Quick Facts

–  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.

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More information  on Maine foreclosure laws.

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