Maine Foreclosure Process and Laws
Quick Facts About the Foreclosure Process in Maine
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: No
Primary Security Instruments: Mortgage
Timeline: Typically 90 days
Right of Redemption: Yes
Deficiency Judgments Allowed: Yes
Lenders in the State of Maine who wish to foreclose a mortgage in default can use a judicial or strict foreclosure process.
The main method of foreclosure in Maine is the strict foreclosure process. But the judicial process of obtaining a court order to foreclose may also be used in special circumstances.
In the strict foreclosure process, the property is under ownership of the lender until the borrower settles all of his debts. If any of the conditions of the agreement is broken by the borrower before the debt is paid in full, the property will then be the permanent owner of the lender, or he can put it up for sale.
In any case, the borrower can either have a 3-month (post-1975 mortgages) or 12 month (pre-1975 mortgages) redemption period. If the lender has taken possession of the property, he must hold on to it during the redemption period to finalize the foreclosure. Filing an initial suit and waiting for the redemption period to pass is needed if the lender wishes to sell the property without taking possession of it.
A deficiency suit may be filed by the lender, but it is only limited to the fair market price and the balance of the loan in default.
Foreclosure Avoidance Counseling
HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.
If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.
Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.
Bangor Field Office
Margaret Chase Smith Federal Building
202 Harlow St., Suite 101
Bangor, ME 04401-4919
Phone: (207) 945-0467
Fax: (207) 945-0533
TTY: (207) 945-0401
Jurisdiction: State of Maine
William D. Burney
Field Office Director
Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday