Foreclosure Laws in Massachusettes (MA)Topic: Foreclosure
Before any foreclosure can commence in this state, a ruling from the land court must be obtained to ensure that the home owner is not under the protection of the Soldiers and Sailors Civil Relief Act of 1940. If the home owner is protected by this law, then this will postpone the foreclosure process quite a long time. This law was enacted to protect active members of the military.
Once judgment authorizing the foreclosure is obtained from the land court, the bank can move forward with the sale of the home. Massachusetts Law does not require that the home owner be notified before the scheduling of the sale date. The language of the mortgage on the home may require this notification however, and this type of scenario. The homeowner will be apprised of the upcoming sale before it occurs. The most popular method of foreclosure in this state is the non-judicial process. As indicated in the name, court action is not required to move towards the sale of the house. The determining factor which allows this type of foreclosure to be followed is whether or not a power of sale clause was written into the deed of trust or mortgage. If there is a power of sale clause that exists, then non-judicial foreclosure does not appear in the deed of trust or mortgage, the in court process must be followed. Because, non-judicial process saves the bank both time and money, and because most mortgages or deeds of trust do contain a power of sale clause, this method is used more than any other. The attorney for the bank, called the trustee, will push the process along, following all the notification guidelines required by the state. An actual licensed auctioneer will conduct the sale itself, when the time comes.
The 1st step in non-judicial foreclosure is that the trustee must record the notice of sale with the county in which the home is located. A notice of sale with the same language as the one recorded with the county must be mailed to the homeowner a minimum of fourteen days before the scheduled sale date. In this state, the bank advertises the notice of sale in a local paper with circulation in the courts where the home is located. This advertisement, must be run once a week for three weeks leading up to the scheduled sale date. Other parties with an interest or attachment to the property are also sent a letter or notice of sale at this same time. On the day of the foreclosure sale, a licensed professional auctioneer, must conduct the sale. The sale is held on the property itself. The person offering the highest bid at this auction is called the winning bidder. They must pay a percentage of the bid that won them the house at that time. Within the next thirty days, the winning bidder must come up with the balance of the price that was offered at the sale. Judicial foreclosures can be used in this state. This is referred to as foreclosure by entry or action. This process begins with the bank filing a complaint with the court along with what is called a 'Lis Pendens'??. A 'Lis Pendens'?? is a document that is recorded to give public notice that a property is being foreclosed upon. The bank must wait upon the court to issue a final judgment of foreclosure, before they can sell a home. This is more costly and time consuming, than out-of-court foreclosure. So unless they must, banks do not choose this method.
Out-of-court foreclosures in this state are typically 75 to 90 days from beginning to end. There are ways to extend or stall the time frame. These methods include opposing the foreclosure in court, seeking adjournments and filing bankruptcy. Deficiency judgments are allowed in Massachusetts. When judicial foreclosure is used, the bank may seek more money than was generated by the sale of the property. They can seek this money from the former homeowner and only for the difference between what is owed and what the home sold for at auction. It is hard to get a deficiency judgment and further, it opens the door to a right of redemption period for the former home owner, so it is generally no sought after in this state.
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No. It was just the way things tunred out. I doubt that this is a common problem. Your headline had me hoping for something with teeth in it. The owner was lucky to get a MOD anyway, though Ive seen mods that were not as good as the original loan! Mods were a GIANT SCAM anyway. OBummers plans were open ended. The only people who could qualify for a mod were those who had no income problems and had good credit. HAMP should have been called HEMP, because one had to be smoking pot to live through the whole stinking process only to be tunred down after months and then owe a huge back due to the lender.
I feel saistfeid after reading that one.
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You made a few good points there. I did a search about the topic and hardly got any specific details on other websites, but then great to be here, really, appreciate that.
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