An Act To Clarify the Application of Certain Statutory Requirements to Foreclosures
Maine Legislature, Session 124, LD 1707
Committee Amendment CA_A_H604 (House)
Amends: 9-A MRSA §5, 14 MRSA §6111, 14 MRSA §2401, 14 MRSA §6203-A, 14 MRSA §6203-B, 14 MRSA §6321, 14 MRSA §6321-A

COMMITTEE AMENDMENT "Ii " 
to H.P. 1208, L.D. 1707, Bill, "An Act To 
Clarify the Application of Certain Statutory Requirements to Foreclosures" 
Amend the bill by striking out everything after the enacting clause and before the 
emergency clause and inserting the following: 
'PART A 
Sec. A-I. 9-A MRSA §5-111, sub-§6 is enacted to read: 
6. Notwithstanding the other provisions of this section, a notice to cure default for a 
consumer credit transaction secured by a mortgage subject to Title 14, section 6111 must 
satisfY the requirements of Title 14, section 6111 and not the requirements of this section. 
Sec. A-2. 14 MRSA §6111, sub-§5, as enacted by PL 1997, c. 579, §4, is 
rep~led. 
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Sec. A-3. Application. This Part applies to any mOligage required to comply with 
the Maine Revised Statutes, Title 14, section 6111 for which a liotice to cure default 
pursuant Title 14, section 6111 has not been issued by a mOligagee before the effective 
date of this Pali. 
PARTB 
Sec. B-I. 14 MRSA §2401, sub-§3, ~G, as enacted by PL 2009, c. 402, §9, is 
amended to read: 
G. With regard to mOligage foreclosure actions, the title "judgment of foreClosure 
and sale," the street address of the real estate involved, if any, and the book and page 
number of the mOligage, if any. 
Sec. B-2. 14 MRS A §6111, sub-§l-A, ~C, as enacted by PL 2009, c. 402, § II, 
is amended to read: 
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C. An itemization of any other charges that must be paid in order to !':flti~rfv the filII 
obli!!ations of the loan cure the default; 
Sec. B-3. 14 MRSA §6203-A, as amended by PL 2009, c. 402, § 16, is repealed 
and the following enacted in its place: 
§6203-A. Power of sale; procedure; notice; form 
1. Power of sale. 'Any holder of a mortgage on real estate that is granted by a 
corporation, partnership, including a limited partnership, limited liability company or 
trustee of a trust and that contains a power of sale, or a person authorized by the power of 
sale, or an attorney duly authorized by a writing under seal, or a person acting in the 
name of the holder of such mortgage or any such authorized person, may, upon breach of 
condition and without action, do all the acts authorized or required by the power; except 
that a sale under the power is not effectual to foreclose a mortgage unless, previous to the 
sale, notice has been published once in each of 3 successive weeks, the first publication to 
be not less than 21 days before the day of the sale in a newspaper of general circulation in 
the town where the land lies and which notice must prominently state the street address of 
the real estate encumbered by the mortgage deed, if any, and the book and page number 
of the mortgage, if any. This provision is implied in every power of sale mortgage in 
wh ich it is not expressly set forth. For mortgage deeds executed on, or after October 1, 
1993, the power of sale may be used only if the mortgage deed states that it is given 
primarily for a business, commercial or agricultural purpose. A copy of the notice must, 
at least 21 days before the date of the sale under the power in the mortgage, be recorded 
in each registry of deeds in which the mortgage deed is or by law ought to be recorded 
and must be served on the mortgagor or its representative in interest, or may be sent by 
registered mail addressed to the mortgagor or the mortgagor's representative at the 
mOligagor's last known address, or to the person and to the address as may be agreed 
upon in the mortgage, at least 21 days before the date of the sale under the power in the 
mortgage. 
Any power of sale incorporated into a mortgage is not affected by the 
subsequent transfer of the mortgaged premises from the corporation, partnership, 
including a limited partnership, limited liability company or trustee of the trust to any 
other type of organization or to an individual or individuals. The power of sale may not 
be used to foreclose a mortgage deed granted by a trustee of a trust if at the time the 
mortgage deed is given the real estate is used exclusively for residential purposes, the real 
estate has 4 or fewer residential units and one of the units is the principal residence of the 
owner of at least 112 of the beneficial interest in the trust. If the mortgage deed contains a 
statement that at the time the mortgage deed is given the real estate encumbered by the 
mortgage deed is not used exclusively for residential purposes, that the real estate has 
more than 4 residential units or that none of the residential units is the principal residence 
of the owner of, at least 1/2 of the beneficial interest in the trust, the statement 
conclusively establishes these facts and the mortgage deed may be foreclosed by the 
power of sale. The method of foreclosure of real estate mortgages provided by this 
section is specifically subject to the order of priorities set out in section 6205. 
2. Notice to tenants; effect on title. In addition to the notices provided pursuant to 
subsection 1, the mortgagee shall provide a copy of the notice to a residential tenant if the 
mortgagee knows or should know by exercise of due diligence that the property is 
occupied as a rental unit. 
Upon request from a mortgagee, the mortgagor or its 
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representative in interest shall provide the name, address and other contact information 
for any residential tenant. Notice to a residential tenant may be served on the residential 
tenant by sheriff or may be sent by first class mail and registered mail at the residential 
tenant's last known address. A residential tenant may not be evicted unless a mortgagee 
institutes an action for forcible entry and detainer pursuant to section 6001 at least 21 
days after a mOligagee has served the notice required by this subsection. This subsection 
may not be construed to prohibit an action for forcible ently and detainer in accordance 
with section 6001 for a reason that is not related to a foreclosure sale. The failure to 
provide the notice required by this subsection does not affect the validity of the 
foreclosure sale. 
3. Form of foreclosure notice. The following form of foreclosure notice may be 
used and may be altered as circumstances require; but nothing herein may be construed to 
prevent the use of other forms. 
FORM 
Mortgagee's sale of real estate 
By viliue of and in execution of the Power of Sale contained in a certain MOIigage 
Deed given by................. to .................. dated ........................ and recorded in the 
....................... County Registry of Deeds, Book .......... , Page ......... , of which MOIigage 
the undersigned is the present holder, .................... (if by assignment, or in any fiducialY 
capacity give reference) .................................................................... , for breach of the 
conditions of said MOIigage and for the purpose offoreclosing the same there will be sold 
at Public Sale at ........... o'clock, ...... M. on the ........ day of ........ 20 ..... , at ......... , all and 
singular the premises described in said Mortgages, .................... , (in case of paliial 
releases state exceptions). 
To wit: "(Description exactly as in the Mortgage, including all reference to title, 
restrictions, encumbrances, etc., as made in the MOIigage)". 
Terms of Sale: (State here the amount, if any~ to be paid in cash by the purchaser at 
the time and place of the sale, and the time or times for payment of the balance or the 
whole as the case may be and any other terms or conditions relating to the sale). 
Other terms to be announced at the sale. 
Signed: 
(Present holder of MOIigage) 
4. Notice of sale. A notice of sale in subsection 3, published in accordance with this 
chapter or in accordance with the power in the mOligage together with such other or 
further notice, if any, as is required by the mortgage, is sufficient notice of the sale, and 
the premises are considered to have been sold, and the deed thereunder must convey the 
premises subject to and with the benefit of all restrictions, easements, improvements, 
outstanding tax titles, municipal or other public taxes, assessments, liens oi' claims in the 
nature of liens and existing encumbrances of record created prior to the mortgage,' 
whether or not reference to such restrictions, easements, improvements, liens or 
encumbrances is made in the deed; but no purchaser at the sale is bound to complete the 
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purchase if there are encumbrances, other than those named in the mortgage and included 
in the notice of the sale, that are not stated at the sale and included in the seller's contract 
with the purchase. 
5. Public sale. At a public sale pursuant to this section, a mortgagee may bid and 
may purchase any real estate sold at such sale, as long as the mortgagee is the highest 
bidder. If the real estate is sold for an amount in excess of the outstanding balance of the 
mortgage together with all interest and costs, said excess must be used to satisfy any other 
encumbrances on said property and after all said encumbrances are satisfied together with 
all interest and costs, any excess then remaining must be paid to the mortgagor. If the 
mortgagor or any person holding an encumbrance cannot be found after a diligent search, 
the money must be paid into the Superior Court in the county where the land lies for the 
benefit of the mortgagor or the holder of any such encumbrance. 
Sec. B-4. 14 MRSA §6203-B, as enacted by PL 1967, c. 424, §2, is amended to 
read: 
§6203-B. Copy of notice; affidavit; recording; evidence 
The person selling shall, within 30 days after the sale, cause a copy of the notice as 
published and hls the person's affidavit, fully and particularly stating hls the person's acts, 
or the acts of hls the person's principal or ward, to be recorded in the registry of deeds for 
the county where the land lies. If the affidavit shows that the requirements of the power 
of sale and this chapter section 6203-A, subsection I have in all respects been complied 
with, the affidavit or a celiified copy of the record thereof s-haU must be admitted as 
evidence that the power of sale was duly executed. In case of an error or omission in the 
affidavit recorded as aforesaid, the Superior Court, on petition and after such notice as it 
may order may, if it aeem-s determines proper, authorize the recording of an affidavit 
amending, correcting or in substitution for an affidavit so recorded, and the affidavit so 
authorized to be recorded or a certified copy of the record thereof s-haU must have the 
same effect and s-haU must be admitted in evidence, as if it had been recorded within said 
days, but such subsequent affidavit s-haU does not prejudicially affect any title or 
interest in land wh-i€fl. that may have arisen or hilVe been created between the recording of 
the original and of the subsequent affidavit. 
Sec. B-S. 14 MRSA §6321, 3rd 'IT, as amended by PL 2009, c. 402, § 17, is 
further amended to read: 
The foreclosure must be commenced in accordance with the Maine Rules of Civil 
Procedure, and the mortgagee shall within -W 60 days of commencing the foreclosure also 
record a copy of the complaint or a clerk's certificate ofthe filing of the complaint in each 
registry of deeds in which the mortgage deed is or by law ought to be recorded and such a 
recording thereafter constitutes record notice of commencement of foreclosure. 
The 
mortgagee shall further certify and provide evidence that all steps mandated by law to 
provide notice to the mortgagor pursuant to section 6111 were strictly performed. The 
mortgagee shall certify proof of ownership of the mortgage note and produce evidence of 
the mortgage note, mortgage and all assignments and endorsements of the mortgage note 
and mortgage. . The complaint. must allege with specificity the plaintiffs claim by 
mortgage on such real estate, describe the mortgaged premises intelligibly, including the 
street address of the mortgaged premises, if any, which must be prominently stated on the 
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to H.P. 1208, L.D. 1707 
first page of the complaint, state the book and page number of the mortgage, if any, 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 
mOligagee consent, state the amount due on the mortgage, state the condition broken and 
by reason of such breach demand a foreclosure and sale. If a clerk's certificate of the 
filing of the complaint is presented for recording pursuant to this section, the clerk's 
certificate must bear the title "Clerk's Cetiificate of Foreclosure" and prominently state, 
immediately after the title, the street address of the mortgaged premises, if any, and the 
book and page number of the mortgage, if any. Service of process on all parties in 
interest and all proceedings must be in accordance with the Maine Rules of Civil 
Procedure. "Parties in interest" includes mOligagors, holders of fee interest, mortgagees, 
lessees pursuant to recorded leases or memoranda thereof, lienors 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 cetiificate. 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 patty 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 mOligagee to that easement. Any other patty 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, 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. 
Within J-lQ days of recording a copy of the complaint or a clerk's certificate of the filing 
in the registry of deeds submitting the complaint for filing with the court, the mortgagee 
shall provide a copy of the complaint or of the clerk's certificate as submitted to the court 
that prominently states, immediately after the title, the street address of the mortgaged 
premises, if any, and the book and page number of the mOligage, if any, to the municipal 
tax assessor of the municipality in which the property is located and, if the mortgaged 
premises is manufactured housing as defined in Title 10, section 9002, subsection 7, to 
the owner of any land leased by the mOligagor. The failure to provide the notice required 
by this section does not affect the validity of the foreclosure sale: 
Sec. B-6. 14 MRSA §6321-A, sub-§l1, ~rA, as enacted byPL 2009, c. 402, § 18, 
is amended to read: 
A. The mOligagee, who has the authority to agree to a proposed settlement, loan' 
modification or dismissal of the .Ja.an action, except that the mortgagee may 
patiicipate by telephone or electronic means as long as that mortgagee is represented 
with authority to agree to a proposed settlement; 
Sec. B-7. 14 MRSA §6321-A, sub-§13, as enacted by PL 2009, c. 402, § 18, is 
amended to read: 
13. RepOl·t. A mediator must complete a report for each mediation conducted under 
this section. The mediator's repOli must indicate in a manner as determined by the court 
that the parties completed in full the Net Present Value Worksheet in the Federal Deposit 
Insurance Corporation Loan Modification Program Guide. If the report is mediation did 
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not #Ie result ef.a in the settlement or dismissal of the ease action, the report must include 
the outcomes of the Net Present Value Worksheet. As part of the report, the mediator 
may notify the court if, in the mediator's opinion, either party failed to negotiate in good 
faith. 
Sec. B-S. 14 MRS A §6322-A, as enacted by PL 2009, c. 402, § 19, is amended to 
read: 
§6322-A. Notice to tenants of foreclosure judgment 
The mortgagee shall, after entry of final judgment in favor of the mortgagee, provide 
a copy of the foreclosure judgment to any residential tenant of the premises. 
Upon 
request from a mortgagee, the mortgagor shall provide the name, address and other 
contact information for any residential tenant. A residential tenant who receives written 
notice under this section is not required to file any responsive pleadings and must receive 
written notice of all subsequent proceedings including all matters through and including 
sale of the property. The mortgagee shall provide written notice to the residential tenant 
if the mortgagee knows or should know by exercise of due diligence that the property is 
occupied as a residential rental unit. Notice may be provided to a residential tenant by 
first class mail and registered mail at the residential tenant's last known address only after 
the mortgagee has made 2 good faith efforts to provide written notice to the residential 
o tenant in person. After providing the notice required by this section, and upon expiration 
of the redemption period, the mortgagee may institute an action for forcible entry and 
detainer pursuant to section 6001. A residential tenant may not be evicted unless a 
mortgagee institutes an action for forcible entry and detainer pursuant to section 600 I 
after providing the notice required by this section and after the expiration of the 
redemption period. This section may not be construed to prohibit an action for forcible 
entry and detainer in accordance with section 600 I for a reason that is not related to a 
judicial foreclosure action. The failure to provide the notice required by this section does 
not affect the validity of the foreclosure sale. 
Sec. B-9. Retroactivity. This Part applies retroactively to June 15,2009.' 
SUMMARY 
This amendment replaces the bill. Part A of the amendment repeals the law allowing 
certain mortgages an exemption from the requirements for a notice to cure default of a 
mortgage. Part A clarifies that this change applies to any mortgage for which a notice to 
cure default has not been issued before the effective date of the bi II. 
o Part B of the amendment makes several changes to clarify Public Law 2009, chapter 
402. It recognizes that a mortgage need not be recorded to be foreclosed in conformance 
with Maine case law. 
It clarifies that the notice to cure default must include an 
itemization of the charges necessary to cure the default. It clarifies thatthe requirements 
for notice of foreclosure to tenants apply only to residential tenants, not commercial 
tenants. It clarifies that a residential tenant may not be evicted upon foreclosure except 
through the forcible entry and detainer process. It clarifies that the failure to provide a 
notice to residential tenants does not become a title defect. It extends the time for the 
copy of the foreclosure complaint or clerk's certificate to be filed with the registry of 
deeds in which the mortgage is recorded from 10 days to 60 days and the copy to be 
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submitted to the municipal tax assessor from 3 days to 10 days after filing in the registry 
of deeds. The changes in Part B are retroactive to June 15,2009. 
FISCA.L \()TE REQLlj{ED 
(See a llached) 
COMMITTEE AMENDMENT 
Approved: 01126110 .::k?ac 
LD 1707 
LR 2048(03) 
An Act To Clarify the Application of Certain Statutory Requirements to Foreclosures 
Fiscal Detail and Notes 
Fiscal Note for Bill as Amended by Committee Amendment '/1" 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
"I: 
Any additional costs to the Bureau of Consumer Credit Protection in the Department of Professional and Financial 
Regulation can be absorbed by the bureau utilizing existing budgeted resources. 
LR2048(03) - Fiscal Note - Page 1 of 1 
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