LePage signs law to improve foreclosure process
Gov. Paul LePage signed a bill into law last week that will strengthen the role of mediators in Maine’s foreclosure process and expedite procedures to deal with abandoned properties.
LD 1389, sponsored by Rep. Jarrod Crockett, R-District 91, was drafted by Maine Attorney General Janet Mills after a six-month study of the home foreclosure process. It had received unanimous approval from the Judiciary Committee earlier this spring.
“The data we collected shows that the housing crisis is still rippling through Maine. Maine courts saw 4,756 foreclosure filings in 2013, up from 4,339 the year before,” Mills stated in a Thursday press release announcing the governor’s signing. “We need a legal framework that works efficiently but is responsive to the individual needs and interests of homeowners.”
The AG’s press release stated the new law also would:
- Shorten the challenge period from the current 15 years to five years for property subject to municipal tax liens recorded after Oct. 13, 2014.
- Authorize the Bureau of Consumer Credit Protection to regulate property preservation entities operating on behalf of lenders.
- Strengthen standards and training for foreclosure mediators.
- Protect funding for housing counselors, a critical part of the foreclosure process, by closing a loophole that allowed foreclosing banks to avoid paying the full real estate transfer tax when the transfer was done with an affiliated entity.
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