For homeowners facing foreclosure in Massachusetts, the following is a summary of the state’s foreclosure laws:
Foreclosures in Massachusetts can be judicial, meaning the bank must file a lawsuit in court in order to foreclose.
Foreclosures in Massachusetts can also be nonjudicial but a court must confirm the sale.
Massachusetts law requires the three notices:
- The bank must hand send a notice of default and right to cure to the homeowner, after which the homeowner has 90 days to cure the default. The bank can reduce the cure period to 90 days if it can prove an effort to negotiate was made with homeowner.
- If the homeowner does not respond to the offer of negotiation letter, the bank can reduce the cure period to 90 days.
- The bank must mail a notice of sale to the homeowner at least 14 days before the sale and publish the notice of sale once a week for three consecutive weeks in a local newspaper.
Massachusetts Foreclosure Protections
Massachusetts law provides protections in accordance with the federal Service Members Civil Relief Act.
Massachusetts also offers certain protections to homeowners with high-cost home loans. If the bank violates the state’s high-cost home loan law, the homeowner can cancel the loan and use cancellation as a defense to the foreclosure. The high-cost home loan law prohibits the bank from charging prepayment fees or increasing the interest rate after a default. The bank must attempt to modify certain high-cost and other predatory loans.
Reinstatement and Redemption
The homeowner has 150 days right to cure the default and reinstate the mortgage, yet this period can sometimes be reduced to 90 days. The homeowner can only exercise the right to cure once in five years.
Under Massachusetts law, the cannot redeem the home after a nonjudicial foreclosure.
In Massachusetts, the bank can request a deficiency judgment by mailing the homeowner a “Notice of Intent to Foreclose and of Deficiency After Foreclosure of Mortgage” at least 21 days before the sale. To obtain the deficiency judgment, the bank then has to file a lawsuit against the homeowner within two years after the sale.
In Massachusetts, if the former homeowner does not move out after the foreclosure sale, the new owner can then give a notice to leave and begin eviction proceedings. For information regarding how to avoid foreclosure in Massachusetts, visit HUD.gov.