Laws Pertaining To Massachusetts Foreclosures

A foreclosure is a legal proceeding where the mortgage of a property is court ordered to be terminated

. Specifically, it is the equitable redemption right that is terminated. There are certain pieces of information people should know, especially if they live in Massachusetts, about foreclosures. Here is some information on the laws that pertain to Massachusetts foreclosures.

In Massachusetts, many of the foreclosures are non judicial. This means that during the process, a court does not have to be involved. Instead, a notice is issued and this notice is typically referred to as a foreclosure by sale. When a person first signs a mortgage, there is a provision that is known as the power of sale clause in it. This means that if the loan that was given defaults, the lender has the right to foreclose the property. This is also sometimes referred to as a bond.

When a lender makes this decision, they will typically have an attorney that will represent them through the process. Since Massachusetts foreclosures are non judicial, properties are often times auctioned off so an adequate payment can be received. These actions will be held professionally by an auctioneer.

As for the requirements for the power of sale, under these laws, they person who issues the foreclosure, the lender, must record a notice for sale. The sale notice will pertain to where the property is located and this has to be done before taking any other type of action. These notices are sent out securely through either registered mail or certified mail so they recipient can receive the notice within two weeks before the sale date.

The notice has to be published one time per week for a three week period before the sale. These sale listings are typically featured in newspapers. The details of the notice will set what date and time for the property auction.

Some foreclosures are judicial in Massachusetts. This means that lenders have the option to go to court and have representation in a foreclosure proceeding. This means that the court will be the one to decide what the final judgment will be. In the laws, this type is called a foreclosure by entry or action. If a verdict is reached that sides with the lender, the property will be publicly auctioned off by the sheriff.

That was some information on laws regarding Massachusetts foreclosures. The official terminology for the laws gets very technical and lengthy and this is a simplified version. This information can help people decipher the laws a little bit easier.

by: Lance Thorington

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