In the state of Massachusetts, the most common procedure that lenders use when they foreclose on a homeowner is called a non judicial foreclosure. When a lender decides to use this method to foreclose on a borrower, typically it is done outside the courts.
Even though this does not require a court action, there is a notice required by your mortgage servicer to be properly served, called a foreclosure by sale. Originally, when you signed your mortgage contract, there is a provision in there that allows the lender to sale the property in order to satisfy the debt in the event you default on the mortgage, which is sometimes referred to as a bond in your state.
Typically, when you're 30 days late on your first mortgage payment you're looking at about 90 to 180 days plus before your mortgage servicer will go through with a foreclosure sale. It may take about 75 - 90 days plus from the date that you receive a foreclosure notice from your mortgage servicer to place your home at auction.
Please keep in mind that this timeline varies from mortgage servicer to mortgage servicer and also from state to state. We have seen many homeowners go way beyond the typical time frames listed above. Some have been able to stay in their homes from 12 months to 24 months payment free as they try to negotiate a loan modification or buy time before they walk away from their underwater mortgages.
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