Foreclosure Help in Maine
If you have difficulty making your house payments, you should seek help. It’s scary and devastating to think you might have to foreclose on your home. Foreclosure is a legal process where a lender, most likely a bank, will seize your home to try and sell it to recover as much of the balance of the loan. In Maine, it takes anywhere from 10 to 16 months for this process to happen. If you act quickly, however, there are ways to get help and keep your home.
Fortunately, the Maine Legislature passed a law in 2009 to help homeowners. The law provides mediation of foreclosure of residential mortgages. Borrowers can choose arbitration and evaluate foreclosure alternatives. The bill also states that issues like the reinstatement of the mortgage, modification of the loan and restructuring, will be addressed at this mediation.
Contact your lender
If you are having trouble with your mortgage payment, start by contacting your lender or servicer. If your foreclosure process has started, you can still contact your lender or servicer and explain your situation and see how they can assist.
There are organizations designed to avoid foreclosure that include:
- Bureau of Consumer Credit Protection
The Bureau of Consumer Credit Protection oversees much of the consumer finance industry and protects consumers. You can contact the Prevention Hotline at 1-888-664-2569 (1-888–NO-4-CLOZ).
- Counseling agencies
The U.S. Department of Housing and Urban Development (HUD) has a list of approved counseling agencies in Maine to contact. There is also a list of counseling agencies in different counties that can help.
- Property Tax Relief Programs
Sometimes paying your property tax on top of your mortgage will stretch your budget beyond its limits. Maine offers property tax relief through different programs and also has municipal programs to help senior citizens. For more information, visit the State of Maine’s Revenue Services online.
- Short Sale (Deed-In-Lieu of Foreclosure)
A short sale is one of the last options for homeowners. A short sale means your lender gives you the approval to sell your property for less than the remaining mortgage balance. In other words, you still have to sell your house, but you are released from debt or long-term credit issues.
Have a specific question about Avoiding Foreclosure in Maine? Check out our Foreclosure FAQ’s section.
It’s hard to imagine that you could find yourself in this situation with your home. Foreclosure is a complex issue, but there are resources and organizations available to help you through this challenging process.