An Act To Repeal Strict Foreclosure II
Maine Legislature, Session 123, LD 1617
Committee Amendment CA_A_S255 (Senate)
Amends: 14 MRSA §6201, 14 MRSA §6202, 14 MRSA §6251, 14 MRSA §6306

COMMITTEE AMENDMENT '/4 " to S.P. 561, L.D. 1617, Bill, "An Act To 
Repeal Strict Foreclosure" 
II 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 14 MRSA §6201, as amended by PL 1987, c. 736, §16, is repealed. 
Sec. 2. 14 MRSA §6202 is repealed. 
IS 
Sec. 3. 14 MRS A §6203, as amended by PL 1987, c. 667, § 13, is repealed. 
Sec. 4. 14 MRS A §6204, as amended by PL 1993, c. 321, § I, is repealed. 
Sec. 5. 14 MRS A §6204-B, as enacted by PL 1989, c. 829, §2, is repealed. 
Sec. 6. 14 MRSA §6251 is amended to read: 
§6251. Form of complaint 
The mortgagee or person claiming under ffim the mortgagee in an action for 
possession may declare on !tis the mortgagee's own seizin, in a real action, without 
naming the mortgage or assignment. If it appears that the plaintiff is entitled to possession 
and that the condition had been broken when the action was commenced, the court shall, 
on motion of either party, award the conditional judgment, unless it appears that the 
tenant is not the mortgagor or a person claiming under ffim the mortgagor, or that the 
o't'l'Aer of the mortgage proceeded for foreclosure conformably to sections 6203 and 6204 
before the action was commenced, the plaintiff not consenting to such judgment. Unless 
such judgment is awarded, judgment shall be ~ entered as at common law. 
Sec. 7. 14 MRS A §6301 is amended to read: 
§6301. Accounting required 
I 
Any mortgagor or other person having a right to redeem lands mortgaged may 
demand of the mortgagee or person claiming under ffim the mortgagee a true account of 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 561, L.D. 1617 
the sum due on the mortgage, and of the rents and profits, and money expended in repairs 
and improvements, if any. If He the mortgagee unreasonably refuses or neglects to render 
such an account in writing, or in any other way by fl-i.s default prevents the plaintiff from 
performing or tendering performance of the condition of the mortgage, He 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 sflaI.l. must be sustained without such ~ tender, and thereupon he shall 
lObe the mortgagor is entitled to judgment for redemption and costs. 
Sec. 8. 14 MRSA §6306 is amended to read: 
§6306. -- payment to clerk of court 
When a mortgagee or person claiming under htm a mortgagee residing out of the 
State, or whose residence is unknown to the party entitled to redeem, has commenced 
proceedings under section 6203 in accordance with this chapter, or when such ~ 
mortgagee or claimant having no tenant, agent or attorney in possession on whom service 
can be made has commenced proceedings under section 6201 in accordance with this 
chapter, in either case the party entitled to redeem may bring the civil action, as 
prescribed in section 6301, and pay at the same time to the clerk of the court and sum 
due, which payment shall have has the same effect as a tender before the action. The 
court shall order such ~ notice to be given of the pendency of the action, as it judges 
proper. 
Sec. 9. 14 MRS A §6321, as amended by PL 1991, c. 744, §§l and 2, is further 
amended to read: 
§6321. Commencement offoreclosure by civil action 
After breach of condition in a mortgage of first priority, the mortgagee or any person 
claiming under htm the mortgagee may proceed for the purpose of foreclosure by a civil 
action against all parties in interest in either the Superior Court or the District Court in the 
division wherein in which the mortgaged premises or any part thereof of the mortgaged 
premises is located, regardless of the amount of the mortgage claim. The method of 
foreclosure of real estate mortgages provided by this section is an alternative method to 
those provided in sections 6201 and 6203 and is specifically subject to the order of 
priorities set out in section 6205. 
After breach of condition of any mortgage other than one of the first priority, the 
mortgagee or any person claiming under htm the mortgagee may proceed for the purpose 
of foreclosure by a civil action against all parties in interest, except for parties in interest 
having a superior priority to the foreclosing mortgagee, in either the Superior Court or the 
District Court in the division '""herein in which the mortgaged premises or any part 
thereof of the mortgaged premises is located. Parties in interest having a superior priority 
shall may not be joined nor will their interests be affected by the proceedings, but the 
resulting sale under section 6323 shall be ~ of the defendant or mortgagor's equity of 
redemption only. The plaintiff shall notify the priority parties in interest of the action by 
sending a copy of the complaint to the parties in interest by certified mail. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to S.P. 561, L.D. 1617 
The foreclosure must be commenced in accordance with the Maine Rules of Civil 
Procedure, and the mortgagee shall also record a copy of the complaint or a clerk's 
certificate of the filing of the complaint in each registry of deeds in which the mortgage 
deed is or by law ought to be recorded and SUCh!! recording thereafter constitutes record 
notice of commencement of foreclosure. The complaint must allege with specificity the 
plaintiffs claim by mortgage on such real estate, describe the mortgaged premises 
intelligibly, state the existence of public utility easements, if any, that were recorded 
subsequent to the mortgage and prior to the commencement of the foreclosure proceeding 
and without mortgagee consent, state the amount due on the mortgage, state the condition 
broken and by reason of such breach demand a foreclosure and sale. Service of process 
lIon all parties in interest and all proceedings must be in accordance with the Maine Rules 
of Civil Procedure. "Parties in interest" include includes mortgagors, holders of fee 
interest, mortgagees, lessees pursuant to recorded leases or memoranda thereof, I ienors 
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 su-c-It 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; provided, 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. 
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 125 I; or sanitary districts~ as formed under Title 38, chapter 11. 
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. 
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.' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A" to S.P. 561, L.D. 1617 
SUMMARY 
This amendment replaces the bill. It repeals the provisions for strict foreclosure but 
leaves in place the provisions for power of sale foreclosures that are used by financial 
institutions for commercial loans. 
FISCAL :.'IOTE REQliIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/31/07 .wac:.. 
LD 1617 
LR 2252(02) 
An Act To Repeal Strict Foreclosure 
Fiscal Note for Bill as Amended by Committee Amendment '',4 " 
Committee: Judiciary 
Fiscal Note Required: Yes 
Fiscal Note 
Minor savings - General Fund 
Minor revenue decrease - General Fund 
Correctional and Judicial Impact Statements 
This bill may decrease the number of civil suits filed in the court system. 
Reductions in the collection of filing fees may decrease General Fund revenue by minor amounts. 
LR2252(02) - Fiscal Note - Page 1 of 1