Foreclosure Defense in Portland, ME

Are you currently facing a threat of foreclosure in Portland, Maine or are already going through proceedings? Consult with an experienced foreclosure defense lawyer to find out what your options are to save your home.

What Is Foreclosure?

The process begins when a Portland, ME homeowner does not make a mortgage payment. In Maine, you cannot be charged late fees until you are 15 days delinquent on your mortgage payment.

However, Maine lenders generally allow 90 to 120 days grace before beginning the foreclosure process. If after this time, the homeowner has not resolved the payment issue, the lender can begin to foreclose on the house. The home is sold to recover the losses from the owner being unable to pay their mortgage as stipulated in the mortgage contract.

Foreclosure By Power of Sale

The power of sale is a clause in the mortgage or deed of trust. It states that the lender can foreclose without court oversight. Portland homeowners shouldn’t worry because Maine is a judicial-only foreclosure state.

Consequently, power-of-sale foreclosures are not allowed in Portland. According to Maine law, the lender must first give you a Notice of Default. You then have 35 days to make any overdue payments. If you do not, the lender can file a foreclosure complaint with the court. If the lender can prove that you meet these criteria, they can sell the foreclosed home.

Foreclosure By Judicial Sale

Foreclosure by judicial sale involves the sale of a mortgaged property under the supervision of the court. The court proceedings work first to satisfy the mortgage, then to satisfy the lien holders, and then to the lender. Foreclosure by judicial sale requires the lender to navigate the legal process carefully to ensure anyone who buys the foreclosed property legally owns the title.

Types of Foreclosure Defenses

If you’re in the process of foreclosure, you’ll want to do everything in your power to stop the foreclosure. Here are common foreclosure defenses your Portland attorney might recommend.

The Bank Didn’t Follow State Procedures

The foreclosure process is complex and time-consuming; oftentimes, that leads to errors. If the bank or other lender didn’t follow Portland, Maine foreclosure procedures, you might have a good case for stopping the foreclosure.

The Mortgage Servicer Made Mistakes

Mortgage services can make mistakes when handling homeowners’ accounts. Here are some of the most common mistakes to look out for:

• Dual tracking, which means pursuing foreclosure at the same time a different loan modification is pending
• Sending your mortgage payments to the wrong party
• Overstating the amount of money you owe for your mortgage payments
• Imposing excessive fees for late payments that weren’t stipulated in the mortgage contract

If you think the mortgage servicer made these or other mistakes, contact an attorney in Portland, ME right away to help you stop the foreclosure process. This is one of the best options available to help you save your home.

You’re on Active Duty

The Servicemembers Civil Relief Act (SCRA) provides special protections to people who are on active duty. This prevents lenders in Portland from being able to foreclose your home without a proper court proceeding. It allows you to provide a defense with the help of an experienced foreclosure attorney.

The main protection is if you took out your mortgage prior to being on active duty, the foreclosure proceedings must occur in court even if that is not the norm unless you sign a waiver for the lender.

The Foreclosing Party Lacks “Standing”

The foreclosing party is the party that owns the loan. If the lender can’t prove that they own the loan, then that means they lack “standing”. They then can’t foreclose the home.

This happens a lot because banks often bundle your loan with other loans and sell them to other banks or investors. This can make it difficult to track who exactly owns the loan for your house.

The Statute of Limitations Has Passed

The statute of limitations protects homeowners from foreclosure if a significant amount of time has passed since they stopped making their mortgage payments. Believe it or not, some mortgages or missed payments do slip through the cracks.

According to the Maine Legislature, the statute of limitations on foreclosures due to non-payment is 6 years. If the statute of limitations expires on your Portland foreclosure, this issue can be put in front of a judge.

However, new state legislation attempts to reduce the number of unnecessary foreclosure actions. Maine’s Bureau of Consumer Credit Protection now assists in foreclosure avoidance in Portland. Specifically, borrowers may now choose mediation at which parties must evaluate foreclosure alternatives in good faith.  In addition, Portland borrowers now have access to mortgage reinstatement, loan modification, and debt restructuring.

Additional Foreclosure Defenses

Here are some less common foreclosure defense options:

• You’re already making payments on a loan modification, which means the foreclosure should not initiate
• You believe the lender violated federal regulations if you have a VA, USDA, or FHA loan.
• You never received a breach of contract letter from the lender informing you of the violation of your mortgage contract or deed of trust.

Preparing for the Foreclosure Defense Process

When you hire an attorney for your foreclosure case in , , it’s crucial to understand that while there’s no guarantee of success, having professional legal assistance can significantly improve your chances. Foreclosure cases are complex, and a knowledgeable attorney will navigate the intricate legal process, identifying potential issues and loopholes that may benefit your case.

If foreclosures in your state are handled in civil court, your attorney will bring any relevant concerns before a judge. However, if foreclosures typically occur outside the courtroom, your attorney may need to initiate a lawsuit against the responsible party to begin the judicial process.

In Portland, foreclosure cases are usually filed with the Cumberland County Courts. Once you file a complaint, you will be served with a Summons and a copy of the complaint. You must respond or request mediation within 20 days of receiving it from the Cumberland County Sheriff’s Office. Failing to do so could result in losing important rights and opportunities to contest the foreclosure.

Requesting mediation can be a helpful strategy in some cases, as it gives you a chance to negotiate a solution with the lender. Your attorney will assist you throughout this process, and even if mediation doesn’t prevent the foreclosure, your attorney can help delay the proceedings, providing you with more time to organize your finances and explore alternative solutions.

Work with an Experienced Foreclosure Defense Lawyer in Portland, Maine

Even if you feel you don’t have a viable case, an attorney may find solid grounds for fighting the foreclosure. Consulting with a Portland, ME attorney is an objective way to find out if your case is worth going to court. Most first-time consultations with a lawyer are free, which means there’s no risk involved.

Take the first big steps toward fighting to keep your home. You can also delay the process for as long as possible until you find a new one. We can even help you connect with an attorney across Maine state lines.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!

About the Author

Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.

With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.