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Homeowners searching for the Maine mortgage relief program often seek information about the Maine Homeowner Assistance Fund (HAF). It is critical to understand that this specific, federally-funded program is no longer accepting new applications. The program, created in response to the COVID-19 pandemic and administered by Maine Housing, officially stopped taking new applications as of January 10, 2023.
The HAF program was designed to provide grants up to $50,000 to eligible homeowners who experienced financial hardship due to the pandemic. These funds helped with past-due mortgage payments, property taxes, utilities, and other housing costs.
While this pandemic-era fund has closed, it does not mean that help is unavailable. Maine has a robust network of state, federal, and non-profit resources dedicated to helping homeowners. For those facing financial difficulty, understanding these existing programs is the most important next step toward securing your home.
Your First Two Calls: An Immediate Action Plan for Homeowners
Facing mortgage trouble can be overwhelming. To cut through the confusion and connect with immediate, expert guidance, the most effective strategy is to start with two specific phone calls. These resources are free, confidential, and staffed by professionals trained to help Maine homeowners.
Call the Foreclosure Prevention Hotline
The first and most direct step is to contact the Maine Bureau of Consumer Credit Protection's Foreclosure Prevention Hotline. This state-run service is the central clearinghouse for trusted foreclosure assistance in Maine.
Hours: The hotline is answered in person on weekdays from 8:30 a.m. to 4:30 p.m..
What to Expect: A live professional will provide free, immediate advice and connect you to the appropriate resources for your specific situation. This call serves as an expert-led triage, ensuring you are pointed in the right direction from the very beginning.
Connect with a Free HUD-Approved Housing Counselor
Your second call should be to a U.S. Department of Housing and Urban Development (HUD)-approved housing counseling agency. These non-profit organizations provide expert financial guidance to homeowners at no cost. A housing counselor acts as your advocate and strategist, providing invaluable support.
A HUD-approved counselor can provide a wide range of free services:
Financial Assessment: They will conduct a thorough review of your income, expenses, and debts.
Budgeting and Planning: They will help you create a realistic household budget to manage your expenses.
Exploring Options: They will explain all available options, from negotiating with your lender to applying for state or federal programs.
Lender Communication: A counselor can act as an intermediary between you and your mortgage servicer, helping you prepare documentation and negotiate a workable solution.
You can find a HUD-certified counselor through the Foreclosure Prevention Hotline or by searching directly on HUD's website. Key agencies providing these free services across Maine include:
Aroostook County: Aroostook Community Action Program, Inc. (207-764-3721).
Androscoggin and Oxford Counties: Community Concepts, Inc. (1-866-221-4384).
York County: York County Community Action (207-324-5762 Ext. 2967).
Washington and Hancock Counties: Washington-Hancock Community Action Program (207-664-2424).
Penobscot, Piscataquis, Knox, and Waldo Counties: Maine Stream Finance (1-800-215-4942).
Kennebec and Somerset Counties: Kenbec Valley Community Action Program (1-200-542-8227).
Statewide: Coastal Enterprises, Inc. (207-882-7552) and Money Management International (1-866-889-9347).
Working With Your Lender: Navigating Mortgage Workout Options
Many homeowners hesitate to contact their mortgage lender when they fall behind on payments. However, proactive communication is one of the most powerful tools available to prevent foreclosure. Lenders are typically motivated to find an alternative, as foreclosure is a costly and time-consuming process for them.
Preparing for the Call
Before contacting your lender, it is essential to be prepared. A housing counselor can help you assemble the necessary information, which generally includes:
Your mortgage account number.
A detailed explanation of your financial hardship.
Documentation of your current household income.
A list of your monthly household expenses.
When you speak with your lender, ask to be connected with the "loss mitigation" department. This department specializes in working with borrowers to find alternatives to foreclosure. Several standard "workout" options may be available, depending on your circumstances.
Options to Stay In Your Home
These options are designed to help you keep your property by making your mortgage payments more manageable.
Special Forbearance: This is a written agreement where your lender temporarily reduces or suspends your mortgage payments. It is best suited for homeowners experiencing a short-term hardship who expect their financial situation to improve soon.
Repayment Plan: If you have missed a few payments but can now resume your regular payment, this plan allows you to catch up on the delinquent amount by adding a portion of it to your regular monthly payments over a set period.
Loan Modification: For homeowners facing a long-term financial change, a loan modification permanently changes one or more terms of your loan to lower your monthly payment. This could include reducing the interest rate or extending the loan term.
Special Programs for Maine Housing Borrowers
Homeowners with mortgages financed through Maine Housing may have access to unique assistance programs.
Maine HOPE (Home Ownership Protection for un Employment): This program can make up to four of your mortgage payments if you have lost your job. The funds are placed as a non-interest-bearing junior lien on the property, which is repaid only when you sell the home or pay off the mortgage.
Maine Housing Home Affordable Modification Program (HAMP): For Maine Housing borrowers at risk of foreclosure, HAMP may reduce the principal balance of your loan to lower your monthly payments. The reduced amount becomes a no-interest junior lien that is repaid when the home is sold or the first mortgage is paid off.
Options to Gracefully Exit Your Home
If keeping the home is not financially feasible, these alternatives can mitigate the damage to your credit.
Pre-Foreclosure Sale (Short Sale): This allows you to sell your home for less than the total amount you owe, with your lender's approval. While it impacts your credit, it is generally less damaging than a foreclosure.
Deed-in-Lieu of Foreclosure: This involves voluntarily transferring the title of your property to the lender in exchange for being released from your mortgage obligation. You typically must have first attempted to sell the home and have no other liens on the property.
A Directory of Maine's Active Housing Assistance Programs
Beyond direct lender negotiations, Maine offers a variety of programs to provide legal protection and financial support to homeowners.
Resource/Program Name
Who It's For
Type of Help Provided
How to Access
Foreclosure Prevention Hotline
Any Maine homeowner at risk of foreclosure.
Free advice, information, and referrals to
Call 1-888-664-2569.
HUD-Approved Housing Counseling
Homeowners needing financial guidance and negotiation support.
Free financial counseling, budget planning, and lender negotiation.
Find an agency via HUD's website or the hotline.
Maine Foreclosure Diversion Program
Homeowners who have been served with foreclosure court papers.
Free mediation with the lender to find alternatives to foreclosure.
Request mediation when you file an Answer with the court.
Pine Tree Legal Assistance
Low-income homeowners facing foreclosure or complex legal issues.
Free legal advice and representation in civil cases.
Contact a local office or call the Volunteer Lawyers Project.
General Assistance (GA)
Individuals and families unable to meet basic needs.
Vouchers that can be used for housing costs, including mortgage payments.
Apply in person at your local municipal or town office.
USDA Section 504 Home Repair
Very-low-income homeowners in eligible rural areas.
Low-interest loans and grants for essential home repairs.
Contact a local USDA Rural Development office.
State and Legal Resources
These resources provide legal protections to ensure homeowners are treated fairly.
Maine Foreclosure Diversion Program: Maine law provides a crucial protection for homeowners: the right to mediation. If your lender files for foreclosure, you have the right to request a meeting with your lender in a neutral setting to explore all possible alternatives. This is a legal right you can exercise after being served with court papers.
Pine Tree Legal Assistance: This non-profit provides free legal services in civil matters, including foreclosure defense, to eligible low-income Mainers. They can help you understand your rights, file court documents, and represent you in mediation or court.
Municipal and Community-Based Aid
Local support systems can provide a direct financial lifeline.
General Assistance (GA): Every municipality in Maine operates a General Assistance program to help residents who cannot afford basic necessities. This program can provide vouchers to pay for a variety of needs, including making a mortgage payment to prevent homelessness.
Federal Programs for Specific Homeowners
Certain federal programs are targeted to assist specific populations.
USDA Rural Development Section 504 Home Repair Program: This resource can address a root cause of financial distress. Unexpected, costly home repairs can deplete savings and lead to mortgage delinquency. The Section 504 program provides low-interest loans up to $40,000 and grants up to $10,000 for elderly, very-low-income homeowners to remove health and safety hazards.
Protecting Yourself: How to Identify and Avoid Foreclosure Scams
Homeowners in financial distress are often targeted by predatory "foreclosure rescue" scams. Recognizing the warning signs is the best defense against these fraudulent companies.
Be extremely wary of any person or company that:
Guarantees to Stop a Foreclosure: No one can guarantee this outcome.
Charges High Upfront Fees: Demanding a large payment before providing any services is a major red flag.
Tells You to Stop Paying Your Lender: Never send your mortgage payment to anyone other than your mortgage lender.
Asks You to Sign Documents You Don't Understand: Scammers may try to trick you into signing over the deed to your home.
Claims to be from the Government: Verify any such claims by contacting the official agency directly.
The most important thing to remember is that legitimate assistance from HUD-approved housing counselors and state-run hotlines is always free. If you encounter a potential scam, you can file a complaint with the Maine Bureau of Consumer Credit Protection. By relying on trusted, no-cost resources, you can safely navigate your options.
Frequently Asked Questions
Is the Maine Mortgage Relief Program still accepting applications in 2025?
As of late 2025, the federally-funded Homeowner Assistance Fund (HAF), which powers this program, has likely exhausted its resources or is nearing its final deadline. Homeowners should immediately visit the official Maine Housing website to verify the current application status, as availability may be extremely limited or closed.
What specific housing-related expenses does the program cover?
The Maine Mortgage Relief Program can provide funds for more than just your primary mortgage payment. Eligible expenses often include overdue property taxes, homeowner’s insurance, condominium or HOA fees, and utility payments. The goal is to provide comprehensive support to prevent homeowner displacement and foreclosure in Maine.
Is assistance from the Maine Mortgage Relief Program a loan I have to repay?
No, this is a key benefit. Financial assistance received through the Maine Mortgage Relief Program is a grant, not a loan. The funds are designed to help you catch up on housing costs and do not need to be repaid, providing direct financial relief to qualifying Maine homeowners.
Can I receive help if I own my home but am only behind on property taxes?
Yes. The program is designed to prevent foreclosure from any eligible cause, including tax liens. If you own your home outright but are facing delinquency on your property taxes, you may still qualify for assistance through the Maine Mortgage Relief Program, provided you meet all other eligibility criteria.
What are the basic income requirements to qualify for mortgage help in Maine?
To qualify, your household income must be at or below 100% of the Area Median Income (AMI), with priority sometimes given to those below 80% AMI. Income limits vary by county and household size. Check the official Maine Housing guidelines for the specific income cap applicable to your location.
How are funds from the Maine Mortgage Relief Program distributed after approval?
Funds are not paid directly to the homeowner. Upon approval, the program makes payments directly to your mortgage servicer, local tax authority, insurance company, or utility provider. This ensures the assistance is applied correctly and immediately resolves the delinquency, helping you avoid foreclosure.
Does applying for the Maine Homeowner Assistance Fund (HAF) hurt my credit score?
Applying for the Maine Mortgage Relief Program does not negatively impact your credit score. In fact, the program is designed to protect your credit by providing the funds needed to cure delinquencies and avoid foreclosure proceedings, which would severely damage your credit history.
Can I apply for assistance for a second home or an investment property?
No, the program is strictly for a homeowner's primary residence located within the state of Maine. Vacation homes, second homes, and rental or investment properties are not eligible for assistance under the guidelines of the Maine Mortgage Relief Program. You must occupy the property as your main home.
What key documents are required for the application process?
Applicants typically need to provide government-issued photo ID, proof of income (like pay stubs or tax returns), a mortgage statement or property tax bill, and utility statements. You will also need to sign an attestation form confirming a COVID-19 related financial hardship was the cause of your delinquency.
What if my mortgage is not with a traditional bank?
The Maine Mortgage Relief Program can assist with various types of home loans, not just those from large banks. This includes mortgages from credit unions, privately held mortgages, and contracts for deed. The critical factor is having a formal, documented home financing or ownership obligation.
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