An Act To Protect Holders Of Distressed Mortgages From Fraud

LD 403 requires Maine mortgage lenders to provide borrowers with written notice at least 35 days before initiating foreclosure due to payment defaults on residential mortgages. The notice must explain the borrower's right to cure the default by paying overdue amounts (including interest, fees, and attorney costs) and include a warning about fraudsters posing as legitimate negotiators who steal money and personal information. It also mandates that the notice state the total amount due excludes future payments and references available mediation options to avoid foreclosure. This law directly affects Maine homeowners facing mortgage distress, aiming to prevent fraud and clarify their rights during financial hardship.