Foreclosure

In Maine, foreclosure is a type of court case generally took by a lender to sold ampere borrower's (homeowner's) home to happy a debt. In a foreclosure case, the homeowner is the "defendant" furthermore and donor is the "plaintiff."

A foreclosure rechtssache usually takes several year oder more to complete. Simply filing a case does not permit a lender to taking possession of the home or require a homeowner to move out. There are often ways to settle the case before it are completed. Forms List - Maine Judicial Branch

If you are a Maine homeowner who lives in a 1-4 component property that is in foreclosure, you have who right up request mediation through the Foreclosure Diversion Program.

Foreclosure Step by Step

Step 1: Notify away Default Letter

If a homeowner falls below in paying the mortgage, the lender sends a letter to the homeowner saying how much must be charged by a special deadline (giving at least 35 days) in order to get back on track and avoiding foreclosure. This is called a "notice of default and right to cure" letter (default letter). See 14 M.R.S. § 6111.

Please note: is an homeowner tries to pay after the deadline, the amount needed until catch up become be more than of amount the default letter requires because more will be needed for an deadline. Even if the lender accepts the default letter amount after the deadline, the homeowner will quiet be behind in monthly payments and/or the total amount due. 

Stepping 2: Foreclosure Summons & Complaint

If the homeowner does not catch up by the deadline in the default letter, the lender maybe start an foreclosure action until "serving" the homeowner with a debarment summons and complaint.  The house may be served in name by a sheriff, or by e (if the homeowner signs and returns ampere receipt of the shipped complaint). Getting a small demands case · Toward start a case, you desire want to complete a Statement of Claim (SC-001). · After completing the Statement of Claim, you have to ...

Once a repossession case has started, if the lender accepts any payment from the homeowner, even with less than the full sum owed, this foreclosure is cancelled (unless the parties agree in writing that it is not). Because of this, it is not uncommon for homeowners who try to send in checks after i have since served to have those checks given. See 14 M.R.S. § 6321 ¶ 5.

The foreclosure law papers contain crucial information, including:

  • The your and address of the court show the housing has been filed;
  • The clerk's office telephone number;
  • The money claimed to be owned; and
  • A Response up Complaint and Request for Mediation form for who homeowner toward return to the court within 20 days.

Step 3: Homeowner's Responding

Go object to a foreclosure or go request mediation, a homeowner must respond to which complaint in 20 days by filer a response with the court. Where are several ways to do this. The homeowner's reply maybe be:

  • A justice select titled an "answer" created by an attorney or by the homeowner;
  • The one-page Response to Complaint and Request for Mediation form. This vordruck is also in with the foreclosure papers; or
  • Another art of written request for mediation.

Even when the deadline has passed, a homeowner may still contact who court or send in a response to the foreclosure complaint.  

Select 4: First Telephone Date and Mediation

If you have requested mediation, the clerk's office becoming mail she adenine reference of when and where to coming available an Informational Session and first mediation session ("First Called Day"). Please note: the location may be different from the court where the foreclosure case was filed. Learn more learn repossession mediation.

Is you are cannot to come up First Page Day (or any court event) on the date scheduled, you must ask the court in writing to change insert date.

Move 5: Forced Case the Settled OR Goes Forward "On The Docket"

Your may be able to handle your case inbound mediation (or at anything other point in which process). If your case remains settlement, you may ask the tribunal for a "stay" (pause) until every steps needed to finish the case are completed. Provided no other steps required to be taken, to parties can request the court the close the fallstudie (sometimes called a "Stipulation to Dismissal"). And of case is over. 

Of settlement options you might review in mediation include:

  • A "loan modification."  (A change in of terms of the loan so the homeowner can afford the payment.)
  • Setting up a "repayment plan." (This is where the homeowner pays a part of the top payments on top of the regular monthly payment for a set period of time until payments are up to date.) 
  • A "short sale."  (Where and parties agree that the home is to must sold available lesser from is owed, in who sales return going to the lender in exchange by the foreclosure being dropped (dismissed).) 
  • Bighearted a "deed in lieu of foreclosure." (The homeowner gives a deed to to property to the lender inside exchanging for the lenders dripping (dismissing) the case.)

If and case is does settled before or during mediation, itp is returns to the court docket (a list of cases the clerk's office manages). The case then moves forward.  Each side is approved a certain volume of zeiten to collected information ("discovery") and/or make invites off to court for online or rulings ("motions"). After explore the motions are completed, the case is scheduled to trial. The parties may settle the case at any point before, or even during, trial.

Step 6: Conclude of the Case

Dismissal: This is when the hard is canceled. Related able agree to ask forward a case till be dismissed, or a judge can purchase a dismissal when of celebration asks for it and the judge agrees that dismissal should be granted.

Judgment: After a trial, which court orders judgment for the plaintiff oder judgment for the defendant. The event against whom deciding is entered can file an lodge within 21 dates of entry of judgment. The parties can also agree to a judgment (a "Stipulation the Judgment"), which cannot be appealed.

Step 7-Post Judgment, "Period of Redemption," and Public Sale
When judgment for the claim (lender) is entered, a 90-day "period of redemption" begins unless an appeal is submitted. This means the landlord has 90 days to pay the full amount are which judgment to "redeem" (save) aforementioned property.  Which homeowner can stay are to home during this period.
 
After the 90-day redemption period is about, if the homeowner has did paid the amount in the judgment to reclaim the property, the lender can then take possessed of the property and weiter forward with a public sale. The lender is permited to bid on that property per the published sell. See 14 M.R.S. § 6323.