Due to the provisions of Me. Rev. Stat Ann. tit. 14, § 6111, we will be modifying the foreclosure provisions of our standard FHA and second lien Maine mortgages.
The first sentence of Section 18 of Cx383 will now state the following:
“If Lender requires immediate payment in full under Paragraph 9, and after the occurrence of the conditions state in subsections (a), (b) and (c) below, Lender may bring a lawsuit to take away all of the Borrower’s remaining rights in the Property and have the property sold.”
The second paragraph will be rewritten to state the following:
“Lender may require immediate payment in full under Paragraph 9, only if all of the following conditions are met:
(a) Borrower fails to keep any promise or agreement made in this Security Instrument, including the promises to pay when due the sums secured;
(b) Lender sends to Borrower, at least 35 days before demanding immediate payment in full or otherwise enforcing this Security Instrument, a notice that states:
(1) The promise or agreement that Borrower failed to keep;
(2) The action that Borrower must take to correct that default;
(3) The right of Borrower to cure the default by full payment of all amounts that are due under the Note and under this Security Instrument, including reasonable interest and late charges specified in the Note or this Security Instrument, as well as reasonable attorney fees;
(4) At itemization of all past due amounts causing the loan to be in default;
(5) An itemization of any other charges that must be paid in order to cure the default;
(6) That if Borrower does not correct the default by the date stated in the notice, Lender may require immediate payment in full, and Lender or another Person may acquire the Property by means of foreclosure and sale;
(7) That if Borrower meets the conditions stated in Section 10 above, Borrower will have the right to have Lender’s enforcement of this Security Instrument discontinued and to have the Note and this Security Instrument remain fully effective as if immediate payment in full had never been required;
(8) That Borrower has the right in any lawsuit for foreclosure and sale to argue that Borrower did keep the promises and agreements made under the Note and under this Security Instrument, and to present any other defenses that Borrower may have; and
(9) Such other matter as is required by Maine law; and
(c) Borrower does not correct the default stated in the notice from Lender by the date stated in that notice.
Lender may also require immediate payment in full if any of the events described in Section 9(b) occur, even if the conditions stated in subsections (a), (b) and (c) above are not met.”
Section 17 of Cx488 will be entirely rewritten. The first two paragraphs will state the following:
“Except as provided in paragraph 16 hereof, after the occurrence of the conditions stated in subsections (a), (b) and (c) below, Lender may require that Borrower pay immediately the entire amount then remaining unpaid under the Note and under this Security Instrument. If all of the conditions stated in subsections (a), (b) and (c) of this Section 17 are met, Lender may do this without making any further demand for payment. This requirement is called ‘immediate payment in full.’
If Lender requires immediate payment in full, Lender may bring a lawsuit to take away all of the remaining rights of Borrower in the Property and have the Property sold. At this sale Lender or another Person may acquire the Property. This is known as ‘foreclosure and sale.’ In any lawsuit for foreclosure and sale, Lender will have the right to collect all costs allowed by law. These costs include reasonable attorneys’ fees and costs of title evidence.”
The following paragraphs will be substantially similar to the ones promulgated for Cx383 above, except that the last paragraph (“Lender may also require immediate payment in . . .”) will be absent.
The language used in these new clauses is primarily based on the aforementioned Maine law and the language used in Section 22 of FNMA Form 3020.
These changes will take effect on March 4, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
February 24, 2014
DR 108882