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.

Judicial Foreclosure
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.

Strict Foreclosure
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