Legal Question in Credit and Debt Law in Maine

Foreclosure & Deficiency

There is of course a long story behind this, but basically, 9+ years ago we owned business property in Maine that was foreclosed on. There was a summary judgement in 1991 and we had heard nothing else until two weeks ago - when we were contacted by a company that had purchased the debt and claim we owe a $40,000+ deficiency. So far, they have not produced anything other than the summary judgement, and we were not notified of the foreclosure sale so I have absolutely no idea how they arrived at this figure. Three questions:

1) would they need a separate judgement to enforce collection for this deficiency amount?

2) assuming they do, what is the statute of limitations?

3) can they place a lien on the home we purchased 1-1/2 years ago?


Asked on 5/26/99, 3:54 pm

1 Answer from Attorneys
Stephen Silverberg Silverberg Law Office

Re: Foreclosure & Deficiency

This is one of those areas of law that can, and often do, vary from state to state. Regardless of where you live, therefore, you need to consult a MAINE attorney.

In GENERAL, the answers to your 3 questions go as follows:

1. A deficiency judgment can usually be gotten as part of the original foreclosure suit, IF the creditor follows some special rules. You need an expert to review the old court records and find out whether those rules were followed. If you did NOT file an appearance in the Maine foreclosure, the creditor would have to sue you in NH, but the only question the NH court would deal with is whether the Maine judgment was valid.

2. The statute of limitations on a JUDGMENT is usually much longer than for other types of claims. In Conn, for example a judgment may be enforced for 20 years.

3. Assuming the Maine deficiency judgment is valid, and assuming that NH doesn't have any rules against it, YES. That's why you need expert (not merely competent) advice, and quickly.

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Answered on 5/30/99, 10:41 pm


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