STATE FORECLOSURE PROCEDURES - MAINE
MAINEConveyance is by warranty or quitclaim deed. Mortgages are the security instruments. Foreclosures may be initiated by any of the following: an act of law for possession; entering into possession and holding the premises by written consent of the mortgagor; entering peaceably, openly, and unopposed in the presence of two witnesses and taking possession; giving public notice in a newspaper for three successive weeks and recording copies of the notice in the Registry of Deeds, and then recording the mortgage within 30 days of the last publication; or by a bill in equity (special cases). In every case, the creditor must record a notice of foreclosure within 30 days. Judicial foreclosure proceedings are also available. Redemption periods vary from 90-365 days depending on the method of foreclosure. - 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 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.
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