- 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 (pre-1975 mortgages) or a twelve (12) month (post-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.
More information on Maine foreclosure laws.
