State Foreclosure Laws

Maine
 Attorney General's Office
State House Station 6
Augusta, ME 04333
Ph: (207) 626-8800
Fax: (207) 287-3145

Summary:

Judicial Foreclosure Yes
Non-Judicial Foreclosure No
Security Instruments Mortgage
Right of Redemption Yes
Deficiency Judgments Yes
Time Frame 90-365 days (depending on mortgage date)

Judicial foreclosure in Maine is available, but most foreclosures are based on the strict foreclosure process. Maine foreclosure civil procedure doctrine holds that the lender retains ownership of the property until the mortgage is paid in full. Therefore, if the borrower violates any condition of the mortgage, the borrower loses all rights to the property. The lender can then simply take possession of the property.

If the mortgage was written prior to 1975, the borrower has three months to redeem the property. Post 1975 mortgages, allow the borrower a twelve month redemption period.

The lender must file an initial suit for an order of sale, if they wish to sell the property and then wait until the redemption period has expired. The sale can then be conducted in accordance with instructions from the court.

The notice of sale must be mailed via ordinary mail to the borrower, and published weekly in a newspaper of general circulation for three successive weeks, the first publication not more than 90 days after the expiration of the redemption period. The public sale must be held not less than 30 days, nor more than 45 days after the first publication of the notice.

The lender may sue for a deficiency judgment, but such deficiency is limited to the difference between the sale price, and the appraised value of the property.


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