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After Discovery and Motions Are Completed

In Maine, foreclosure is a kind of lawsuit usually brought by a lending institution to offer a debtor’s (homeowner’s) home to please a financial obligation. In a foreclosure case, the property owner is the „accused“ and the lender is the „complainant.“

A foreclosure case typically takes a number of months or more to complete. Simply filing a case does not allow a loan provider to take belongings of the home or need a homeowner to leave. There are typically methods to settle the case before it is finished.

If you are a Maine house owner who resides in a 1-4 system residential or commercial property that remains in foreclosure, you can demand mediation through the Foreclosure Diversion Program.

Foreclosure Step by Step

Step 1: Notice of Default Letter

If a homeowner falls back in paying the mortgage, the lending institution sends a letter to the property owner saying just how much must be paid by a particular due date (providing a minimum of 35 days) in order to get back on track and prevent foreclosure. This is called a „notification of default and right to treat“ letter (default letter). See 14 M.R.S. § 6111.

Please note: if the property owner tries to pay after the due date, the amount needed to capture up will be more than the quantity the default letter requires because more will be needed after the deadline. Even if the loan provider accepts the default letter quantity after the due date, the homeowner will still be behind in monthly payments and/or the overall quantity due.

Step 2: Foreclosure Summons & Complaint

If the house owner does not catch up by the due date in the default letter, the loan provider might start a foreclosure action by „serving“ the homeowner with a foreclosure summons and complaint. The might be served in individual by a constable, or by mail (if the homeowner indications and returns an invoice of the sent by mail problem).

Once a foreclosure case has actually started, if the lender accepts any payment from the house owner, even for less than the complete quantity owed, the foreclosure is cancelled (unless the parties agree in composing that it is not). Because of this, it is not unusual for homeowners who attempt to send out in checks after they have been served to have those checks returned. See 14 M.R.S. § 6321 ¶ 5.

The foreclosure court documents consist of important details, including:

– The location and address of the court where the case has actually been submitted;
– The clerk’s office telephone number;
– The amount declared to be owed; and
– A Response to Complaint and Request for Mediation type for the house owner to return to the court within 20 days.

Step 3: Homeowner’s Response

To challenge a foreclosure or to demand mediation, a property owner needs to react to the complaint within 20 days by submitting a response with the court. There are several methods to do this. The house owner’s response might be:

– A court document called an „response“ prepared by an attorney or by the property owner;
– The one-page Response to Complaint and Request for Mediation form. This kind is also included with the foreclosure documents; or
– Another kind of written demand for mediation.

Even if the deadline has passed, a property owner may still call the court or send in a reaction to the foreclosure problem.

Step 4: First Call Day and Mediation

If you have requested mediation, the clerk’s office will mail you a notice of when and where to come for an Informational Session and first mediation session (“ First Call Day“). Please note: the area may be different from the court where the foreclosure case was submitted. Learn more about foreclosure mediation.

If you are not able to come to First Call Day (or any court event) on the date arranged, you should ask the court in composing to change your date.

Step 5: Foreclosure Case is Settled OR Goes Forward „On The Docket“

You might have the ability to settle your case in mediation (or at any other point at the same time). If your case is settled, you might ask the court for a „stay“ (pause) up until any actions needed to end up the case are finished. If no extra steps need to be taken, the celebrations can ask the court to close the case (in some cases called a „Stipulation to Dismissal“). Then the case is over.

Some settlement options you might discuss in mediation consist of:

– A „loan modification.“ (A change in the regards to the loan so the property owner can pay for the payment.).
– Setting up a „repayment plan.“ (This is where the homeowner pays a part of the back payments on top of the regular monthly payment for a set amount of time until payments are up to date.).
– A „brief sale.“ (Where the parties agree that the home is to be cost less than is owed, with the sales continues going to the lender in exchange for the foreclosure being dropped (dismissed).).
– Giving a „deed in lieu of foreclosure.“ (The homeowner provides a deed to the residential or commercial property to the lender in exchange for the loan provider dropping (dismissing) the case.)

If the case is not settled before or during mediation, it is gone back to the court docket (a list of cases the clerk’s workplace handles). The case then moves forward. Each side is allowed a specific quantity of time to collect information (“ discovery“) and/or make demands of the court for orders or judgments (“ movements“). After discovery and movements are finished, the case is arranged for trial. The celebrations may settle the case at any point before, or perhaps throughout, trial.

Step 6: Conclusion of the Case

Dismissal: This is when the case is canceled. Parties can concur to ask for a case to be dismissed, or a judge can buy a dismissal when one celebration asks for it and the judge concurs that dismissal should be granted.

Judgment: After a trial, the court orders judgment for the plaintiff or judgment for the offender. The celebration versus whom judgment is gone into can submit an appeal within 21 days of entry of judgment. The parties can also consent to a judgment (a „Stipulation to Judgment“), which can not be appealed.

Step 7-Post Judgment, „Period of Redemption,“ and Public Sale.
When judgment for the complainant (loan provider) is gotten in, a 90-day „duration of redemption“ begins unless an appeal is submitted. This suggests the property owner has 90 days to pay the total of the judgment to „redeem“ (save) the residential or commercial property. The property owner can remain in the home throughout this duration.

After the 90-day redemption period is over, if the property owner has actually not paid the quantity in the judgment to redeem the residential or commercial property, the lender can then take possession of the residential or commercial property and go forward with a public sale. The lending institution is enabled to bid on the residential or commercial property at the public sale. See 14 M.R.S. § 6323.