Stop Foreclosure in Massachusetts


How to Stop Foreclosure in Massachusetts

Massachusetts passed a law in 2007 that gives homeowners up to three months to pay past-due mortgage payments. Under the state’s 90-day “right to cure” law, borrowers may also request a detailed account of their loan and more information about how much is owed.

Some things you need to know about Foreclosure

One of the important concepts you need to know about foreclosure would have to do with the process that is undergone for default customers. This basically means that there when you as the customer for example can no longer pay for your debts or loans, then the property you are meaning to buy would simply go into a default state. By default this means that the foreclosure process takes your property back without considering the money you have already spent for it for a time.

Before default is taken into practice, the lenders will usually contact you to make arrangements and discuss as to whether or not you can still pay for your debt. During this time, it is best to take to the lenders rather than hide by lying that you are not around or have flown to another country because this will reflect upon your records too. Chances are, there would also be some bank counseling that you might want to attend.

If in case you admit that you can no longer pay for your debt, there are still several options that will be offered to you. For one, you might want to check out Judicial foreclosure. This takes the longest, around three to six months at least because of its tedious process of waiting for some papers, selling the property and or auctioning it.

Another type would be sale of property. The lenders can simply sell the home at an auction and then upon being sold, the new owners can immediately transfer to their new home. If in case you still reside there, you can easily be thrown out without second thought.

These things about foreclosure are worth knowing because you wouldn’t really know when they will come in handy for you.

Synopsis of Massachusetts Foreclosure Laws

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 90 days

Right of Redemption: No

Deficiency Judgments Allowed: No

In Massachusetts, lenders may foreclose on deeds of trusts or mortgages in default using either an entry by possession or non-judicial foreclosure process.

Foreclosure by Possession

After the borrower defaults on the mortgage, the lender may recover possession of the property by: 1) obtaining a court order; 2) entering the property peaceably; and 3) by proper consent of the buyer. If the lender maintains possession peaceably for three years from the date of possession, the borrower loses all rights of redemption.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the foreclosure may proceed as follows:

A notice of sale must be recorded in the county where the property is located. The notice must also: 1) be sent, by registered mail, to the borrower at his last known address at least fourteen (14) days prior to the foreclosure sale; 2) published once a week for three (3) weeks, with the first publication being at least twenty one (21) days before the sale, in a newspaper of general circulation within the county where the property is located.

Said notice must contain the place, time and date of the foreclosure hearing, the date the mortgage was recorded, the borrowers name, the amount of the default and the terms of the sale.

The sale must be conducted at public auction on the date, time and place specified in the notice of sale. The property will be sold to the highest bidder.

The borrower has no rights of redemption.

Where to go to for Foreclosure Help

Boston Regional Office

Thomas P. O’Neill, Jr. Federal Building
10 Causeway Street, 3rd Floor
Boston, MA 02222-1092

Phone: (617) 994-8200
Fax: (617) 565-6558
TTY: (617) 565-5453

Jurisdiction: State of Massachusetts

Richard A. Walega
Regional Administrator

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Stop Foreclosure Early

Star Mortgage
340 Manley Street
West Bridgewater, MA

Real Estate Solutions 4 All
(508) 963-1648
244 Belmont St. Unit 615
Worcester, MA
189 Main
Milford, MA

Emerson Lending
179 Great Road
Acton, MA

First Eagle Mortgage
44 Maple Street
Danvers, MA

Diamond Funding Corporation
189 Main Street
Milford, MA

Interate Mortgage Corporation
978-688-2480 Ext 14
232 Pleasant Street
Methuen, MA

First Call Mortgage Company
100 Brickstone Square
Andover, MA

SB Mortgage Group Inc
206 Southbridge St
Auburn, MA

Star Mortgage
340 Manley Street
West Bridgewater, MA