An Act To Expedite the Foreclosure Process
Maine Legislature, Session 126, LD 1389
Committee Amendment CA_A_H734 (House)
Amends: 36 MRSA §4641-B, 36 MRSA §4641-C, 14 MRSA §6323, 32 MRSA §11002, 32 MRSA §11017, 14 MRSA §6321-A

COMMITTEE AMENDMENT "A" to H.P. 992, L.D. 1389, Bill, "An Act To 
Expedite the Foreclosure Process" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'PART A 
Sec. A-I. 36 MRSA §4641-B, sub-§6, as enacted by PL 2009, c. 402, §21, is 
amended to read: 
6. 
Transfer of tax on deeds of foreclosure or in lieu of foreclosure. 
Notwithstanding subsection -4- 4-B, the State Tax Assessor shall monthly pay to the 
Department of Professional and Financial Regulation, Bureau of Consumer Credit 
Protection the revenues derived from the tax imposed on the transfer of real property by 
deeds that convey real property back to a lender holding a bona fide mortgage that is 
genuinely in default, either by deeds from a mortgagor to a mortgagee in lieu of 
foreclosure or by deeds from a mortgagee to itself at a public sale pursuant to Title 14-
section 6323 described in section 4641-C, subsection 2, paragraphs A and C. 
Sec. A-2. 36 MRSA §4641-B, sub-§7 is enacted to read: 
7. Assignment of rights in or connected with foreclosed real property. A person 
assigning rights in or connected with title to foreclosed real property for which a deed is 
not given, including rights as high bidder at the public sale pursuant to Title 14, section 
6323, shall report the assignment to the register of deeds in the county or counties in 
which the real property is located within 30 days of the assignment on a return in the 
form of an affidavit furnished by the State Tax Assessor. The State Tax Assessor shall 
provide for the collection of the tax in the same manner as in subsection 1 as if the 
assignment were a transfer of real property by deed. The return must be signed by both 
the transferor and the transferee and accompanied by payment of the tax due. When the 
real property is located in more than one county, the tax must be divided among the 
counties in the same proportion in which the real property is distributed among the 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT H{}. to H.P. 992, L.D. 1389 
counties. Disputes between 2 or more counties as to the proper amount of tax due to 
them as a result of a particular transaction must be decided by the State Tax Assessor 
upon the written petition of an official authorized to act on behalf of any such county. 
This subsection applies to assignments made during the time between the judgment of 
foreclosure and the transfer of the foreclosed real property by deed. 
Sec. A-3. 36 MRSA §4641-C, sub-§2, as amended by PL 2009, c. 402, §22, is 
repealed and the following enacted in its place: 
2. 
Mortgage deeds, deeds of foreclosure and deeds in lieu of foreclosure. 
Mortgage deeds, discharges of mortgage deeds and partial releases of mortgage deeds. 
A. For the purposes of this subsection, only the mortgagor is exempt from the tax 
imposed for a deed in lieu of foreclosure. 
B. In the event of a transfer, by deed, assignment or otherwise, to a 3rd party at a 
public sale held pursuant to Title 14, section 6323, the tax imposed upon the grantor 
by section 4641-A applies only to that portion of the proceeds of the sale that exceeds 
the sums required to satisfy in full the claims of the mortgagee and all junior 
claimants originally made parties in interest in the proceedings or having 
subsequently intervened in the proceedings as established by the judgment of 
foreclosure and sale. The tax must be deducted from the excess proceeds. 
C. In the event of a transfer, by deed, assignment or otherwise, from a mortgagee or 
its servicer to the mortgagee or its servicer or to the owner of the mortgage debt at a 
public sale held pursuant to Title 14, section 6323, the mortgagee or its servicer if the 
servicer is the selling entity is considered to be both the grantor and grantee for 
purposes of section 4641-A. 
D. In the event of a deed in lieu of foreclosure and a deed from a mortgagee or its 
servicer to the mortgagee or its servicer or to the owner of the mortgage debt at a 
public sale held pursuant to Title 14, section 6323, the tax applies to the value of the 
property. 
For the purposes of this subsection, "servicer" means a person or entity that acts on behalf 
of the owner of a mortgage debt to provide services related to the mortgage debt. 
including accepting and crediting payments from the mortgagor, issuing statements and 
notices to the mortgagor, enforcing rights of the owner of a mortgage debt and initiating 
and pursuing foreclosure proceedings; 
PARTB 
Sec. B-l. 14 MRS A §6326 is enacted to read: 
&6326. Order of abandonment for residential properties in foreclosure 
1. 
Plaintiff request. The plaintiff in a judicial foreclosure action may present 
evidence of abandonment as described in subsection 2 and may request a determination 
pursuant to subsection 3 that the mortgaged premises have been abandoned if: 
A. More than 50% of the mortgaged premises is used for residential purposes; and 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT 1)" to H.P. 992, L.D. 1389 
B. The mortgaged premises are the subject of an uncontested foreclosure action or an 
uncontested foreclosure judgment has been issued with respect to the premises and a 
foreclosure sale with respect to the premises is pending pursuant to this subchapter. 
An action or judgment is uncontested if: 
(1) The mortgagor has not appeared in the action to defend against foreclosure; 
(2) There has been no communication from or on behalf of the mortgagor to the 
plaintiff for at least 90 days showing any intent of the mortgagor to continue to 
occupy the premises or there is a document of conveyance or other written 
statement, signed by the mortgagor, that indicates a clear intent to abandon the 
premises; and 
(3) Either all mortgagees with interests that are junior to the interests of the 
plaintiff have waived any right of redemption pursuant to section 6322 or the 
plaintiff has obtained or has moved to obtain a default judgment against such 
junior mortgagees. 
2. 
Evidence of abandonment. 
For the purposes of this section, evidence of 
abandonment showing that the mortgaged premises are vacant and the occupant has no 
intent to return may include, but is not limited to, the following: 
A. Doors and windows on the mortgaged premises are continuously boarded up, 
broken or left unlocked; 
B. Rubbish, trash or debris has observably accumulated on the mortgaged premises; 
C. Furnishings and personal property are absent from the mortgaged premises; 
D. The mortgaged premises are deteriorating so as to constitute a threat to public 
health or safety; 
E. A mortgagee has changed the locks on the mortgaged premises and neither the 
mortgagor nor anyone on the mortgagor's behalf has requested entrance to, or taken 
other steps to gain entrance to, the mortgaged premises; 
F. Reports of trespassers, vandalism or other illegal acts being committed on the 
mortgaged premises have been made to local law enforcement authorities; 
G. A code enforcement officer or other public official has made a determination or 
finding that the mortgaged premises are abandoned or unfit for occupancy; 
H. 
The mortgagor is deceased and there is no evidence that an heir or personal 
representative has taken possession of the mortgaged premises; and 
1. Other reasonable indicia of abandonment. 
3. Court determination of abandonment; vacation of order. The plaintiff may at 
any time after commencement of a foreclosure action under section 6321 file with the 
court a motion to determine that the mortgaged premises have been abandoned. 
A. If the court finds by clear and convincing evidence, based on testimony or reliable 
hearsay, including affidavits by public officials and other neutral nonparties, that the 
mortgaged premises have been abandoned, the court may issue an order granting the 
motion and determining that the premises are abandoned. 
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COMMrITEE AMENDMENT" A" to H.P. 992, L,D, 1389 
B. The court may not grant the motion if the mortgagor or a lawful occupant of the 
mortgaged premises appears and objects to the motion. 
e. The court shall vacate the order under paragraph A if the mortgagor or a lawful 
occupant of the mortgaged premises appears in the action and objects to the order 
prior to the entry of judgment. 
4. Effect of court determination of abandonment. Upon the issuance of an order 
of abandonment under subsection 3 determining that the mortgaged premises are 
abandoned: 
A. The foreclosure action may be advanced on the docket and receive priority over 
other cases as the interests of justice require; 
B. The period of redemption provided for in section 6322 is shortened to 45 days 
from the later of the issuance of the judgment of foreclosure and the order of 
abandonment; 
e. If the mortgaged premises include dwelling units occupied by tenants as their 
primary residence, the plaintiff shall assume the duties of landlord for the rental units 
as required by chapter 709 upon the later of the issuance of the judgment of 
foreclosure and the order of abandonment; and 
D. The plaintiff shall notify the municipality in which the premises are located and 
shall record the order of abandonment in the appropriate registry of deeds within 30 
days from the later of the issuance of the judgment of foreclosure and the order of 
abandonment. 
Sec. B-2. Application. Notwithstanding the Maine Revised Statutes, Title 1, 
section 302, that section of this Part that enacts Title 14, section 6326 applies to 
foreclosure actions that are pending on the effective date of this Part. 
PARTC 
Sec. C-l. 14 MRSA §6323, sub-§l, as amended by PL 2007, c. 103, §1, is 
further amended to read: 
1. Procedures for all civil actions. Upon expiration of the period of redemption, if 
the mortgagor or the mortgagor's successors, heirs or assigns have not redeemed the 
mortgage, any remaining rights of the mortgagor to possession terminate, and the 
mortgagee shall cause notice of a public sale of the premises stating the time, place and 
terms of the sale to be published once in each of 3 successive weeks in a newspaper of 
general circulation in the county in which the premises are located, the first publication to 
be made not more than 90 days after the expiration of the period of redemption. +fie 
Except when otherwise required under 12 Code of Federal Regulations, Section 1024.41 
or any successor provision, the public sale must be held not less than 30 days nor more 
than 45 days after the first date of that publication aOO. Except for sales of premises that 
the court has determined to be abandoned pursuant to section 6326, the public sale may 
be adjourned, for any time not exceeding 7 days and from time to time until a sale is 
made, by announcement to those present at each adjournment. For sales of premises that 
the court has determined to be abandoned pursuant to section 6326, the public sale may 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT "A" to RP. 992, L.D. 1389 
be adjourned once for any time not exceeding 7 days, except that the court may permit 
one additional adjournment for good cause shown. Adjournments may also be made in 
accordance with the requirements of 12 Code of Federal Regulations, Section 1024.41 or 
any successor provision. The mortgagee, in its sole discretion, may allow the mortgagor 
to redeem or reinstate the loan after the expiration of the period of redemption but before 
the public sale. The mortgagee may convey the property to the mortgagor or execute a 
waiver of foreclosure, and all other rights of all other parties remain as if no foreclosure 
had been commenced. The mortgagee shall sell the premises to the highest bidder at the 
public sale and deliver a deed of that sale and the writ of possession, if a writ of 
possession was obtained during the foreclosure process, to the purchaser. The deed 
conveys the premises free and clear of all interests of the parties in interest joined in the 
action. The mortgagee or any other party in interest may bid at the public sale. If the 
mortgagee is the highest bidder at the public sale, there is no obligation to account for any 
surplus upon a subsequent sale by the mortgagee. Any rights of the mortgagee to a 
deficiency claim against the mortgagors are limited to the amount established as of the 
date of the public sale. The date of the public sale is the date on which bids are received 
to establish the sales price, no matter when the sale is completed by the delivery of the 
deed to the highest bidder. If the property is conveyed by deed pursuant to a public sale 
in accordance with this subsection, a copy of the judgment of foreclosure and evidence of 
compliance with the requirements of this subsection for the notice of public sale and the 
public sale itself must be attached to or included within the deed, or both, or otherwise be 
recorded in the registry of deeds. 
PARTD 
Sec. D-l. 36 MRS A §946-A, as repealed and replaced by PL 1995, c. 20, §1, is 
repealed. 
Sec. D-2. 36 MRS A §946-B is enacted to read: 
§946-B. Tax-acquired property and the restriction of title action 
1. Tax liens recorded after October 13, 2014. A person may not commence an 
action against the validity of a governmental taking of real estate for nonpayment of 
property taxes upon the expiration of a 5-year period immediately following the 
expiration of the period of redemption. This subsection applies to a tax lien recorded 
after October 13,2014. 
2. Tax liens recorded after October 13, 1993 and on or before October 13, 2014. 
A person may not commence an action against the validity of a governmental taking of 
real estate for nonpayment of property taxes after the earlier of the expiration of a 15-year 
period immediately following the expiration of the period of redemption and October 13, 
2019. This subsection applies to a tax lien recorded after October 13, 1993 and on or 
before October 13,2014. 
3. Tax liens recorded on or before October 13, 1993. For a tax lien recorded on or 
before October 13, 1993, a person must commence an action against its validity no later 
than 15 years after the expiration of the period of redemption or no later than July 1, 
1997, whichever occurs later. 
COMMITTEE AMENDMENT 
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COMMIITEE AMENDMENT.f+ to H.P. 992, L.D. 1389 
4. Disability or lack of knowledge. Disability or lack of knowledge of any kind 
does not suspend or extend the time limits provided in this section. 
PARTE 
Sec. E-l. 32 MRSA §11002, sub-§6, as amended by PL 2005, c. 475, § 1, IS 
further amended to read: 
6. Debt collector. "Debt collector" means any person conducting business in this 
State, the principal purpose of which is the collection of any debts, or who regularly 
collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be 
owed or due another. "Debt collector" includes persons who furnish collection systems 
carrying a name that simulates the name of a debt collector and who supply forms or form 
letters to be used by the creditor even though the forms direct the debtor to make 
payments directly to the creditor. Notwithstanding the exclusion provided by section 
11003, subsection 7, "debt collector" includes any creditor who, in the process of 
collecting the creditor's own debts, uses any name other than the creditor's that would 
indicate that a 3rd person is collecting or attempting to collect these debts. 
"Debt 
collector" includes any attorney-at-law whose principal activities include collecting debts 
as an attorney on behalf of and in the name of clients, except that any such attorney 
licensed to practice law in this State is subject exclusively to subchapter 2 and any such 
attorney not licensed to practice law in this State is subject to this entire chapter. "Debt 
collector" also includes any person regularly engaged in the enforcement of security 
interests securing debts, including a repossession company and a residential real estate 
property preservation provider. 
"Debt collector" does not include any person who 
retrieves collateral when a consumer has voluntarily surrendered possession. A person is 
regularly engaged in the enforcement of security interests if that person enforced security 
interests more than 5 times in the previous calendar year. If a person does not meet these 
numerical standards for the previous calendar year, the numerical standards must be 
applied to the current calendar year. 
Sec. E-2. 32 MRSA §11002, suh-§§8-A and 8-B are enacted to read: 
S-A. Residential real estate property preservation provider. "Residential real 
estate property preservation provider" means a person who regularly provides residential 
real estate property preservation services. "Residential real estate property preservation 
provider" does not include a supervised financial organization, a supervised lender, a 
person licensed by the Plumbers' Examining Board, a person licensed by the Electricians' 
Examining Board, a person licensed by the Department of Professional and Financial 
Regulation under chapter 131, a person licensed by the Maine Fuel Board or a person 
licensed by the Real Estate Commission. 
S-B. Residential real estate property preservation services. 
"Residential real 
estate property preservation services" means those services undertaken at the direction of 
a person holding or enforcing a mortgage on residential real estate that is in default or in 
which the property is presumed abandoned in entering or arranging for entry into a 
building to perform the services of winterizing the residence, changing the door locks or 
removing unsecured items from the residence. 
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COMMITTEE AMENDMENT "Pt" to HP. 992, L.D. 1389 
Sec. E-3. 32 MRSA §11017, sub-§§1 and 2, as enacted by PL 1993, c. 126, §3, 
are amended to read: 
1. Right to take possession after default. A Except in the case of a residential real 
estate property preservation provider, a debt collector acting on behalf of a creditor may 
take possession of collateral only if possession can be taken without entry into a dwelling, 
unless that entry has been authorized after default and without the use of force or other 
breach of the peace. 
2. Return of private property. A Except in the case of a residential real estate 
property preservation provider, a debt coBector shall inventory any unsecured property 
taken with repossessed collateral and immediately notify the consumer that the property 
will be made available in a manner convenient to the consumer. 
Sec. E-4. 32 MRS A §11017, sub-§4 is enacted to read: 
4. Residential real estate property preservation. A residential real estate property 
preservation provider may enter into a dwelling only if authorized by the terms of a note, 
contract or mortgage. The provider may not use force or effect a breach of the peace 
against any person. The provider shall inventory any unsecured items removed from the 
dwelling and immediately notify the appropriate consumer that the unsecured items will 
be made available in a manner convenient to the consumer. The provider shall make a 
permanent record of all steps taken to preserve and secure the dwelling and shall make 
that record and the inventory of removed unsecured items available to the consumer upon 
wri tten request. 
PARTF 
Sec. F-l. 14 MRSA §6321-A, sub-§7, ,A, as enacted by PL 2009, c. 402, §18, 
is amended to read: 
A. Assign mediators, including active retired justices and judges pursuant to Title 4, 
sections 104 and 157-B, who: 
(1) Are trained in mediation and all relevant aspects of the law related to real 
estate, mortgage procedures, foreclosure or foreclosure prevention; 
(2) Have knowledge of community-based resources that are available in the 
judicial districts in which they serve; 
(3) Have knowledge of mortgage assistance programs; ami 
(4) Are trained in using the relevant Federal Deposit Insurance Corporation 
forms and worksheets7~ 
(5) Are knowledgeable in principal loss mitigation and mortgage loan servicing 
guidelines and regulations; and 
(6) 
Are capable of facilitating and likely to facilitate identification of and 
compliance with principal loss mitigation and mortgage loan servicing guidelines 
and regulations. 
COMMITTEE AMENDMENT 
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COMMITIEE AMENDMENT ,A "to H.P. 992, LD. 1389 
The court may establish a training an orientation program for mediators and require 
that mediators receive such training orientation prior to being appointed; 
Sec. F-2. 14 MRSA §6321-A, suh-§13, as amended by PL 2009, c. 476, Pt. B, 
§7 and affected by §9, is further amended to read: 
13. Report. A mediator must complete a report for each mediation conducted under 
this section. The mcdiator's report 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 or other reasonable 
determination of net present value. If the mediation did not result in the settlement or 
dismissal of the action, the report must include the outcomes of the Net Present Value 
Worksheet or other determination of net present value. 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. The mediator's report must also include a statement of all agreements reached at 
mediation, with sufficient specificity to put all parties on notice of their obligations under 
agreements reached at mediation, including but not limited to a description of all 
documents that must be completed and provided pursuant to the agreements reached at 
mediation and the time frame during which all actions are required to be taken by the 
parties, including decisions and determinations of eligibility for all loss mitigation 
options.' 
SUMMARY 
This amendment replaces the bill. It is based on the recommendations the Attorney 
General developed through the Attorney General's working group on residential 
foreclosures. 
Part A amends the laws regarding the real estate transfer tax to ensure that the tax is 
paid on property transferred when there is a foreclosure sale, regardless of whether the 
transfer is done by deed, assignment or other method of transfer. Part A specifically 
includes assignments by the plaintiff in a foreclosure action of the rights as high bidder or 
the foreclosure judgment itself. 
Part B establishes an expedited procedure for properties that are abandoned in 
uncontested foreclosure cases. If a foreclosure plaintiff produces clear and convincing 
evidence of abandonment and the case is uncontested, the court may declare the property 
abandoned, advance the foreclosure on the docket and grant judgment for the plaintiff. In 
such cases the redemption period is shortened from 90 days to 45 days. Part B suggests 
indicia of abandonment, but does not direct the court to limit its findings to these factors. 
Upon the later of the issuance of the order of abandonment or the judgment of 
foreclosure, if the premises include dwelling units occupied by tenants as their primary 
residence, the plaintiff must assume the duties of a landlord. In addition, the plaintiff 
must notify the municipality in which the premises are located and record the order of 
abandonment in the appropriate registry of deeds within 30 days from the later of the 
order of abandonment or the foreclosure judgment. 
Part C provides that there may be only one adjournment in a foreclosure action if the 
court determined the property to be abandoned. 
The court may permit additional 
adjournments if the bank or servicer can demonstrate good cause for the adjournment or 
COMMITTEE AMENDMENT 
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COMMfITEE AMENDMENT ,~ " to HP 992, LD. \389 
in accordance with regulations concerning loss mitigation procedures in 12 Codc of 
Federal Regulations, Section 1024.41. Current law requires that the public sale must be 
held no less than 30 days and no more than 45 days after the first date of publication. 
Part C adds an exception for requirements included in 12 Code of Federal Regulations, 
Section 1024.41. 
Current law provides that, when property is acquired by a municipality for unpaid 
taxes, the new owner does not obtain marketable title until 15 years has passed from the 
time of the foreclosure. Part D shortens the challenge period from the current 15 years to 
years for property subject to tax liens recorded after October 13, 2014. For property 
subject to a tax lien recorded after October 13, 1993 and on or before October 13,2014, 
thc challenge period ends upon the earlier of the expiration of the IS-year period 
immediately following the expiration of the period of redemption and October 13, 2019. 
Part E gives the Department of Professional and Financial Regulation, Bureau of 
Consumer Credit Protection the authority to regulate residential real estate propeliy 
management providers that enter into presumably abandoned residences to winterize 
those residences, change the door locks or remove items of personal property. Part E 
further prohibits providers from breaching the peace against any person and requires 
providers to inventory personal property removed from a residence and immediately 
notify the appropriate consumer that the personal property will be made available in a 
manner convenient to the consumer. The provider must make a permanent record of all 
steps taken to preserve and secure the dwelling and must produce that record and the 
inventory of removed unsecured items upon written request of the resident. 
Part F adds standards to those required of mediators in the foreclosure mediation 
program under the Maine Revised Statutes, Title 14, section 6321-A. Part F requires 
mediators to ensure the parties appropriately determine net present value by using either 
the Federal Deposit Insurance Corporation Loan Modification Program Guide worksheet 
or other way of determining net present value that is as reasonable as the worksheet. Part 
F also requires that the mediator's report contain greater detail regarding the agreements 
made among the parties and the time frames within which the parties are required to 
provide information and reach determinations of loss mitigation eligibility. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 03113114 Mac:.. 
LD 1389 
LR 1838(02) 
An Act To Expedite the Foreclosure Process 
\ 
Fiscal Note for Bill as Amended by Committee Amendment ,A, ( Ii--7 3L}) 
Committee: Judiciary 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Minor revenue increase - Other Special Revenue Funds 
Any impact on the costs or revenues of the Bureau of Consumer Credit Protection in the Department of Professional 
and Financial Regulation are expected to be minor and can be absorbed within existing budget resources. 
LR1838(02) - Fiscal Note - Page 1 of 1