SUMMARY OF MASSACHUSETTS
The Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust,
- 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.
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
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
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. If no
individual meets the lender's (mortgagee) minimum bid,
then a representative from the bank places a bid and
purchases the property. The property is now considered
bank-owned, or REO (real estate owned).
In Massachusetts, the borrower has no rights of
redemption after the sale.