Summary of Massachusetts Foreclosure Law
by Alexander ThomasJudicial as well as Non-judicial foreclosures are followed in Massachusetts.Typically it takes around 90 days for foreclosure in Massachusetts and there is no right of redemption Massachusetts.
Which law provision governs foreclosure in Massachusetts?
You can refer for this in Chapter 244 of the General Laws of Massachusetts.
What happens during foreclosure by possession in Massachusetts?
Once borrower defaults on the mortgage, lender can take possession of the property in three ways.
By obtaining court order for possession
Entering in property peacefully
with mutual consent of buyer
What happens during Non-Judicial Foreclosure in Massachusetts?
Non-judicial foreclosure is conducted only when power of sale clause exists in deed of trust/mortgage. This clause allows borrower pre-authorizes the sale of property to pay off the balance loan in the incidence of their default. In such cases power is given to lender to sell the property by himself or his representative who generally referred as trustee. Guidelines for such procedure are mentioned under “Guidelines for power of sale foreclosure".
Also care should be taken that the borrower is not subject to protection under the Soldiers' & Sailors' Civil Relief Act, which may postpone foreclosure action for active members of the U.S military.
Guidelines for power of sale foreclosure
If the deed of trust/mortgage contains a power of sale clause with specified time, place and terms of sale, then it should be followed otherwise foreclosure takes place as follows:
First notice of sale should be recorded at the county office. Same notice should be sent to the borrower at his last known address at least 14 days prior to the sale. It should be published in local newspaper once a week for three continuous weeks and first notice should appear at least 21 days before the sale. Notice should have date, time and place of the foreclosure hearing, the date on which mortgage was recorded, the amount of default, terms of sale. The property is sold to highest bidder at the auction. The winning bidder must pay some deposit on that day and rest within 30 days. The borrower does not have any right of redemption, but he is eligible for surplus in the sale (if any).
This is legal information; it should not be treated as legal advice.
To get more information:
http://www.entrusthome.com/28-stop-foreclosure-massachusetts.php
Article submitted Tuesday, November 06, 2007 & read 24 times.
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