Deficiency judgments Maine occur when a lender seeks additional legal action against a borrower to recover any outstanding and unpaid loan balance, following the foreclosure auction sale of a property securing the underlying loan or mortgage agreement. The laws set forth governing foreclosure in state of Maine, as well as concerning deficiency judgments, are found in the Revised Statutes of the state of Maine, Title 14, Part 4, Chapter 403. For any homeowner struggling with a mortgage, the best source of information concerning foreclosure, foreclosure alternatives, and whether a deficiency judgment may occur is through a foreclosure lawyer actively practicing in the state of Maine.
Maine Laws on Deficiency Judgments following Foreclosure
In the state of Maine, a lender can recover deficient amounts following foreclosure auction through judicial sale. One notable element relevant to Maine deficiency judgments is that the amount deficient in a given foreclosure case is determined not by the actual auction sale price of the home, but rather, the fair market value of the property as determined by a professional appraisal. What this means for homeowners in foreclosure: Any outstanding debt obligations, which may include costs and fees of the foreclosure process, not covered by the fair market value of a property can give grounds to lenders to collect a deficiency judgment.
Maine Laws on Deficiency Judgments in Foreclosure Alternatives
Though many homeowners concerned with deficiency judgments revolve around issues following a judicial foreclosure sale, homeowners should be aware of the possibility of deficiency judgments following certain foreclosure alternatives. In the state of Maine, a borrower is subject to a deficiency judgment, based on the fair market value of a home, in the event the homeowner agrees to a short sale or deed in lieu of foreclosure deal. In most cases, a borrower can negotiate beforehand a provision in any short sale or deed in lieu deal, which prevents lenders from pursuing a deficiency award, known as a no-deficiency provision.
Getting Legal Help with Deficiency Laws in Maine
In practice, the sole purpose of foreclosure is an attempt by homeowners to alleviate debt obligations and start anew. In order to protect the ability to start anew following foreclosure, and not be burdened by external judgments stemming from deficiency awards, a borrower should consult with a foreclosure lawyer in the state of Maine to determine their legal rights and options available to prevent deficiency judgments. Consult with a foreclosure lawyer to learn more about how one’s case-specific considerations will play a role in whether a deficiency judgment may occur, as well as for other individualized foreclosure prevention and loss information.
