Maine Revised Statutes Title 14 Sec. 6203-E – Liability for deficiency on sale; necessity of notice; form; affidavit
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Terms Used In Maine Revised Statutes Title 14 Sec. 6203-E
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Appraisal: A determination of property value.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- in writing: include printing and other modes of making legible words. See Maine Revised Statutes Title 1 Sec. 72
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Real estate: includes lands and all tenements and hereditaments connected therewith, and all rights thereto and interests therein. See Maine Revised Statutes Title 1 Sec. 72
- Statute: A law passed by a legislature.
- Town: includes cities and plantations, unless otherwise expressed or implied. See Maine Revised Statutes Title 1 Sec. 72
No action for a deficiency may be brought by the holder of the mortgage note or other obligation secured by mortgage of real estate after foreclosure by exercise of the power of sale, unless a notice in writing of the mortgagee‘s intention to foreclose the mortgage has been served on the mortgagor or its representative in interest or the same has been sent by registered or certified mail with return receipt requested at its last address then known to the mortgagee, to such address as may be agreed upon in the mortgage, together with a naming of liability for the deficiency, in substantially the form below, at least 21 days before the date of the sale under the power in the mortgage, and an affidavit has been signed and sworn to, within 30 days after the date of delivery of the deed to the purchaser or purchaser’s agent, of the mailing of the notice. A notice mailed as aforesaid is a sufficient notice, and such an affidavit made within the time specified is prima facie evidence in such action of the mailing of such notice. [PL 2015, c. 147, §4 (AMD).]
The following form of notice and affidavit may be used and may be altered as circumstances require; but nothing herein may be construed to prevent the use of other forms:
FORM
Notice of Intention to Foreclose and of Liability for Deficiency After Foreclosure of Mortgage
To: A. B. of ………………………… Street, Town of …………………… County of ……………………….. and State of ………………………….
You are hereby notified in accordance with the statute, of my intention, on ……………………. (date of sale), to foreclose by sale under the Power of Sale for breach of condition, the Mortgage held by me on property located on ………………….. Street, Town of ……………………., County of ………………….. and State of …………… dated ……………………. and recorded in the ………………… County Registry of Deeds, Book ……………………….., Page ………………, to secure a note (or other obligation) signed by you, for the whole, or any part, of which you may be liable to me and in case of a deficiency in the proceeds of the Foreclosure Sale to hold you liable for the whole or any part thereof still remaining unpaid.
Very truly yours,
…………………………………………………………………..
(Name of holder of said Mortgage)
Affidavit
I hereby certify on oath that on the …………………. day of …………………….. 20……………….., I mailed by registered or certified mail with return receipt requested, the notice a copy of which is hereinabove set forth, direct to such person or persons at the address therein named that was the last address of such person known to me at the time of mailing or to such person or persons at the address therein named that was the person and the address agreed upon in said Mortgage.
Subscribed and sworn to before me this …………………. day of …………………….. 20……………… .
…………………………………………………………………
Notary Public
[PL 2015, c. 147, §4 (AMD).]
In the event that the mortgagee is the purchaser at the public sale, any deficiency is limited to the difference between the fair market value of the premises at the time of the sale, as established by an independent appraisal, and the sum due the mortgagee with interest plus the expenses incurred in making the sale. [PL 2015, c. 147, §4 (NEW).]
SECTION HISTORY
PL 1967, c. 424, §2 (NEW). PL 1987, c. 736, §17 (AMD). PL 2015, c. 147, §4 (AMD).