Property tax foreclosure in Maine

The property tax process in Maine, step by step

1. Taxes become delinquent on your town's date

   Set by your town each year

   Each town votes on its due dates and an interest rate for late taxes. The rate cannot be higher than a yearly maximum set by the Treasurer of State, and the interest is added to your tax.

   36 M.R.S. § 505(4)

2. 30-day demand before a lien

   8 to 12 months after the tax was committed

   The tax collector sends or hands you a written demand to pay within 30 days. If your home has a homestead exemption, the notice must also tell you that you may apply for a hardship abatement and where to find free help, including legal services.

   36 M.R.S. § 942

3. The tax lien is recorded

   Within 10 days after the 30 days run out

   The collector records a tax lien certificate at the registry of deeds, which creates a tax lien mortgage for the town. Copies go to any mortgage holder. Fees for recording, notices and certified mail are added to what you owe.

   36 M.R.S. §§ 942, 943

4. Pay within 18 months to redeem

   18 months from recording the lien

   You keep the home and can stop the foreclosure by paying the tax, interest and costs at any time in this period. Ask your town about a payment arrangement, a hardship or poverty abatement, and, if you are 65 or older or disabled, the State Property Tax Deferral Program.

   36 M.R.S. § 943; 36 M.R.S. § 841(2); 36 M.R.S. § 6251

5. Final notice of automatic foreclosure

   30 to 45 days before the foreclosure date

   The town treasurer must send a Notice of Impending Automatic Foreclosure with the exact date. If you did not get this notice on time, you can still redeem until 30 days after the treasurer does send it.

   36 M.R.S. § 943

6. The town owns the home

   The day after the 18 months end

   The lien forecloses automatically and the town takes title, with no court hearing. The town may agree to sell the home back to you. A lawsuit challenging the taking of a home generally must be brought within 5 years after redemption ends.

   36 M.R.S. § 943; 36 M.R.S. § 946-B

7. Sale through a broker and payment of excess proceeds

   Notice at least 90 days before listing

   To sell to anyone else, the town must mail you notice, list the home with a licensed broker at the highest reasonable price, and pay you the sale price minus taxes, interest, fees, sale costs and unpaid utility charges. If the town keeps the home, it pays you based on an appraisal. You can ask for a written accounting, and taking the money waives a lawsuit challenging the taking.

   36 M.R.S. § 943-C

Common questions in Maine