1 of 1 
Projections 
2008-09 
$15,067,316 
$15,067,316