Stop Foreclosure in Maine

 


How to Stop Foreclosure in Maine

Foreclosure is one of the most dreadful words in the vocabulary of home owners because they know for a fact what it can do to their homes. Both through judicial and non-judicial means, homeowners can be issued a notice of default or foreclosure due to their inability to pay their dues on time.

When you are behind your mortgage payment, or your payment for the money that you borrow to purchase a home, then chances are, a notice of default will be sent to you. The process is pretty simple, all you have to miss out is one single payment and you will immediately be sent this type of notice. This is because more and more people find themselves troubled when it comes to paying up. The thing is, once you are issued this type of notice, you will no longer be allowed to enter your property.

The two processes for foreclosure are judicial and non-judicial; the first one being connected with the jurisdiction of the court, while the latter does not. Both types of processes sell the home to other owners on different terms depending too on the situation and this is technically the reason why such a thing should be avoided because it can worsen a lot in no time.

Once the property is already sold to another owner because the current home owner can no longer pay for it, it would be have to ensure that the amount of money previously mortgaged is still paid up. Otherwise the responsibility to meet the same amount would be left on the hands of the lender.

If you think that you are already freed of the danger of having to pay up your dues just because someone already bought your home, then you are wrong. Know that this type of incident is reflected in your records thus making it impossible for you to apply for loans and mortgages in the future.

Synopsis of Maine Foreclosure Laws

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

In Maine, lenders may foreclose on mortgages in default by using either a judicial or strict foreclosure process.

Judicial Foreclosure

Although Maine allows lenders to pursue foreclosure by judicial methods, which involves filing a lawsuit to obtain a court order to foreclose, it is only used in special circumstances. The primary method of foreclosure in Maine is strict foreclosure.

Strict Foreclosure

The strict foreclosure process is based on Maine’s foreclosure doctrine in which the lender owns the property until the mortgage has been paid in full. If the borrower breaks any of the conditions established in the mortgage prior to the time the loan is paid in full, he or she will lose any right to the property and the lender will either take possession of the property or arrange for it’s sale.

In either case, the borrower has either a three (3) month (post-1975 mortgages) or a twelve (12) month (pre-1975 mortgages) redemption period. If the lender has taken possession of the property, they must hold possession of it for the entire redemption period to finalize the foreclosure. If the lender chooses to sell the property without taking possession of it first, they must file an initial suit and then wait until the redemption period has passed to sell the property by special procedures set forth by the court.

The lender may file a for a deficiency judgment, but it is limited to the difference between the fair market value, as determined by an appraisal, 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.

Where togo to for Foreclosure Help

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

Stop Foreclosure Early

Harborview Properties
207 712 4796
47 India Street
Portland, ME

Dedicated Mortgage Associates LLC
207-571-8270
1168- A Maine Street
Waterboro, ME

TD Bank
207-368-4363
76 Main Street
Newport, ME

Bank of America – Armory St
800.432.1000
21 Armory St
Augusta, ME

TD Bank
207-799-8189
Millcreek Shopping Center, 180 Waterman Drive
South Portland, ME

Harborview Properties
207 712 4796
47 India Street
Portland, ME

Wells Fargo Home Mortgage
207-828-9012
144 US Route 1
Scarborough, ME

TD Bank
207-627-4261
9 Leach Hill Road
Casco, ME

Bank of America – South Sanford
800.432.1000
1364 Main St
Sanford, ME

TD Bank
207-834-6181
62 W Main Street, Suite 104
Freeport, ME