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Facing Foreclosure in Maine?

You have more time and more options than you think. Maine uses judicial (14 m.r.s.a. § 6321 et seq.) foreclosure with a typical timeline of 450 days. You also get a 90 days redemption period after the sale. This guide explains what's happening and what to do.

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Maine Foreclosure Facts

Foreclosure Type
Judicial (14 M.R.S.A. § 6321 et seq.)
Typical Timeline
450 Days
From first notice to sale
Redemption Period
90 days
You can buy back after sale
Deficiency Judgment
Limited
Restrictions apply
Right to Cure
35 Days
Deadline to pay arrears
Mandatory Mediation
Required
Maine Foreclosure Diversion Program

Maine ranks 42th in the nation for financial distress, with a State Distress Index score of 39.5 (Healthy). The state's bankruptcy filing rate is 43 per 100,000 residents. Credit card delinquency stands at 9.83%. If you're struggling, you're not alone.

Source: Maine Financial Distress Profile — American Default Research, updated 2026-04-16

Most Distressed Counties

County Score Zone
Androscoggin County 55.0 Elevated
Washington County 51.1 Elevated
Somerset County 50.6 Elevated
Piscataquis County 49.1 Normal
Penobscot County 49.1 Normal

3 counties in Elevated zone.

See all 16 Maine counties →

Maine Foreclosure Timeline

Maine's judicial process gives you more time than most states. Federal law protects you for the first 120 days, and Maine's 90 days redemption period extends the full process further.

Day 1–36
Missed payment. Your servicer must attempt to contact you by Day 36 to discuss options. Federal law (Regulation X).
Day 37–45
Written notice required. Your servicer must send written notice of loss mitigation options by Day 45. You can still apply for help.
Day 45–120
Protected period. Federal law prohibits your lender from starting foreclosure until Day 120. This is your window to apply for a loan modification or forbearance.
Day 120+
Foreclosure can begin. If you've received a Notice of Default, you're here. In Maine, the lender must give you 35 days' written notice and follow state-specific publication requirements. You still have options — see what you can do.
Day 155–300
Foreclosure sale. The property is sold at public auction, typically at the county courthouse. The lender often buys it back.
After sale
90 days redemption. Maine law gives you time after the sale to buy back the property. The specific terms depend on your situation — contact a HUD counselor or attorney for details on your redemption rights.

For a personalized timeline based on your last payment date, use our Foreclosure Timeline Calculator.

Your Rights Under Maine Law

Right to Cure At least 35 days from the lender's cure notice (14 M.R.S.A. § 6111). 14 M.R.S.A. § 6111; 12 CFR 1024.41
Right to Reinstate Before the court enters a judgment of foreclosure. Contact your servicer for the exact reinstatement amount. 14 M.R.S.A. § 6111; 14 M.R.S.A. § 6321
Federal
Dual Tracking Prohibition Federal law (CFPB Regulation X) prohibits servicers from advancing foreclosure while reviewing a loss mitigation application. 12 CFR 1024.41; 14 M.R.S.A. § 6321-A
Federal
Loss Mitigation Review Federal CFPB Regulation X requires servicers to review borrowers for loss mitigation options before foreclosure. Maine's Foreclosure Diversion Program (14 M.R.S.A. 12 CFR 1024.41; 14 M.R.S.A. § 6321-A
Pre-Foreclosure Contact Both Maine state law (14 M.R.S.A. § 6111 — 35-day cure notice) and federal CFPB rules require pre-foreclosure contact and outreach. 14 M.R.S.A. § 6111; 12 CFR 1024.41

Mediation & Dispute Resolution in Maine

Maine Foreclosure Diversion Program

Administered by Maine Judiciary

Maine's Foreclosure Diversion Program is a MANDATORY mediation program — the court must refer all qualifying residential foreclosure cases. This is one of the strongest mediation programs in the country because it is automatic, not optional. The mediator helps negotiate alternatives (modification, forbearance, short sale, deed in lieu).

Applies to: Owner-occupied residential properties (1-4 units) in judicial foreclosure. Mandatory referral — the court must refer all qualifying cases.

14 M.R.S.A. § 6321-A

Your Options in Maine

Every situation is different, but most Maine homeowners have more options than they realize. Here are the paths available to you, from keeping your home to making a clean exit.

Can I keep my home?

Yes, if you act early enough. A loan modification permanently changes your mortgage terms to make payments affordable. Your servicer is required to evaluate you for one if you submit a complete application more than 37 days before a scheduled sale.

Forbearance gives you a temporary payment pause. It doesn't erase what you owe, but it buys time if your hardship is short-term. In Maine, forbearance available through servicer and federal programs (Fannie/Freddie/FHA/VA/USDA). Contact your servicer or a HUD-approved counselor. Reinstatement means paying everything you owe (missed payments plus fees) to bring the loan current.

Filing for Chapter 13 bankruptcy triggers an automatic stay that halts foreclosure immediately. You can catch up on missed payments over 3-5 years while keeping your home. The bankruptcy filing rate in Maine is 43 per 100,000 residents.

Maine also requires mediation through the Maine Foreclosure Diversion Program before your lender can proceed with foreclosure.

What if I can't keep my home?

Selling before foreclosure gives you control over the process and protects your credit score. A short sale lets you sell for less than you owe with lender approval. A deed in lieu of foreclosure transfers the property directly to the lender.

If you sell through a short sale in Maine, you can negotiate a deficiency waiver as part of the approval. Short sales require servicer approval.

A deed in lieu of foreclosure in Maine transfers the property directly to the lender. Deed in lieu available with servicer approval and clear title.

Maine limits deficiency judgments — your lender's ability to pursue you for the balance is restricted by state law.

A distressed property specialist can help

An agent who works with distressed sellers in Maine can negotiate with your lender, manage the short sale process, and help you walk away with your credit intact. The earlier you start, the more leverage you have.

Talk to one for free

My sale date is within 30 days

You still have options, but you need to move fast.

File for bankruptcy. A Chapter 13 filing triggers an automatic stay that stops the sale immediately. Talk to a bankruptcy attorney today.

Submit a loss mitigation application. If you haven't already, a complete application received more than 37 days before the sale forces your servicer to review it before proceeding.

Call a HUD counselor now. They can contact your servicer on your behalf and may be able to delay the sale. Call 1-800-569-4287.

Request mediation. Maine's Maine Foreclosure Diversion Program can give you additional time. Learn more.

Financial Assistance in Maine

Maine HAF / Maine Homeowner Assistance Fund

Limited Funds
Administered by MaineHousing (Maine State Housing Authority)

Funds are limited and may run out. Apply as soon as possible or contact MaineHousing (Maine State Housing Authority) to check availability.

Other Maine Programs

MaineHousing (Maine State Housing Authority)

State housing finance authority providing homeownership programs, down payment assistance, mortgage assistance, and counseling referrals. Administers HAF and other homeownership preservation programs.

Maine HUD-Approved Housing Counseling

Free foreclosure prevention counseling through HUD-approved agencies; services include loss mitigation assistance, mediation preparation, servicer negotiation support, budget counseling, and legal referrals.

Pine Tree Legal Assistance

Free civil legal services for low-income Maine residents, including housing and foreclosure defense. Statewide coverage with offices in Portland, Lewiston, Augusta, Bangor, Presque Isle, and Machias.

Maine 2-1-1

Statewide referral service connecting residents to housing assistance, utility assistance (LIHEAP — critical in Maine's cold climate), food assistance, and other social services; dial 2-1-1 for referrals.

After the Sale in Maine

Eviction Notice
90 Days (Federal)
Court order required for removal
Surplus Funds
You can claim
Surplus proceeds from the foreclosure sale (above the debt and costs) belong to the former owner after junior lienholders are paid in priority order.
Cash for Keys
Commonly offered
Voluntary relocation assistance sometimes offered by purchasers.

After the 90-day redemption period expires, the purchaser may seek a writ of possession to remove the former owner. Maine's forcible entry and detainer process (14 M.R.S.A. The federal Protecting Tenants at Foreclosure Act (PTFA) requires at least 90 days' notice for bona fide tenants in any state.

Protect yourself from scams

People in financial distress are prime targets for fraud. Know these rules:

Never pay an upfront fee for help. Advance fees for mortgage or debt assistance are illegal in most states. If anyone asks for money before doing anything, walk away.
HUD-approved counseling is always free. Call 1-800-569-4287 or visit the CFPB counselor finder. If someone charges for what HUD counselors do for free, it's a scam.
Never sign over your deed without an attorney. "Equity stripping" and "sale-leaseback" scams trick homeowners into transferring their title. You could lose your home permanently.
Your servicer must evaluate you for loss mitigation. Under federal rules (Regulation X), servicers cannot start foreclosure until you're 120+ days delinquent, and must review your application before proceeding. If a company claims only they can "save" your home, verify through your actual servicer.

Report fraud: CFPB · FTC · your state attorney general's office.

How It Works

1
Tell us your situation

Answer a few questions about where you are in the process. Takes 60 seconds.

2
We review your options

A local professional reviews your situation based on Maine law and your servicer's track record.

3
You get a plan

You receive a personalized action plan with next steps. No upfront fees. No obligation.

Get a Free, Confidential Review of Your Options in Maine

A HUD counselor, attorney, or distressed property specialist in Maine can review your specific situation. Many at no cost.

We never charge upfront fees. We never sell your information.

Thank you. A local professional will review your situation and be in touch. In the meantime, visit our free directory to find HUD-approved counselors and legal aid in Maine.

We connect you with HUD-approved counselors, legal aid, and distressed property specialists. We do not sell your information.

Free Resources in Maine

HUD-Approved Counselors

7 certified agencies in Maine provide free foreclosure prevention counseling. They can negotiate with your servicer on your behalf.

Find a counselor near you

Legal Aid

Pine Tree Legal Assistance provides free legal help to low-income residents facing foreclosure, eviction, and debt collection.

Find legal aid

Maine State Bar Association Lawyer Referral Service

The Maine State Bar Association Lawyer Referral Service can connect you with a foreclosure defense attorney. Initial consultations are often free or low-cost.

Find an attorney

Maine Foreclosure Law

Detailed guide to Maine's foreclosure statutes, homeowner protections, and redemption rights. Every claim cited to its source statute.

Read Maine foreclosure law

File a Complaint

File a complaint about your mortgage servicer with the Consumer Financial Protection Bureau.

Frequently Asked Questions

How long does foreclosure take in Maine?

Maine uses judicial (14 m.r.s.a. § 6321 et seq.) foreclosure. The process typically takes 450 days from the first notice to the sale date. Maine also grants a 90 days redemption period after the sale, extending the full timeline. Federal law (Regulation X) prohibits lenders from starting foreclosure until Day 120 of delinquency.

Can I stop foreclosure once it starts in Maine?

Yes. You have several options: (1) Reinstatement — pay all missed payments plus fees to bring your loan current. (2) Loan modification — your servicer must review a complete application received more than 37 days before a scheduled sale. (3) Forbearance — temporary payment pause. (4) Bankruptcy — triggers an automatic stay that halts the sale immediately. (5) Short sale — sell the property before the lender does.

Does Maine require mediation before foreclosure?

Yes. Maine offers the Maine Foreclosure Diversion Program, which can be requested by the homeowner. Mediation gives you a chance to negotiate directly with your lender under the supervision of a neutral third party. This can result in loan modifications, payment plans, or other alternatives to foreclosure.

Does Maine allow deficiency judgments?

Maine limits deficiency judgments. Your lender's ability to pursue you for the remaining balance is restricted by state law. Requirements may include fair market value credits or time limitations. See our Maine foreclosure law guide for specific details.

Is foreclosure counseling free in Maine?

Yes. There are 7 HUD-approved counseling agencies in Maine. Call 1-800-569-4287 for a free referral. HUD counselors can negotiate with your servicer on your behalf at no cost to you. Find one near you.

What is the homestead exemption in Maine?

Maine's homestead exemption is $47,500. Important: this exemption does not protect your home from mortgage foreclosure. It only protects equity from unsecured creditors like credit card companies. It will not stop or slow a foreclosure.

What if I have an FHA, VA, or USDA loan in Maine?

Government-backed loans have additional protections beyond Maine state law. FHA loans require a face-to-face meeting attempt before foreclosure. VA loans require the servicer to explore all alternatives. USDA loans have their own loss mitigation process. These protections generally extend the timeline beyond the state minimums.

What happens to tenants if my Maine home is foreclosed?

Federal law (the Protecting Tenants at Foreclosure Act) gives tenants with valid leases at least 90 days' notice before they must vacate after a foreclosure sale. Federal PTFA gives tenants with bona fide leases 90 days' notice after the sale. If you rent out the property, notify your tenants as soon as possible and advise them to document their lease.

Can I claim surplus funds after a foreclosure sale in Maine?

Yes. If your Maine home sells at auction for more than the total owed (including fees and costs), you have the right to claim the difference. Contact the county clerk, court, or trustee who conducted the sale. These funds can be significant — don't assume nothing is left.

Is the Homeowner Assistance Fund still available in Maine?

Funds are limited. The Maine HAF / Maine Homeowner Assistance Fund is winding down and may close soon. Check current availability at the program website. Apply immediately if you need help — these funds are first-come, first-served.

Can I do a short sale to avoid foreclosure in Maine?

Yes. In Maine, you can negotiate a deficiency waiver as part of a short sale approval. Short sales require servicer approval. Get the waiver in writing before closing. A HUD-approved counselor can help negotiate the terms.

Last updated: 2026-04-16. Data sources: Federal Reserve Bank of New York, CFPB, U.S. Courts, Census Bureau, BLS, Maine Code.

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