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Consumer Credit Protection
OTHER PFR AGENCIES
NEW FORECLOSURE LAW - FREQUENTLY-ASKED QUESTIONS (FAQ’S)
New laws to reduce foreclosures in Maine will take effect June 15, 2009. These changes affect the way lenders and servicers must conduct foreclosure activity. It applies to all foreclosure actions except ones in which a foreclosure date had already been published as of the day the Governor signed the bill into law. A copy of Public Law 402 can be found here.
These questions and answers are designed to provide guidance for consumers and lenders in order to better understand, comply with or enforce the new state laws.
1. What is the effective date of the law? As emergency legislation, the law becomes effective immediately upon the Governor’s signature.
2. What changes must lenders be aware of? Lenders must be aware of several changes. They include:
3. What will the Bureau of Consumer Credit Protection do with the information?
The bureau is required to send information to those consumers who have received Notices of Right to Cure, providing additional information, and encouraging them to contact the bureau at its toll-free new consumer foreclosure prevention hotline, 1-888-664-2569 (1-888-NO-4-CLŌZ)
4. Must a lender take any additional new steps when foreclosing a residential (owner-occupied, 1-4 unit) mortgage?
Lenders must include a new cover document with each foreclosure summons and complaint. This document is a one-page form that the consumer can use to respond to the Complaint, and to request court-supervised mediation. The final form has now been posted (see question 6 below).
The lender must also provide a pre-addressed envelope that the consumer can use to file his or her Answer with the court.
If the consumer requests mediation, that mediation is mandatory on lenders. The lender must provide an individual at the mediation proceeding who is authorized to enter into loan modification agreements.5. What provisions, if any, apply to foreclosing on a commercial, multi-unit dwelling?
Foreclosure attorneys should carefully read the new law, since it requires that certain notices be provided to tenants in an apartment building.
Yes. At this time (November/December 2009), lenders can use one of two different versions of the form. The first version, found here (Version 2009), has been in use since August, 2009 and can be used for all foreclosure summonses and complaints served on homeowners on or before December 31, 2009. A newer version, which can be used now and into 2010, and which will become mandatory on January 1, 2010, is found here (Version 2010). We recommend that all lenders and attorneys transition to the Version 2010 as soon as practicable, but no later than the end of December.
Loan Officer Information
Educational Requirement Section
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