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Brock & Scott COVID-19 Alert – Maine Governor Unveils New Actions to Protect Housing

On April 16th, Maine Governor Janet Mills unveiled a series of actions geared towards keeping Maine residents in their homes during the COVID-19 pandemic. A summary of the relevant actions is below.

On April 16th, Maine Governor Janet Mills unveiled a series of actions geared towards keeping Maine residents in their homes during the COVID-19 pandemic. A summary of the relevant actions is below.
 
An Order Regarding Unlawful Evictions, Writs of Possession and Initiation of Eviction Proceedings
 
Governor Mills signed an Executive Order regarding eviction proceedings that went into effect immediately and expires 30 days after the termination of the COVID-19 state of emergency. The Maine Judicial Branch had already suspended all eviction matters through May 1st. This Order prohibits service of any writ of possession that was issued by the courts prior to March 18th, the date the Judicial Branch issued their initial suspension. This suspension solely applies to evictions for non-payment of rent where the delinquency is no greater than two months.
 
The Order also revises the notice requirements set forth in 14 M.R.S. §6002, as applied to a landlord whose only reason for evicting a tenant is non-payment of rent and such late payment is due to loss of income caused by COVID-19:
 

  1. The provision in the first paragraph of 14 M.R.S. §6002 requiring a landlord to give a 30-day notice to the tenant is extended to 60 days; and

  2. The provision of 14 M.R.S. §6002(1)(C) requiring a landlord to give a 7-day notice to the tenant is extended to 30 days.

 
Letter to Financial Institutions
 
Governor Mills also sent letters to financial institutions discouraging them in “the strongest possible terms” from initiating any residential and commercial foreclosures and further requesting that they pause any foreclosures in progress. Specifically included in her letter was also a request to cease sending notices to cure during the federal moratorium imposed by the CARES Act, regardless of whether it is a federally backed mortgage loan.
 
Currently the Maine courts are accepting filings in foreclosure matters but they have postponed all hearings through May 1st and stated that they expect this postponement to be extended. Although Governor Mills' letter is not an official order and may not legally prevent financial institutions and servicers from proceeding on foreclosures or sending notices to cure, it is not clear how Maine judges will treat notice to cure letters sent during this time. If you send a letter during the moratorium and then file a complaint for foreclosure based on that letter, it is possible a Maine judge may take issue with the timing of the letter. It is also not yet clear how title insurers will address foreclosures where actions were taken during the moratorium.

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