How foreclosure works in Maine
By Rent to Own Guide · Published · How we research
Short answer
| Process | Judicial for owner-occupied homes (§ 6321) |
|---|---|
| Before filing | 35-day notice of the right to cure (§ 6111) |
| Mediation | Foreclosure Diversion Program on request; no judgment until the mediator reports |
| Redemption | 90 days after the judgment, before the sale (§ 6322) |
| Sale | Run by the lender, 30 to 45 days after the first of 3 weekly ads (§ 6323) |
| Deficiency | Allowed; limited to debt minus appraised value if the lender buys (§ 6324) |
| Pre-foreclosure purchases | Licensing, 5-day cancellation and more for lease-back deals (32 M.R.S. ch. 80-B) |
How a Maine foreclosure works
Maine home foreclosures go through court: the lender files a civil action in Superior or District Court (14 M.R.S. § 6321). The out-of-court power of sale is limited to business, commercial and agricultural mortgages, and can't be used on an owner-occupied home (§ 6203-A). For an owner-occupied home:
- 35-day right to cure. Before it can accelerate the loan, the lender must send a notice giving the owner at least 35 days to catch up on the missed amounts. Paying in time restores the loan “as though the default had not occurred” (§ 6111).
- The lawsuit. Within 60 days of filing, the lender records the complaint at the county registry of deeds (§ 6321). The owner has 20 days to respond and ask for mediation (Maine Judicial Branch).
- Mediation. When the owner asks, the court refers the case to the Foreclosure Diversion Program, and no final judgment can issue until the mediator reports (§ 6321-A).
- Judgment, then 90 days to redeem. For mortgages signed since October 1, 1975, the owner has 90 days after the judgment to pay the full amount and keep the home, and can stay in it during that time (§ 6322).
- The public sale. The lender advertises the sale once a week for 3 weeks in a county newspaper, and holds it 30 to 45 days after the first ad (§ 6323).
Buying at a Maine foreclosure sale
The lender runs the sale and sells to the highest bidder; the deed conveys the home free of the interests of the parties named in the lawsuit. The lender can bid too, and the sale can be postponed for up to 60 days by announcement at the sale (§ 6323). Deposit and payment terms are in each sale notice. By the time a Maine home reaches auction, the 90-day redemption period is over, so the sale is final once the deed is delivered.
Buying a pre-foreclosure home in Maine
Maine's Foreclosure Purchasers Act covers an owner-occupied home (one to four units) as soon as any loan payment is delinquent, before a lawsuit (32 M.R.S. § 6192). It targets a “foreclosure reconveyance”: you buy the home and the owner gets an interest back that lets them stay, such as a lease, an option to purchase or a contract for deed. For those deals:
- Anyone in the business of foreclosure purchasing needs a state license (§ 6193).
- The written contract, in 12-point bold type, must reach the owner at least 3 business days before closing and must state: “YOU ARE TRANSFERRING TITLE TO YOUR HOUSE” (§ 6194).
- The owner can cancel until midnight of the 5th business day after signing, or until 8 a.m. on the last day of the redemption period if that comes first (§ 6195).
- You must check that the owner can afford the buy-back (presumed at or under 60% of gross monthly income), close in person with an independent closing agent, and get a nonprofit counselor's certification that the owner was counseled. If you don't sell the home back, you must pay the owner at least 82% of its fair market value, less mortgage payoffs, within 150 days after they leave. Door-to-door solicitation is banned (§ 6198).
An outright purchase where the owner moves out and keeps no interest isn't a reconveyance under that definition. Have a Maine real estate attorney review any deal with an owner who is behind on payments.
Where to find Maine foreclosure records
- Registries of deeds: foreclosure complaints are recorded in the county registry. The statewide registry portal covers all 17 county registries; the first 400 pages each year are free.
- Court records: re:SearchMaine is free to register, but the public can view a foreclosure case remotely only after a judgment for the lender. For earlier signals, use the registry of deeds.
- Sale ads: the Maine Press Association posts statewide legal notices free at Mainenotices.com.
- Listings: Maine pre-foreclosures on Foreclosure.com and Maine foreclosures. Check the registry before acting on a listing.
If the home in foreclosure is yours
Ask for mediation within 20 days of getting the court papers, and still ask in writing if you've missed it. The court says that since the program began in 2010, “approximately 60% of cases mediated have been dismissed (ended without a foreclosure)” (Maine Judicial Branch). Maine's Bureau of Consumer Credit Protection runs a foreclosure prevention hotline at 1-888-664-2569, and warns against anyone who says they can “save” your home if you sign over the deed (Maine BCCP).
If the lender buys the home at its own sale, any deficiency is limited to the debt minus the home's appraised fair market value, and a lender that files its report of sale late loses the right to a deficiency (§ 6324). Our homeowner options guide covers the main choices.