Maine HOA Foreclosure Laws

If you own property in a Maine homeowners association or condominium association and have unpaid assessments, the association may have legal remedies that can ultimately affect your property. However, Maine HOA foreclosure laws depend heavily on the type of community involved. Maine’s Condominium Act expressly gives condominium associations a lien for unpaid assessments and allows that lien to be foreclosed like a mortgage. For older condominium projects, a separate statute also addresses assessment liens and foreclosure.

For homeowners, the most important issues are whether the property is legally a condominium unit, what the governing declaration and bylaws provide, how much is actually owed, the association’s lien rights, the priority of competing liens, and whether the statutory deadline for enforcing the lien has expired.

Direct Answer: Can an HOA Foreclose on a Home in Maine?

Yes, a Maine condominium association can foreclose a lien for unpaid assessments under 33 M.R.S. § 1603-116. The statute states that an association’s assessment lien may be foreclosed in the same manner as a mortgage on real estate, while also establishing important lien-priority rules and a six-year enforcement deadline.

Important: “HOA” is often used broadly, but Maine’s statutory foreclosure rules are not automatically identical for every homeowner association. The condominium-specific rules in 33 M.R.S. § 1603-116 should not automatically be treated as a blanket foreclosure statute for every planned community or neighborhood association.

What Is an HOA Foreclosure?

HOA foreclosure generally refers to an association enforcing a legally valid lien against a property because the owner has failed to pay assessments or other amounts secured by the lien. If the applicable law and governing documents authorize foreclosure, the association may seek a court-ordered foreclosure process that can ultimately result in the property being sold.

In Maine condominium communities, the statutory authority is particularly clear: an association has a lien for assessments and certain fines once they become due, and that lien may be foreclosed like a mortgage.

How Do Maine HOA Foreclosure Laws Work?

The first step is identifying what type of community owns or governs the property.

Maine’s Condominium Act applies to condominiums created under the Act and also contains provisions that can apply to certain older condominiums under the statute’s applicability rules.

For condominiums governed by 33 M.R.S. § 1603-116, the association’s lien arises when an assessment or qualifying fine becomes due. The statute also provides that if an assessment is payable in installments, the full assessment becomes a lien when the first installment becomes due.

This makes the governing documents important. A homeowner should review the declaration, bylaws, assessment provisions, notices received from the association, payment history and any recorded documents before assuming that an association can simply foreclose.

What Can Create an HOA Lien in Maine?

Under Maine’s Condominium Act, an association has a lien for assessments levied against the unit and fines imposed against the unit owner from the time those amounts become due.

Unless the declaration provides otherwise, certain fees, charges, late charges, fines and interest can also be enforceable as assessments under the statute.

Common amounts that may therefore become relevant include:

• Regular condominium assessments
• Special assessments
• Certain association charges
• Qualifying late charges
• Certain fines
• Interest
• Reasonable enforcement costs and attorney’s fees when authorized

However, the exact amount claimed should always be checked against the association’s declaration, bylaws, applicable statute and account records.

How Long Does a Maine HOA Have to Enforce an Assessment Lien?

For condominiums subject to 33 M.R.S. § 1603-116, an assessment lien is extinguished unless proceedings to enforce it are instituted within six years after the full amount of the assessments becomes due. Maine increased this period from five years to six years through Public Law Chapter 3.

That deadline is important because an old assessment balance should not automatically be assumed to remain enforceable forever.

Does a Maine HOA Lien Have Priority Over a Mortgage?

Not generally over a first mortgage.

Under 33 M.R.S. § 1603-116, the condominium association’s assessment lien has priority over many other liens and encumbrances, but important exceptions include:

Lien or Interest	General Treatment Under §1603-116
Certain liens recorded before the declaration	Exception to association lien priority
First mortgage	Generally, has priority over the association lien
Real estate taxes and governmental charges	Generally, have priority
Association assessment lien	Has statutory priority over many other liens
Mechanics’ or materialmen’s liens	Priority can depend on applicable law

The statute specifically recognizes a first mortgage as an exception to the association’s general lien priority.

This distinction matters because an association having the right to foreclose does not necessarily mean its foreclosure will eliminate every other lien on the property.

Can a Maine Condominium Association Foreclose for Unpaid Assessments?

Yes. Maine law expressly states that the association’s lien may be foreclosed in the same manner as a mortgage on real estate.

The association can also pursue an action to recover money secured by the lien without necessarily relying exclusively on foreclosure. Maine law further allows an association to accept a deed in lieu of foreclosure.

A foreclosure is therefore a serious collection remedy, but it is not necessarily the association’s only legal option.

What Is the Maine HOA Foreclosure Process?

Because the condominium assessment lien may be foreclosed in the same manner as a mortgage, the foreclosure process can involve the procedures applicable to real-property mortgage foreclosures.

A simplified process can look like this:

1. Assessments become delinquent.
   The homeowner fails to pay amounts due under the applicable declaration and law.
2. The association establishes the amount owed.
   The account should identify assessments, authorized charges, interest and other amounts being claimed.
3. The association asserts its lien rights.
   For condominiums governed by §1603-116, the statute provides that recording the declaration constitutes record notice and perfection of the assessment lien, so no additional claim-of-lien recording is required under that subsection.
4. The association may pursue collection or foreclosure.
   The statute permits foreclosure of the assessment lien in the same manner as a mortgage.
5. A civil foreclosure action may proceed through the courts.
   Maine’s foreclosure statutes establish procedures for civil foreclosure actions, including requirements concerning parties in interest, recording the foreclosure complaint and proof of the mortgage claim in ordinary mortgage cases.
6. The court determines the amount and priority.
   Maine’s foreclosure framework requires the court to determine issues such as the amount due and lien priority.
7. Redemption rights apply.
   For mortgages executed on or after October 1, 1975, Maine generally provides a 90-day redemption period following entry of a foreclosure judgment, provided no appeal is taken.
8. A public sale can follow if the property is not redeemed.
   Maine law provides for notice and a public sale after expiration of the redemption period.

The exact procedure in an association assessment-lien case can depend on the property’s legal classification and the nature of the lien, so homeowners should not assume every mortgage-foreclosure rule applies identically to every HOA dispute.

What Is the Maine Foreclosure Redemption Period?

For mortgages executed on or after October 1, 1975, Maine law generally establishes a 90-day redemption period after the foreclosure judgment, assuming no appeal is taken. During this period, the mortgagor can redeem by paying the amount adjudged due with applicable interest.

Older mortgages can have a different redemption period. Mortgages executed before October 1, 1975 generally have a one-year redemption period unless the mortgage provides otherwise.

For an HOA or condominium assessment foreclosure, the exact application of the mortgage foreclosure framework should be reviewed by a Maine attorney because the underlying lien is an association assessment lien rather than a conventional mortgage.

What Happens After the Redemption Period?

If the property is not redeemed, Maine’s foreclosure statutes provide for a public sale.

For ordinary civil foreclosure proceedings, notice of the public sale must be published once in each of three successive weeks in a newspaper of general circulation in the county. The first publication must generally occur no more than 90 days after expiration of the redemption period, and the sale is generally scheduled between 30 and 45 days after the first publication, subject to statutory exceptions.

This means foreclosure is a legal process rather than an immediate transfer of ownership simply because an owner missed assessment payments.

Does a Homeowner Have to Pay HOA Attorney’s Fees in Maine?

Potentially.

Under 33 M.R.S. § 1603-116, a judgment or decree in an action brought under the assessment-lien statute includes costs and reasonable attorney’s fees for the prevailing party.

That means a delinquent account can become substantially larger once litigation and enforcement costs are added.

Homeowners should therefore request a current, itemized statement rather than relying only on the original assessment balance.

Can a Homeowner Request an Unpaid Assessment Statement?

Yes. Under §1603-116, a unit owner can make a written request for a recordable statement showing the amount of unpaid assessments currently levied against the unit.

The association must furnish that statement within 10 business days after receiving the request, and the statute provides that the statement is binding on the association, executive board and unit owners.

This can be especially useful when a homeowner disputes the amount claimed.

What Should a Homeowner Do If an HOA Threatens Foreclosure?

If you receive a foreclosure demand or lawsuit, do not ignore it. A practical response is to organize the documents and determine exactly what the association is claiming.

Follow These Steps

1. Request an itemized account.
   Ask the association for the current balance, including assessments, fees, interest, fines, attorney’s fees and other charges.
2. Review the declaration and bylaws.
   Determine what assessments and enforcement remedies are authorized.
3. Check the property’s legal status.
   Confirm whether the property is part of a condominium or another type of community association.
4. Review the payment history.
   Compare the association’s account with bank statements, canceled checks and payment confirmations.
5. Check the age of the debt.
   For a condominium assessment lien governed by §1603-116, the six-year enforcement period is significant.
6. Review the recorded title and mortgage.
   Lien priority can significantly affect the consequences of an association foreclosure.
7. Respond to court documents on time.
   A lawsuit should never be ignored simply because the underlying debt is disputed.
8. Consult a Maine real-estate attorney.
   Foreclosure can affect ownership and other property rights, so legal advice is appropriate when litigation is threatened or filed.

Can an HOA Foreclose for Fines in Maine?

For condominiums governed by Maine’s Condominium Act, §1603-116 expressly provides that the association has a lien for fines imposed against the unit owner from the time the fine becomes due.

However, that does not mean every fine issued by every Maine HOA automatically creates a foreclosure right. The property’s legal structure, declaration, bylaws and applicable statute must be examined before reaching that conclusion.

This is one reason homeowners should distinguish between a condominium association and a more general homeowners association.

Maine HOA vs. Condominium Association Foreclosure Rules

The terminology matters.

A condominium association operating under the Maine Condominium Act has an express statutory assessment-lien provision in 33 M.R.S. §1603-116. Older condominium projects can also be subject to provisions in 33 M.R.S. §§580-581.

By contrast, a property owner should not automatically assume that every neighborhood HOA has the same statutory foreclosure authority simply because it is commonly called an “HOA.”

Issue	Maine Condominium	General HOA / Planned Community
Statutory assessment lien	Expressly provided under applicable condominium law	Must be determined from applicable law and governing documents
Foreclosure authority	Expressly provided by §1603-116 for covered condominiums	Depends on applicable legal authority
Lien priority	Specifically addressed by statute	Depends on applicable law and documents
Six-year enforcement period	Applies under §1603-116	Should not automatically be assumed
Governing declaration	Important	Especially important
Legal review	Recommended for foreclosure disputes	Recommended for determining lien/foreclosure authority

This distinction is critical for accurate legal content about Maine HOA foreclosure laws.

What About Older Maine Condominium Communities?

Maine also has an older statutory framework for unit ownership.

Under 33 M.R.S. §581, unpaid common expenses can constitute a lien on a condominium unit. The statute provides that the lien may be claimed 60 days after the assessment’s due date, must be signed by the manager or a board member, and is perfected through filing with the appropriate registry of deeds and providing a copy to the unit owner. It also permits foreclosure in the same manner as a mortgage of real property.

This illustrates why determining which Maine condominium statute applies to a particular property is an important first step.

Can a Homeowner Stop an HOA Foreclosure?

Potentially, depending on the circumstances.

Possible issues can include:

• The amount claimed is incorrect.
• Payments were not properly credited.
• The association lacks authority under the governing documents.
• The property is not subject to the statute being relied upon.
• The lien is too old to enforce.
• Required procedures were not followed.
• The association is claiming unauthorized fees or charges.
• There is a dispute concerning lien priority.
• The parties reach a payment or settlement agreement.

A homeowner should raise legitimate defenses promptly rather than waiting until the foreclosure sale is imminent.

Frequently Asked Questions About Maine HOA Foreclosure Laws