Patricia purchases a lakefront cottage in Rangeley, Maine, financing it with a conventional mortgage. She signs a promissory note and a mortgage instrument at closing. Six months later, she stops making payments. Which process must her lender follow to take possession of the property under Maine law?
Correct Answer
B) File a court action and obtain a judicial foreclosure judgment before taking possession
Maine is a judicial foreclosure state under 14 M.R.S. §§ 6321–6325. Because Maine follows lien theory, the lender holds only a security interest — not title — and must file a lawsuit in court to foreclose on the mortgage. The court must enter a judgment before the lender can take possession or conduct a foreclosure sale. This process is longer than non-judicial foreclosure but is the only legally valid method in Maine.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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