What Is Foreclosure in Maine?
Foreclosure in Maine has certain similarities to other states, including the ability to obtain a judicial foreclosure and the rights to deficiency judgments. State laws differ in terms of how mortgage companies and other lenders can retake possession of a home without need of a court order. According to the Foreclosure Law website, foreclosure in Maine typically takes 90 days from start to finish.
Other People Are Reading
-
Strict Foreclosure Regulations
-
The primary method of foreclosure in Maine is a legal procedure known as strict foreclosure. This doctrine holds that the lender retains ownership of the property until the mortgage is paid off in full. If the borrower breaks any terms of the mortgage agreement prior to the loan being paid in pull, the lender may immediately take possession of the property or move to arrange it for sale. This can be done without need of a court order.
Judicial Foreclosure
-
Maine does allow judicial foreclosure, though it is not often used since most lenders opt to use the doctrine of strict foreclosure. Judicial foreclosure requires a lender to obtain a court order to take possession of a mortgaged property. To do this, a lender has to sue the delinquent homeowner. At the subsequent court hearing a lender is required to prove the borrower's delinquency and inability to repay the debt. Once the lender is granted the right of possession, it is required to auction off the home to the highest bidder.
-
Deficiency Judgments
-
Maine foreclosure law allows the lender to pursue the borrower in civil court for the remaining balance on the mortgage after the home is sold at auction. This may mean a borrower is faced with losing his home and may have to repay his former lender thousands of dollars for the remaining balance on the mortgage. The maximum difference a lender may pursue a borrower for in Maine is limited to the fair market value of the home. If the remaining difference on the mortgage exceeds this value, this amount is expunged.
Right of Redemption
-
A homeowner in Maine is granted a very finite amount of time to attempt to retake possession of the home. A homeowner has a three-month window from the time the lender retakes possession of the property to exercise this right of redemption if the mortgage was created after 1975. The time period is extended to 12 months for all mortgages created before 1975. To exercise a right of redemption, a borrower is required to pay the entire delinquent balance on the mortgage and any applicable fees to the lender. If the lender attempts to sell the home without taking possession of the property, the borrower can file an injunction with the court to force the lender to wait the requisite time period until the borrower's right of redemption expires.
-
