How foreclosure works in Maine

The notices you will receive in Maine, in order

1. Notice of right to cure

   Sent by the lender by certified and first-class mail, at least 35 days before it can sue

   This letter lists exactly what you must pay to catch up and tells you that mediation and free counseling may be available. Read it closely and call the state Foreclosure Prevention Hotline right away, because paying after the deadline usually costs more.

   14 M.R.S. § 6111

2. Letter from the Bureau of Consumer Credit Protection

   Mailed by the state soon after the lender reports your notice of right to cure

   The lender must report each notice of right to cure to the Bureau, and the Bureau then mails you information about free help. It is not a scam letter. It points you to the same free hotline and housing counselors.

   14 M.R.S. § 6111(3-A), (4-A)

3. Summons and complaint for foreclosure

   Served by a sheriff or by mail with a signed receipt, after the cure period ends

   This is the lawsuit. It must show the lender owns the note and that it strictly followed the right to cure rules. The papers list the court, the clerk's phone number, the amount claimed and a response form.

   14 M.R.S. § 6321

4. Response to Complaint and Request for Mediation (form BCCP-2010)

   Comes with the complaint; return it within 20 days

   This one-page form is attached to the front of the complaint. Filling it out and returning it to the clerk counts as your answer and as your request for mediation. If you are late, the court says to send it anyway.

   14 M.R.S. § 6321-A(2)

5. Notice of Informational Session and mediation session

   Mailed by the clerk after you ask for mediation

   You must attend an Informational Session, where a judge explains the process and a housing counselor explains how to work with your lender. Then you meet the lender with a neutral mediator. After each session the mediator writes a report, so read it before you sign it.

   14 M.R.S. § 6321-A

6. Judgment of foreclosure and sale

   Entered by the court after trial, or by agreement

   If the court rules for the lender, the judgment states what you owe. You have 21 days to appeal, and if there is no appeal a 90-day redemption period starts. You can stay in the home during those 90 days.

   14 M.R.S. § 6322

7. Notice of public sale

   Published once a week for 3 weeks after the 90 days end, and mailed at least 30 days before the sale

   The lender advertises the time, place and terms in a newspaper in your county. If you appeared in the case, the lender must also mail you notice. The sale is held 30 to 45 days after the first ad.

   14 M.R.S. § 6323

The legal steps in Maine

1. Missed payments and the notice of right to cure

   After the federal 120-day wait, or during it, the lender must send a written notice of your right to cure by certified and first-class mail. It must list exactly what you owe to catch up, and the lender cannot speed up the loan or sue until at least 35 days after giving it.

   14 M.R.S. § 6111; 12 C.F.R. § 1024.41(f)

2. The lender files a foreclosure complaint

   The lender starts a civil action and serves you with a summons and complaint. The court tells homeowners they have 20 days to respond. The papers include a one-page form you can fill in and return, which counts as your answer and as a request for mediation.

   14 M.R.S. §§ 6321, 6321-A

3. Mediation through the Foreclosure Diversion Program

   If the home is your primary residence and has four units or fewer, the court must send the case to mediation when you ask for it or appear in the case. A court mediator meets with you and the lender to look at options like a loan modification. No final judgment can be entered until the mediator's report is done.

   14 M.R.S. § 6321-A

4. Judgment and the 90-day redemption period

   If the lender wins, the court enters a judgment of foreclosure and sale. You then have 90 days to pay the full judgment amount and keep the home, and you can stay in the home during that time.

   14 M.R.S. § 6322

5. Notice of sale and public sale

   After the redemption period ends, the lender advertises the sale once a week for three weeks and mails notice to the parties at least 30 days before the sale. The sale must be held 30 to 45 days after the first advertisement. The lender runs the sale and can bid.

   14 M.R.S. § 6323

6. After the sale

   The lender gives the buyer a deed and any writ of possession, files a report of the sale with the court, and mails you a copy. Any money left over belongs to you, and any shortfall can be charged to you.

   14 M.R.S. §§ 6323, 6324

Common questions in Maine