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.

Statutes affected:
Bill Text LD 403, HP 257: 14.6111, 14.6321