Maine Foreclosure Law Summary
Stop Maine Foreclosure
- 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.
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.
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
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.
on Maine foreclosure laws.