Massachusetts Foreclosure Law

Massachusetts foreclosure law allows lenders to foreclose on mortgages and deeds of trust in default. Both judicial and non-judicial procedures are allowed, which means the foreclosure can be done in or out of court. The average wait time is 90 days.

Foreclosure by possession
This process allows lenders to take possession the property in three ways:
1) By filing a suit and obtaining a court order to foreclose;
2) By peaceably entering the home (without force or violence); and
3) By obtaining proper consent from the borrower.

If the lender successfully seizes the property and keeps it for three years, he or she officially gains possession and the borrower can no longer redeem it, even if they pay off the loan in full.

Non-judicial foreclosure A non-judicial foreclosure is followed when the mortgage or deed of trust does not contain a Power of Sale. This is a clause that basically allows the lender to auction off the home if the borrower defaults. The clause usually specifies the terms of the sale as well. If it doesn’t, the foreclosure is carried out in a state-designated manner.

Foreclosure begins when the lender files a Notice of Sale in the same county as the property in default. The same notice must also be sent via registered mail to the borrower at least 14 days before the sale date, and published in a local newspaper at least once a week for three consecutive weeks. The first publication should appear no less than 21 days before the foreclosure sale.

The notice must also state the following information:
-the name of the borrower
-the amount of the default
-the date when the mortgage was originated
-the date of the foreclosure hearing
-the time, date, and other terms of the sale

If the borrower fails to cure the default on time, the home is put up for sale. This is usually done by a public auction where the property is sold to the highest bidder. The state does not give a Right of Redemption to the borrower, which means he or she cannot redeem the property once the sale is done.

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