Residents of Maine who are concerned about losing their homes to foreclosure should connect with The Bureau of Consumer Credit Protection. This bureau is part of the Department of Professional and Finance Regulation. It operates on a state level, ensuring that banks and other lenders follow the rules. You must know your rights and responsibilities. Many homeowners get so overwhelmed, they fail to meet their obligations, and this only worsens the situation.

Thanks to legislation enacted by this Bureau, if your lender sends out a 35-day Notice of Right to Cure Default, they have to include certain crucial pieces of information:

  1. Your right to cure your mortgage default (e.g., get current on your mortgage payments) under the terms of the mortgage and state law;
  2. A list of everything that’s past due;
  3. A list of all charges that would need to be paid to pay off the loan;
  4. Encouragement to seek help quickly and a list of options for doing so;
  5. An address, telephone number, and other information is allowing the recipient to get in touch with someone who has the authority to modify their loan to avoid foreclosure.
  6. A list of all the counseling agencies in Maine approved by the US Department of Housing and Urban Development.
  7. Recognition of the borrower’s right to seek mediation in the court system.  (For more information about the Foreclosure Diversion Program (FDP), follow this link.)

You may have noticed that the lender isn’t required to notify you of the exact dollar amount needed to cure your default. However, they DO have to send this information to the Bureau of Consumer Credit Protection. The BCCP will contact the homeowner with this and other relevant information.

Another agency that is available to help some residents of The Pine Tree State is the Maine State Housing Authority’s program, MaineHousing. They encourage residents to contact MaineHousing via the phone numbers on their website. MaineHousing representatives can help you understand how to get out from under your mortgage debt without the painful process of foreclosure being completed. They can help you investigate Special Forbearances, Loan Modifications, and Payment Plans.  They can also evaluate your eligibility for these programs, although they are only available if your lender is affiliated with MaineHousing:

Maine HOPE — this program is the HomeOwnership Protection for Unemployment plan. If you are a MaineHousing borrower and you are unable to pay your mortgage because of a job loss, this program can help.  Qualifying borrowers can get up to four payments made on their behalf, including taxes and homeowner’s insurance.

Maine Housing Home Affordable Modification Program (HAMP). HAMP is only for borrowers who are currently delinquent in their payments and at risk of foreclosure. This program reduces the total amount you owe, which lowers your monthly payment. The amount that your loan was reduced becomes a lien that is repaid by paying off your mortgage or no longer live in the home as a primary residence.