An Act to Protect Holders of Distressed Mortgages from Fraud
Maine Legislature, Session 132, LD 0403
Committee: Health Coverage, Insurance and Financial Services
Sponsors: ANKELES
Amends: 14 MRSA §6111, 14 MRSA §6321

Legislative Document
No. 403
H.P. 257
House of Representatives, February 4, 2025
An Act to Protect Holders of Distressed Mortgages from Fraud
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative ANKELES of Brunswick.
Cosponsored by Representatives: CLUCHEY of Bowdoinham, MATHIESON of Kittery.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  14 MRSA §6111, sub-§1, as amended by PL 2009, c. 402, §10, is further 
amended to read:
1.  Notice; payment.  With respect to mortgages upon residential property located in 
this State when the mortgagor is occupying all or a portion of the property as the 
mortgagor's primary residence and the mortgage secures a loan for personal, family or 
household use, the mortgagee may not accelerate maturity of the unpaid balance of the 
obligation, commence a foreclosure action or otherwise enforce the mortgage because of a 
default consisting of the mortgagor's failure to make any required payment, tax payment or 
insurance premium payment, by any method authorized by this chapter until at least 35 
days but no more than 90 days after the date that written notice pursuant to subsection 1‑A 
is given by the mortgagee to the mortgagor and any cosigner against whom the mortgagee 
is enforcing the obligation secured by the mortgage at the last known addresses of the 
mortgagor and any cosigner that the mortgagor has the right to cure the default by full 
payment of all amounts that are due without acceleration, including reasonable interest and 
late charges specified in the mortgage or note as well as reasonable attorney's fees.  If the 
mortgagor tenders payment of the amounts before the date specified in the notice, the 
mortgagor is restored to all rights under the mortgage deed as though the default had not 
occurred.
Sec. 2.  14 MRSA §6111, sub-§1-A, ¶G, as amended by PL 2015, c. 36, §1, is 
further amended to read:
G.  Where mediation is available as set forth in section 6321‑A, a statement that a 
mortgagor may request mediation to explore options for avoiding foreclosure 
judgment; and
Sec. 3.  14 MRSA §6111, sub-§1-A, ¶H, as enacted by PL 2015, c. 36, §2, is 
amended to read:
H.  A statement that the total amount due does not include any amounts that become 
due after the date of the notice.; and
Sec. 4.  14 MRSA §6111, sub-§1-A, ¶I is enacted to read:
I.  The following warning: "WARNING: Be cautious when seeking financial 
assistance, a loan modification or any other agreement to cure or work out the default.  
Criminals have been known to pose as legitimate negotiators who work with banks to 
provide assistance to distressed borrowers, but these criminals may instead take your 
money and private information without providing any assistance.  You are encouraged 
to seek help from a housing counselor who works for a housing counseling agency 
approved by the United States Department of Housing and Urban Development (HUD) 
or from an attorney licensed to practice in the State of Maine."
Sec. 5.  14 MRSA §6321, 3rd ¶, as amended by PL 2015, c. 229, §1, is further 
amended to read:
The foreclosure must be commenced in accordance with the Maine Rules of Civil 
Procedure, and the mortgagee shall within 60 days of commencing the foreclosure 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 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, including 
that the foreclosure was commenced at least 35 days but no more than 90 days after the 
date that the written notice required by section 6111 was given by the mortgagee to the 
mortgagor and any cosigner against whom the mortgagee is enforcing the obligation.  In 
order to state a claim for foreclosure upon which relief can be granted, the complaint must 
contain a certification of proof of ownership of the mortgage note.  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 plaintiff's 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 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 mortgagee 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 Certificate 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 
mortgagors, 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 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 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, 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 10 days of 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 mortgage, if any, to the 
municipal tax assessor of the municipality in which the property is located and, if the 
mortgaged premises is are manufactured housing as defined in Title 10, section 9002, 
subsection 7, to the owner of any land leased by the mortgagor.  The failure to provide the 
notice required by this section does not affect the validity of the foreclosure sale. 
SUMMARY
Under current law, when a mortgagor defaults on an obligation specified in a mortgage 
for residential property, the mortgagee may not accelerate the unpaid balance of the 
obligation or otherwise enforce the mortgage until at least 35 days after providing a written 
notice to the mortgagor, and any cosigner, of the mortgagor's right to cure the default by 
fully paying all amounts due, including reasonable interest and late charges specified in the 
mortgage or note and reasonable attorney's fees.  This bill prohibits a mortgagee from 
enforcing the mortgage, including by initiating a foreclosure action, if the notice is more 
than 90 days old.  It also requires that the written notice sent by the mortgagee warn 
distressed borrowers of potential fraudulent actors who may offer their assistance in 
negotiating with the mortgagee and recommend instead that they seek the assistance of a 
licensed Maine attorney or a housing counseling agency approved by the United States 
Department of Housing and Urban Development.