Maine Foreclosure Law
Maine’s foreclosure methods are either judicial or strict foreclosure process. However, judicial foreclosures are resorted to only in special circumstances, the primary and most often utilized is the strict foreclosure. Deficiency judgments are allowed 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.
Strict Foreclosure
Based on Maine Foreclosures Rules of Civil Procedure, it is presumed that the lender is the owner of the property until after the mortgage has been paid in full. Thus, if the borrower breaches any conditions established in the mortgage prior to its completion, he or she automatically loses any right to the property and the lender would either take possession of the property or arrange for its sale.
A complaint should be filed within the registry of deeds in which the mortgage deed is or by law ought to be recorded and such recording thereafter constitutes record notice of commencement of foreclosure. The complaint must include information such as the amount due on the mortgage, state the condition broken and by reason of such breach demand a foreclosure and sale.
The court shall determine whether there has been a breach of condition in the plaintiff’s mortgage and if the court determines that such a breach exists, a judgment of foreclosure and sale shall be issued provided that if the mortgagor or borrower fails to pay the sum due and payable including interest within the period of redemption, the lender shall proceed with the sale, however, if they complied with the court’s order for payment, the lender shall discharge the mortgage and file a dismissal of the action for foreclosures with the clerk of court.
On mortgages executed prior to October 1, 1975, the period of redemption shall be one year from the date of the judgment. On mortgages executed on or after October 1, 1975, the period of redemption shall be ninety (90) days from the date of judgment. In either instance, the redemption period shall begin to run upon entry of the judgment of foreclosure, provided that no appeal is taken.
Upon expiration of the period of redemption and the borrower still fails to redeemed the mortgage, any remaining rights of the borrower to possession terminates and the lender shall sale the property upon publication once for three (3) consecutive weeks in a newspaper of general circulation in the county, the first publication to be made not more than ninety (90) days after the expiration of the period of redemption. The public sale must be held not less than thirty (3) days nor more than forty-five (45) days after the first date of the publication.
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