Maine Foreclosure Law

Maine foreclosures law accepts judicial foreclosure only. Non-judicial foreclosure has no acceptance in Maine foreclosure law. In Maine State timeline of the foreclosure process typically involves 90 days. Foreclosure sale depends on mortgage only as primary security instruments; the deed of trust has no acceptance in Maine foreclosure. Maine foreclosure law permits right of redemption. Deficiency Judgments are also allowed by Maine foreclosure law.

The foreclosure process in state of Maine may be worked out by following judicial foreclosure on mortgages as primary security instrument in default.

Judicial Foreclosure
The judicial foreclosure process requires filing of a lawsuit by lender to obtain a court order to foreclose on a particular property. Judicial foreclosure process is normally used when “no power of sale” is there in the mortgage or deed of trust. A “power of sale clause” in a deed of trust or mortgage empowers lender to sale or transfer of land as summarized by the terms of that clause.

Though in Maine Judicial foreclosure method is used but it is mostly exercised in special circumstances. Strict foreclosure is primarily used method of foreclosure in Maine.

Strict Foreclosure

• Maine’s foreclosure doctrine depicts the strict foreclosure as that the lender owns the property awaiting the mortgage has been paid in full.

• Borrower will loose any rights to the property with the breach of the conditions established in the mortgage prior to the full payment of loan; consequently lender will either take control of the property or arrange for its sale.

• In any case, the borrower has whichever a three (3) month (post-1975 mortgages) or a twelve (12) month (pre-1975 mortgages) redemption period.

• Lender must hold possession of property until the entire redemption period to finalize the foreclosure, In case the lender has taken possession of the property.

• If the lender is intended towards sale instead of taking procession in case lender must file an initial suit for an order of sale ,after that wait for the expiry of redemption .

The lender may file for deficiency judgment limited to the difference between the fair appraised market value and the balance of the loan in default.