Massachusetts Foreclosure Law Summary
Quick Facts
- 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.
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