Maine Foreclosure Laws

Maine uses judicial (also known as in-court) foreclosure procedures. Most Maine foreclosure processes take approximately nine months.

Pre-Foreclosure

Before filing a foreclosure, the lender must have the borrower served with a default notice that allows the debtor one last chance to pay the amount in default. The debtor is usually given thirty days to pay this amount along with interest and any associated costs. If the debtor does not pay this amount within thirty days, the lender can begin foreclosure. This process begins with the lender filing a complaint in court and alerting the debtor of the court action. If the debtor contests the foreclosure, there is a hearing and the case might go to trial. If the court rules against the debtor, the debtor can still avoid foreclosure by paying all the money due within ninety days of judgment. Between the notice of default and the end of the ninety days the debtor has to repay the debt, the pre-foreclosure period in Maine typically lasts between six and seven months.

Notice of Auction

If the debtor cannot stop foreclosure while the property is in pre-foreclosure, the lender moves to auction the property to recoup the money lost on the default. Before this can take place, the notice of auction (which is also known as the notice of sale) must be published. For three weeks, the lender must publish the notice in a local newspaper. This notice must include the details of the foreclosure auction (including the location, date, and time of the sale), the deposit amount required to buy the property, as well as a description of the property. The auction cannot take place sooner than thirty to forty-five days after the first notice is published in a local newspaper. If the sale must be postponed, this must be announced.

Foreclosure Sale

The Maine foreclosure sale is often overseen by the foreclosure attorney and many sales are in fact held in the attorney's office, although they can also take place at the property or at the courthouse. The highest bidder wins the property and must pay off the bid amount within thirty days of the auction date. One the bid amount is paid, the winning bidder is granted ownership of the property.