Judicial/ Non-Judicial Foreclosure: Available/ Available
Right of Redemption / Deficiency Judgment: Yes / Depends
Timeline: 60 Days, Can vary depending on individual cases
Deed of Trust / Mortgage as Security Instruments: Deed of Trust, Mortgage
Both Judicial and Non-Judicial foreclosure processes can be followed in Massachusetts.
Judicial/ Foreclosure process:
In a Judicial foreclosure process, the lender needs to file a case in a court present in the county where the property is located. The court determines if the borrower has defaulted on the mortgage loan, and it also determines the amount that needs to be paid by the borrower. If the borrower does not pay up the said amount within a certain time as granted by the court, the foreclosure order is proposed through a notice of sale.
Non-Judicial Foreclosure process:
If the power of sale clause exists in the deed of trust/ mortgage document, the Non-Judicial foreclosure process can be followed. The power of sale authorizes the lender to sell the said property in case the borrower defaults on the loan. The foreclosure proceedings can be conducted either by the borrower or their authorized agent, referred to as Trustee. The following guidelines can be followed for the Non-judicial foreclosure process.
If the power of sale mentions the time/location and other terms of the foreclosure sale, then the same can be followed. If not, the following guidelines need to be adhered to.
The notice of sale containing all the details of the foreclosure sale including the venue, date, time, property information, lender/buyer correspondence, etc. needs to be published at least one day for four consecutive weeks in a local newspaper available in the county.
This notice should be pasted on the property (to be sold) within fifteen days of the first notice.
The foreclosure sale is conducted by the sheriff or a representative of the trustee between 9:00 AM to 4:00 PM on any working day as advertised in the notice of the sale. The property is then sold to the highest bidder in a public auction.
If the foreclosure sale is postponed (by less than a week), a notice mentioning the same needs to be pasted on the location where the sale proceedings were supposed to be held. If the foreclosure sale needs to be postponed by more than a week, the entire procedure as outlined before, needs to be followed.