- 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.
More
information on Massachusetts foreclosure laws.
