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"The median monthly payment reduction for borrowers enrolled in
the (HAMP) program is $522" - DSnews.com
Maine Foreclosure Law
The Maine foreclosure laws state that lenders may foreclose on defaulted mortgage contracts and may follow the judicial or strict foreclosure process. In most cases the lender has to take the home owner to court to get authorization from a judge to foreclose on the property. This process usually takes about 3 months or 90 days.Judicial Foreclosure
The Judicial Foreclosure process is used when the mortgage or deed of trust does not include a Power of Sale clause. In a judicial foreclosure, the lender files a lawsuit and obtains a court order allowing them to foreclose on the property. The court must reside in the same county as the property that is being foreclosed upon. Once the foreclosure is granted an auction will be announced and the home will be sold to the highest bidder.
In most cases the lender will follow a strict foreclosure whihc is based on the states foreclosure doctrine. This doctrine states that until the mortgage is fully paid, the lender legally owns the home. If during this time the borrower is in default or breaches the contract or terms of the contract before full payment, they will lose all rights to the property regardless of how much they have paid towards the principle balance of the loan. When the homeowner defaults the lender can either put the home up for sale or take possession of the property.
Redemption Period
The Right of Redemption is a time frame, typically 12 months, after the foreclosure sale during which the borrower can buy back the home. This usually means paying the final sale price, plus interest and attorney's fees.
The lender can also file a deficiency suit, a personal claim against the borrower for the balance not covered by the foreclosure sale. However, they can only sue for the exact difference between the sale price and the balance on the original mortgage.