A Maine supreme court has ruled that foreclosure proceedings are limited to one attempt, according to a report. While foreclosure may be a long and drawn out process, there could be new hurdles to surmount in the future.
Recently, Fannie Mae attempted to initiate a second foreclosure proceeding on a family located in Maine. The family first bought the property in 2004 for $127,920, and initial foreclosure proceedings were filed in 2011. According to the report, lawyers representing the GSE failed to respond to the judge’s orders, and in result the judge dismissed the case.
The GSE attempted to initiate a second foreclosure proceeding, but the family fought the ruling, stating that the second suit was no different than the first. The court sided with the family.
Default in rural Maine is a deep seeded issue due to industrial economies, according to the report. The family’s property value fell by over 70 percent, putting them deep underwater.
In response to the decision, the family’s attorney issued this statement, "It reinforces case law that says you really get only one bite of the apple," said James Cloutier.
According to the report, Fannie Mae did not return a call for comment.