Massachusetts laws

[Cape Cod]

What are the foreclosure laws regarding Massachusetts?

Thanks

[Moe Bedard]

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.

[ez101]

What are the foreclosure laws in Virginia, specifically Prince William County. I have a friend that had a notice of acceleration letter and suddenly after 30 days was sent a letter from a realtor on her door that the property have been foreclosed and giving her a notice to vacate. As per her first letter of acceleration, she will be notified of the date and time of the foreclosure sale and the terms thereof. But nothing was sent to her and notice of sale date. Can you please enlighten us on this because this is really scary wherein you are caught offguard. This is causing her alot of stress. Thanks

[Moe Bedard]

I don't believe the laws are county specific...........but here is the Virginia Foreclosure Laws for the state...........if you friend requires a more specific understanding of the law.........they may want to consult with a real estate attorney familiar with the foreclosure laws of the state.





Judicial Foreclosure Available: Yes



- Non-Judicial Foreclosure Available: Yes



- Primary Security Instruments: Deed of Trust, Mortgage



- Timeline: Typically 60 days



- Right of Redemption: Varies



- Deficiency Judgments Allowed: Yes



In Virginia, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.



Judicial Foreclosure



The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.



The borrower has two hundred forty (240) days from the date of the sale to redeem the property by paying the amount for which the property was sold, plus six (6) percent interest.



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. However, additional requirements must be met, as outlined below in section one (1).

Even when the deed of trust makes allowances for advertising the foreclosure sale, Virginia Statutes require ads to be published no less than once a day for three days, which may be consecutive days. These requirements are in addition to the advertising terms stipulated in the deed of trust. If the deed of trust does not provide for advertising, then the ad shall be run once a week for four successive weeks. However, near a city, an ad on five different days, which may be consecutive, will be sufficient.

A copy of the advertisement or a notice with the same information must be mailed to the borrower at least 14 days before the foreclosure sale.

The foreclosure sale ad must include anything required by the deed of trust and may include a legal description of the property, a street address and a tax map identification or general information about the property's location. The notice must include the time, place and terms of sale. It must give the name of the trustee and the address and phone number of a person who will be able to respond to inquiries about the foreclosure sale.

Any time before the sale, the borrower may cure the default and stop the sale by paying the lien debt, costs and reasonable attorney's fees.

The sale, which may be held no earlier than eight (8) days after the first ad is published and no more than thirty (30) days after the last advertisement is published, is to be made at auction to the highest bidder. Any person other than the trustee may bid at the foreclosure sale, including a person who has submitted a written one-price bid. Written one-price bids may be made and shall be received by the trustee for entry by announcement of the trustee at the sale. Any bidder in attendance may inspect written bids. Additionally, the trustee may require bidders to place a cash deposit of up to ten (10) percent of the sale price, unless the dead of trust specifies a higher or lower amount.

In the event of postponement of sale, which may be done at the discretion of the trustee, advertisement of such postponed sale shall be in the same manner as the original advertisement of sale.

Once the sale is complete, the proceeds will go to: 1) the expenses of executing the trust; 2) to discharge all taxes, levies, and assessments, with costs and interest if they have priority over the lien of the deed of trust; 3) to discharge in the order of their priority, if any, the remaining debts and obligations secured by the deed, and any liens of record inferior to the deed of trust under which sale is made; 4) any remaining proceeds go to the borrower.


Lenders may obtain deficiency judgments, without limits, in Virginia.

[ez101]

Thanks ***,
It seems like these were not followed only a default letter was sent and it said at the bottom and top "Certified Mail/Return Receipt Requested. She did not receive the other letters if there were any. I have advised her to get to Legal Aid right away. This is really illegal on what they did.

thanks for your help.. But I believe she should fight it. She was given notice to vacate by the 17th of January.

thanks for your help