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After Discovery and Motions Are Completed

In Maine, foreclosure is a kind of court case usually brought by a loan provider to sell a customer’s (house owner’s) home to please a debt. In a foreclosure case, the homeowner is the “offender” and the loan provider is the “plaintiff.”

A foreclosure case typically takes several months or more to complete. Simply filing a case does not permit a loan provider to acquire the home or require a property owner to leave. There are frequently methods to settle the case before it is completed.

If you are a Maine homeowner who resides in a 1-4 unit residential or commercial property that remains in foreclosure, you deserve to request mediation through the Foreclosure Diversion Program.

Foreclosure Step by Step

Step 1: Notice of Default Letter

If a house owner falls behind in paying the mortgage, the lending institution sends a letter to the house owner stating how much need to be paid by a specific due date (giving at least 35 days) in order to get back on track and avoid foreclosure. This is called a “notification of default and right to cure” letter (default letter). See 14 M.R.S. § 6111.

Please note: if the homeowner attempts to pay after the deadline, the amount needed to capture up will be more than the quantity the default letter needs since more will be required after the deadline. Even if the lending institution accepts the default letter quantity after the due date, the property owner will still be behind in regular monthly payments and/or the overall quantity due.

Step 2: Foreclosure Summons & Complaint

If the homeowner does not capture up by the due date in the default letter, the loan provider may begin a foreclosure action by “serving” the house owner with a foreclosure summons and problem. The property owner might be served in person by a constable, or by mail (if the house owner signs and returns an invoice of the sent by mail complaint).

Once a foreclosure case has actually begun, if the lending institution accepts any payment from the house owner, even for less than the total owed, the foreclosure is cancelled (unless the celebrations concur in writing that it is not). Because of this, it is not unusual for homeowners who try to send in checks after they have actually been served to have those checks returned. See 14 M.R.S. § 6321 ¶ 5.

The foreclosure court documents include crucial information, consisting of:

– The place and address of the court where the case has been submitted;
– The clerk’s workplace telephone number;
– The quantity claimed to be owed; and
– An Action to Complaint and Request for Mediation kind for the house owner to go back to the court within 20 days.

Step 3: Homeowner’s Response

To challenge a foreclosure or to demand mediation, a house owner should react to the grievance within 20 days by filing a reaction with the court. There are numerous methods to do this. The house owner’s reaction may be:

– A court document called an “response” prepared by an attorney or by the homeowner;
– The one-page Response to Complaint and Ask for Mediation form. This kind is likewise included with the foreclosure documents; or
– Another form of composed demand for mediation.

Even if the deadline has passed, a house owner may still contact the court or send in an action to the foreclosure complaint.

Step 4: First Call Day and Mediation

If you have actually asked for mediation, the clerk’s office will mail you a notification of when and where to come for an Informational Session and first mediation session (” First Call Day”). Please note: the location might be various from the court where the foreclosure case was submitted. Discover more about foreclosure mediation.

If you are unable to come to First Call Day (or any court event) on the date set up, you need to ask the court in composing to alter your date.

Step 5: Foreclosure Case is Settled OR Moves Forward “On The Docket”

You may 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” (time out) up until any actions needed to complete the case are completed. If no additional actions require to be taken, the parties can ask the court to close the case (in some cases called a “Stipulation to Dismissal”). Then the case is over.

Some settlement alternatives you may discuss in mediation include:

– A “loan adjustment.” (A change in the regards to the loan so the property owner can pay for the payment.).
– Establishing a “repayment strategy.” (This is where the homeowner pays a part of the back payments on top of the routine monthly payment for a set duration of time until payments are up to date.).
– A “brief sale.” (Where the parties agree that the home is to be offered for less than is owed, with the sales continues going to the lending institution in exchange for the foreclosure being dropped (dismissed).).
– Giving a “deed in lieu of foreclosure.” (The house owner gives 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 throughout mediation, it is returned to the court docket (a list of cases the clerk’s workplace handles). The case then progresses. Each side is enabled a particular amount of time to collect information (” discovery”) and/or make demands of the court for orders or judgments (” movements”). After discovery and motions are finished, the case is scheduled for trial. The celebrations might settle the case at any point in the past, or perhaps during, trial.

Step 6: Conclusion of the Case

Dismissal: This is when the case is canceled. Parties can agree to request a case to be dismissed, or a judge can order a when one party asks for it and the judge agrees that termination should be approved.

Judgment: After a trial, the court orders judgment for the complainant or judgment for the accused. The party against whom judgment is gone into can file an appeal within 21 days of entry of judgment. The celebrations can likewise 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 entered, a 90-day “duration of redemption” begins unless an appeal is submitted. This suggests the homeowner has 90 days to pay the full quantity of the judgment to “redeem” (save) the residential or commercial property. The house owner can remain in the home during this period.

After the 90-day redemption period is over, if the house owner has not paid the amount in the judgment to redeem the residential or commercial property, the loan provider can then acquire the residential or commercial property and go forward with a public sale. The loan provider is enabled to bid on the residential or commercial property at the general public sale. See 14 M.R.S. § 6323.