Foreclosure process in Maine: steps, timeline and help

Is foreclosure judicial in Maine?

Mostly, yes. A mortgagee files a civil action in the Superior Court or District Court where the property sits (§ 6321). The complaint must show the plaintiff owns the mortgage note and that the right-to-cure notice was strictly followed.

There is a narrow non-court path. A mortgage with a power of sale can be enforced without a lawsuit, but § 6203-A limits that route to mortgages granted by a corporation, partnership, limited liability company or trustee of a trust. A home mortgage signed by an individual follows the court route. For a power-of-sale case the notice must be published in a newspaper once a week for 3 weeks, the first at least 21 days before the sale, and a copy must be served or mailed to the mortgagor at least 21 days before the sale.

What are the steps and deadlines?

The statutes do not give one total time from first missed payment to sale, because the lender’s timing and court scheduling vary. Courts can also extend the sale deadlines for good cause.

What is the right of redemption?

Until the redemption period ends, the owner can pay the amount the court found due, with interest, and the lender must then discharge the mortgage and dismiss the case. For a home covered by the right-to-cure law, a writ of possession cannot issue until the redemption period ends. Once it ends, the owner’s remaining rights to possession end and the lender can proceed to sale (§ 6323).

Accepting a payment after the case starts and before redemption ends waives the foreclosure, unless the owner signed a written agreement to the contrary or the payment is returned within 10 days (§ 6321). A lender and owner can also agree to catch up on payments while the case is paused.

Can the lender seek a deficiency?

Yes. Section 6324 says any deficiency is assessed against the mortgagor and the court issues an execution for it. Three limits apply:

• If the lender buys the property at the sale, the deficiency is capped at the difference between the property’s fair market value at the time of sale, set by an independent appraisal, and the court-set debt plus sale expenses.
• If the lender is late filing the report of sale, it has no right to a deficiency judgment.
• Any surplus goes to the owner. If the owner never appeared in the case, the clerk holds it for 6 months before it moves to the state.

What mediation and help exist?

• Court mediation. For an owner-occupied home of up to 4 units that is the owner’s primary residence, § 6321-A creates a mediation program. The lender’s representative with authority to settle must attend. Financial information shared in mediation is confidential. Taking part does not waive any rights.
• State bureau. The Bureau of Consumer Credit Protection runs the foreclosure prevention program that receives lender reports and contacts owners.
• MaineHousing. The agency’s mortgage help page points to free HUD-approved housing counselors and lists options such as payment plans, forbearance, modification, short sale and deed in lieu. Some programs apply only to MaineHousing borrowers.
• Scam warning. The statutory cure notice itself warns that criminals pose as negotiators; it advises a HUD-approved counselor or a Maine attorney.

For other Maine law topics, see seller disclosure and do you need an attorney.