Maine Foreclosure Process

Link to Maine Foreclosure Laws

In Maine foreclosure, the redemption period takes place before the sale.

Maine Foreclosure Overview

In a Maine Foreclosure, court foreclosures (Judicial), are used. The typical timeline for the Maine foreclosure process is nine months.

Pre-foreclosure Period

Before a foreclosure can begin, a lender must deliver a Notice of Default (NOD) to the borrower.

If the borrower does not pay the full amount in default plus interest and fees within 30 days, the lender is allowed to start the foreclosure process by filing suit in court. The lender is required to notify the borrower of the foreclosure action. If there is no opposition by the borrower to the court action, there will be no hearing, and the lender will be allowed to move forward with a sale of the property.  If the borrower opposes the foreclosure, the case could go to trial.

If the court rules in favor of the foreclosing lender, the borrower has a minimum of 90 days to keep the property and stop the foreclosure proceedings by paying all amounts due.

The pre-foreclosure period usually lasts between 6 and 7 months.

Maine’s foreclosure diversion program gives borrowers the opportunity to meet with the lender and an impartial mediator to try to work out a way to keep the home.  As an alternative, the borrower may give up the home without going through foreclosure. This program is available only to owner-occupied residential real properties of no more than four units.

 

Notice of Sale & Auction

If the borrower is unable stop the foreclosure during the pre-foreclosure period, the lender then publishes a Notice of Sale (NOS), for three weeks in a local newspaper. The sale is scheduled to be between 30 and 45 days after the first publication date.

The NOS must contain the property description and the date, time, and location of the sale.

The foreclosure sale is often at the office of the foreclosure attorney, who also runs the sale. However, sales may also take place at the courthouse or even at the property. The sale may be postponed for no more than seven days at a time and the postponement must be announced at the originally scheduled sale.

At the sale, the lender may bid on the property, and typically does. The property is sold to the highest bidder. Usually, bidders are required to bring a certain deposit amount (stipulated in the notice of sale) and may pay off the balance within 30 days. After the sale and payment of the balance, the lender transfers the property ownership to the winning bidder.

Under Maine foreclosure law, the foreclosing lender can get a deficiency judgment in the same action as the foreclosure. However, the court limits the judgment to the amount established as of the sale date.

In Maine foreclosure, the redemption period takes place before the sale. After the court issues a foreclosure judgment, the redemption period is 90 days from the judgment date.

A borrower may be able to redeem the property after the redemption period expires, but before the sale takes place, if the lender allows.

 

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