Facing Foreclosure in Maine: Options to Know About

Don’t ignore the mail

Letters from your lender and any court papers have deadlines. Open everything and keep copies. The earlier you act, the more options you usually have.

Maine forecloses through the courts

Maine uses a judicial foreclosure process, which means the lender has to go through the court system. For many owner-occupied homes, Maine’s courts also run a Foreclosure Diversion Program that can bring you and your lender together with a mediator. Check the court papers you receive and the Maine Judicial Branch website for details.

Talk to your lender

Lenders may offer a repayment plan, forbearance, or a loan modification. Ask what’s available and get everything in writing.

Get free, trustworthy help

A HUD-approved housing counselor can review your situation for free or low cost. You can find one through the U.S. Department of Housing and Urban Development. A real estate or bankruptcy attorney can explain your legal rights.

Selling before the foreclosure is final

If keeping the house isn’t realistic, selling it, either by listing it or selling as-is to a cash buyer, may let you pay off the loan and avoid a completed foreclosure. Other options include a short sale or a deed in lieu of foreclosure, which your lender would have to approve.

Watch out for scams

Be careful with anyone who asks for upfront fees to “save” your home, tells you to stop talking to your lender, or asks you to sign over your deed before you understand what you’re signing. Have an attorney or housing counselor review any paperwork.

This is general information, not legal, tax or financial advice. Laws and court procedures change, and every situation is different. Talk to a Maine attorney about yours.

Disclosure: Pinetree Home Solutions is a real estate investment company. We are not licensed real estate agents and do not represent you. We may assign our purchase agreement or resell the property for a profit.