Foreclosure & Eviction Laws in Maine
Though not to the extent of some states such as California, Nevada and Arizona, Maine's legal and financial industries, as well as lawmakers, have been forced to recognize and deal with a rising tide of foreclosures. The processes of foreclosure and subsequent eviction in Maine don't differ dramatically from what is standard operating procedure for most states, though the legislature did pass a law requiring good faith mediation between lender and homeowner.
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Judicial Process
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In Maine, a foreclosure proceeds according to the process of judicial action, which simply means that the lender must institute a legal proceeding in front of the court of jurisdiction, and a judge supervises the foreclosure from beginning to end. The judicial action begins with a complaint normally prepared by an attorney. If the resident of the home in question decides to contest the action, it could take a year or longer for the legalities to play out.
Redemption Period
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Maine law provides for a 90-day time span after the foreclosure lawsuit is filed, known as the redemption period. This interval is intended to provide the homeowner time to get his finances in order and bring all outstanding mortgage payments up to date. If, during the redemption period, the lender accepts anything of value at all from the delinquent homeowner, the foreclosure process immediately ends. This has the effect of allowing the lender and homeowner, if they choose, to come to some sort of arrangement on how the mortgage deficiency might be addressed. Of course, the lender doesn't have to accept any offer of partial payment.
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Eviction
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According to Maine legal provisions, a homeowner cannot be evicted during the redemption period. However, once the gavel falls at auction and the property is sold, the former homeowner must evacuate the premises promptly. If he hasn't done so within three days, a Notice to Quit can be filed and a sheriff deputy is tasked to forcibly remove the occupant. Keep in mind that an eviction lawsuit can damage your credit. Leaving voluntarily can avoid that financial albatross around your neck.
Renters' Rights
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Renters with a valid lease agreement in place find themselves in a slightly different legal situation than the homeowner who has been foreclosed upon. Federal congressional regulations require that renters with a month-to-month agreement must be given 90 days to vacate the property. Those with a current lease are allowed to stay on the property until the end of the agreement, which might be shortened to 90 days if the buyer has plans to move into the foreclosure he just purchased.
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