Maine Foreclosure Law Summary 
- 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.
Judicial Foreclosure
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.
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 it's sale.
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.
More information on Maine foreclosure laws.
