In Maine, foreclosure is a kind of lawsuit usually brought by a lender to sell a debtor's (property owner's) home to please a debt. In a foreclosure case, the house owner is the "defendant" and the lender is the "complainant."

A foreclosure case generally takes a number of months or more to complete. Simply filing a case does not permit a loan provider to take belongings of the home or require a property owner to vacate. There are frequently methods to settle the case before it is finished.

If you are a Maine homeowner who resides in a 1-4 unit residential or commercial property that remains in foreclosure, you have the right to request mediation through the Foreclosure Diversion Program.

Foreclosure Step by Step

Step 1: Notice of Default Letter

If a house owner falls back in paying the mortgage, the lending institution sends a letter to the house owner saying how much must be paid by a specific due date (giving a minimum of 35 days) in order to get back on track and avoid foreclosure. This is called a "notification of default and right to cure" letter (default letter). See 14 M.R.S. § 6111.

Please note: if the homeowner tries to pay after the deadline, the amount needed to capture up will be more than the amount the default letter needs since more will be required after the due date. Even if the lending institution accepts the default letter amount after the due date, the property owner will still lag in regular monthly payments and/or the overall quantity due.

Step 2: Foreclosure Summons & Complaint

If the homeowner does not catch up by the deadline in the default letter, the loan provider might begin a foreclosure action by "serving" the house owner with a foreclosure summons and grievance. The property owner may be served personally by a sheriff, or by mail (if the property owner indications and returns an invoice of the mailed problem).

Once a foreclosure case has started, if the lender accepts any payment from the homeowner, even for less than the full quantity owed, the foreclosure is cancelled (unless the celebrations agree in writing that it is not). Because of this, it is not unusual for homeowners who attempt to send out in checks after they have actually been served to have those checks returned. See 14 M.R.S. § 6321 ¶ 5.

The foreclosure court papers consist of crucial details, including:

- The location and address of the court where the case has been submitted