Maine Counties

Real Estate Auction in Maine

Maine is considered a tax deed state. If the homeowner doesn’t pay off the debt, the taxing authority sells the home. But the purchaser might not get the deed to the property right away. Sometimes, a redemption period must expire before the buyer gets the deed.

At the auction, the property is sold to the bidder who is willing to pay the taxes and costs due and willing to accept the smallest fractional part of your property. If no bidder offers to take only a portion of the property, the whole parcel will be sold. The winning bidder at the tax sale gets the right to eventually get ownership of your home if you don’t pay off the debt.

It is however interesting to note that auctions happen in Maine at the municipality level instead of the county.

Tax Deed Process

The primary purpose of tax deed sales is to collect unpaid property taxes. When property owners fail to pay their taxes for a specified period, typically three years, the county government may initiate the process to auction off the property to recover the outstanding taxes.

Initiation: The tax deed sale process begins when the county issues a tax lien on the property. The lien serves as a claim against the property for unpaid taxes. The county will then proceed with notifying the property owner and publishing public notices about the impending sale.

Public Auction: Once the required notification period has passed, the county conducts a public auction to sell the tax-deeded properties. The auction is typically held at the county courthouse or other designated locations. It may be an in-person auction or an online auction, depending on the county’s procedures.

Auction Process: During the tax deed auction, interested buyers can bid on the properties. The highest bidder usually wins the auction and acquires the property. However, it’s important to note that each county may have specific rules and procedures governing their tax deed sales, including minimum bid requirements and payment terms. It’s crucial to familiarize yourself with the county’s auction rules and requirements before participating.

Title and Redemption: Once a property is sold at a tax deed auction, the winning bidder receives a tax deed from the county. This document conveys the ownership rights of the property. However, it’s important to understand that the property may be subject to any existing liens or encumbrances. Property owners also have a redemption period during which they can pay the outstanding taxes and redeem the property. If the redemption occurs, the winning bidder will receive a refund of their investment.

Due Diligence: Prior to participating in a tax deed sale, it is crucial to conduct thorough research and due diligence on the properties of interest. This may involve inspecting the properties, reviewing any available property records, and assessing the market value. It’s also advisable to seek professional advice, such as consulting an attorney or a real estate professional, to ensure a clear understanding of the risks and potential issues associated with tax deed properties.

Foreclosure Process in Maine

Maine follows a judicial foreclosure process, which means that foreclosures must go through the court system. The lender initiates the foreclosure by filing a lawsuit in the county court where the property is located. The foreclosure process in Maine includes the following steps-

Notice to Property Owner: Once the foreclosure lawsuit is filed, the property owner is served with a notice of foreclosure. This notice informs the owner about the pending foreclosure action, the reason for foreclosure, and the court proceedings involved.

Court Proceedings: The court oversees the foreclosure process and ensures that all legal requirements are met. The court reviews the evidence, including the loan documentation, default notice, and proof of ownership, to determine whether the foreclosure is warranted.

Foreclosure Auction: If the court approves the foreclosure, a foreclosure auction is scheduled. The auction is typically conducted by a court-appointed trustee or sheriff. The auction may take place at the county courthouse or another designated location.

Auction Process: The foreclosure auction is a public bidding process where interested buyers can participate. The property is sold to the highest bidder, usually for cash or certified funds. Each county may have specific rules regarding minimum bid requirements, deposit amounts, and payment terms.

Confirmation of Sale: After the auction, the court reviews the sale to ensure that it was conducted fairly and in accordance with the law. If the court confirms the sale, the winning bidder receives a certificate of sale, which serves as evidence of their purchase of the foreclosed property.

Redemption Period: In Maine, the property owner has a right of redemption, which allows them to reclaim the property within a specific period after the foreclosure sale. The redemption period is typically 90 days from the date of the foreclosure sale. If the owner redeems the property by paying the outstanding debt plus costs, they regain ownership.

Eviction Process: If the property owner does not redeem the property within the redemption period, the winning bidder can proceed with the eviction process to take possession of the property. This typically involves obtaining a writ of possession from the court and working with local law enforcement to remove any occupants.

Quick Facts

– Judicial Foreclosure Available: Yes
– Non-Judicial Foreclosure Available: No
– Primary Security Instruments: Mortgage
– Timeline: Typically 90 days
– Right of Redemption: Yes
– Deficiency Judgments Allowed: Yes

In Maine, lenders may foreclose on mortgages in default by using either a judicial or strict foreclosure process.

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