Maine Foreclosure Timeline: Homeowner’s Handbook

There are 6 key stages to a Maine foreclosurePhoto byApple Nests, LLC

Navigating the foreclosure process in Maine can be a daunting experience. The first thing a homeowner should know is that Maine is a “judicial state” so if a lender wants to foreclose on a property, they must file a lawsuit and obtain a court order to do so. The court oversees the entire foreclosure process to ensure it follows state law and protects the rights of both the homeowner and the lender.

Foreclosure is a journey that requires understanding the key steps and timeline involved. From start to finish, the foreclosure process in Maine generally takes 10 to 16 months. This timeline can vary based on court schedules, legal complexities and other factors that may arise during the legal process. This article aims to demystify the process, providing a clear timeline from the initial stages to the final auction sale.

The Six Key Stages

1. Missed Payments and Notice of Default:

The process begins when a homeowner misses mortgage payments. After a period, typically 90 days, the lender issues a notice of default, alerting the homeowner of the delinquency and the intent to foreclose if payments are not made current. The homeowner then has 35 days to catch up on all overdue payments.

2. Foreclosure Complaint and Summons:

If the homeowner fails to resolve the default, the lender files a foreclosure complaint with the court. The homeowner is then served by the local Sheriff with official documents, marking the formal start of the foreclosure proceedings. The documents contain the complaint, explaining the foreclosure details, and a summons, which gives important information such as the court location, upcoming court dates and where to file a response.

It’s critically important to file an official written response and mediation request so that the court and the lender understand that the foreclosure is not being ignored. Maine law makes this part easy for the homeowner - along with the complaint and summons, the lender must provide an Answer form and envelope. If a homeowner does not file an answer and mediation request within 20 days of receiving the summons, they will lose certain rights to save their home.

3. Mediation:

The Foreclosure Diversion Program is a statewide law that mandates mediation in foreclosure cases, offering a chance for homeowners and lenders to find alternatives to foreclosure. The mediation session includes the homeowner, the lender, their respective attorneys, and a neutral mediator. The parties may reach an agreement to modify the mortgage terms, establish a repayment plan, or explore other loss mitigation options. If an agreement is not reached, the foreclosure process continues and the case is scheduled for trial.

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4. Foreclosure Verdict:

The case is concluded in one of two ways:
Dismissal: This is when the case is canceled. Parties can agree to ask for a case to be dismissed, or a judge can order a dismissal when one party asks for it and the judge agrees that dismissal should be granted.

Judgment: After a trial, the court orders judgment for the plaintiff or judgment for the defendant. The party against whom judgment is entered can file an appeal within 21 days of entry of judgment. The parties can also agree to a judgment (a "Stipulation to Judgment"), which cannot be appealed. (Foreclosure: State of Maine Judicial Branch)

If there is no appeal, or if the appeal fails, the property is then scheduled for a public auction, typically within 45 days of the judgment.

5. Redemption Period:

Once the judgment for the lender has been entered and any appeals filed for have failed, the homeowner has 90 days to redeem their property. This period of redemption gives the homeowner one final chance to reclaim their property by paying the full amount of the judgment which includes the full sale price plus all additional fees associated with the foreclosure. During this time, the homeowner may remain in the home.

6. Eviction and Sale:

If the homeowner does not redeem the property, the lender can then take possession of the property - evicting anyone who may still be living there - and go forward with a public sale. It can take as little as 48 hours for an eviction to take place. Leading up to the auction, the lender must publish a notice of sale in a newspaper for three weeks and within 30 calendar days of the sale. They must also mail the notice to everyone who appeared in the foreclosure action.

If the property sells for less than what is owed, the previous homeowner may still be on the hook for the remaining balance. The lender can get a deficiency judgment against them and use standard collection techniques such as garnishing wages, freezing a bank account or attaching a lien to property.

Key Takeaways

Act Early: Homeowners should seek legal advice as soon as they face financial difficulties to explore options and potentially avoid foreclosure.

Understand Your Rights: Knowing the steps and timelines can empower homeowners to make informed decisions throughout the process.

Mediation Matters: Engaging in mediation can provide alternatives to foreclosure and should not be overlooked.

The entire process can take several months to over a year, depending on various factors, including court schedules and the homeowner's actions. Foreclosure is a challenging process, but with the right knowledge and guidance, homeowners can navigate it more effectively. Remember, the sooner you act, the more options you may have to resolve the situation. If you're facing foreclosure in Maine, it’s important to seek legal advice from a foreclosure attorney to understand your rights and options.

⬇️ Want to know which States are judicial and which are nonjudicial? ⬇️

Judicial and nonjudicial States of the USPhoto byApple Nests, LLC

Thank you for reading!

Apple Nests is a woman-owned, real-estate problem-solving company. We specialize in helping homeowners prevent foreclosure through various creative methods. We are not attorneys nor CPA’s. This information is not legal advice.

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Sources:

What is Foreclosure? | Bureau of Consumer Credit Protection (maine.gov)
Foreclosure: State of Maine Judicial Branch
Foreclosure Laws and Process in Maine | NoloChart: Judicial v. Nonjudicial Foreclosures | Nolo

Disclaimer: The advantages and drawbacks outlined in this article are not exhaustive, and there may be additional factors to consider. Homeowners facing foreclosure or financial difficulties should seek guidance from their own legal advisor or real estate professional before entering into any legal contract or agreement. Every homeowner's situation is unique, and the suitability of these methods may vary based on individual circumstances and legal considerations.