Judicial/ Non-Judicial Foreclosure: Available/ Available
Right of Redemption / Deficiency Judgment: No / No
Timeline: 90 Days, Can vary depending on individual cases
Deed of Trust / Mortgage as Security Instruments: Deed of Trust, Mortgage
Both Judicial and Non-Judicial foreclosure can be followed in Massachusetts.
Judicial/ Foreclosure by possession Process:
The lender may file a case in the court to obtain the court order for foreclosure, if the borrower defaults on the mortgage payments. Alternatively, the lender may enter the property peaceably or they can obtain the property with the consent of the buyer.
After the completion of three years of possession of the mortgage property by the lender, the borrower cannot re-claim their property via right of redemption.
Non-Judicial Foreclosure process:
If a power of sale clause exists in the mortgage / deed of trust documents, the non-judicial foreclosure process can be used. The power of sale authorizes the lender to foreclose on the mortgage property in case the borrower happens to default on the mortgage loan.
The foreclosure procedures can be executed by the lender or their authorized agent, referred to as Trustee, according to the following guidelines.
If the power of sale mentions the procedures to be followed and the location/time for the foreclosure sale, the same needs to be followed. Otherwise, the following guidelines are applicable.
A notice should be recorded in the recorder’s office of the county where the property is located, giving full details of the foreclosure sale along with all correspondence details.
This notice should also be advertised in a local newspaper available in the county for at least one day for three consecutive weeks. The first ad should be carried at least 21 days before the date of the sale. The notice should also be sent to the borrower and any other person mentioned in the deed at their last known address, at least 14 days prior to the date of sale.
All the details pertaining to the foreclosure sale needs to be included in the above mentioned notice including the date, time, location of the sale/auction, terms of sale, borrower’s/ lender’s name & correspondence details, etc.
On the date of the foreclosure sale, the mortgage property is sold-off to the highest bidder through a public auction. The borrower does not have a right of redemption when the property is foreclosed using this method.