Understanding the foreclosure process in Massachusetts is an important part of navigating your own home foreclosure. Foreclosure might seem daunting, but understanding the process empowers you to navigate it effectively. Let’s delve into the foreclosure process in Boston, Massachusetts, and how Hilary Dunlavey Homes can guide you through it.
Understanding the Foreclosure Process in Massachusetts
What is foreclosure anyway?
Foreclosure is the legal process that lenders use to take back property securing a loan, generally after the borrower stops making payments.
Foreclosure is no fun. But just know that it’s not the end of the world.
When you know how foreclosure in Massachusetts works… it arms you with the knowledge to make sure you navigate it well and come out the other end as well as possible.
The Basic Stages of A Foreclosure
Foreclosure procedures vary by state. Connect with us by calling 617.646.9334 or through our contact page to have us walk you through the specific foreclosure process here locally in Boston.
In either scenario, foreclosure typically doesn’t go to court until 3-6 months of missed payments have elapsed. Usually (but not always), a lender will send out many notices that you are in arrears – overdue or behind in your payment.
In Massachusetts, the two primary methods are judicial sale and power of sale, each with its own legal requirements and timelines..
Under Judicial Foreclosure:
- The lender initiates a court lawsuit.
- You receive a court letter demanding payment.
- You have a grace period to pay. Usually, you’ll have 30 days to bring payment to court to avoid foreclosure.
- If unpaid, the property is auctioned.
- Once the property is sold, the sheriff serves an eviction notice and forces you to immediately vacate the property.
Under Power of Sale (or Non-Judicial Foreclosure):
- The mortgage lender serves you with papers demanding payment, and the courts are not required – although the process may be subject to judicial review.
- After the established waiting period has elapsed, a deed of trust is drawn up and control of your property is transferred to a trustee.
- The trustee can then sell your property to the lender at a public auction (notice must be given).
Anyone who has an interest in the property must be notified during either type of foreclosure.
For example, any contractors or banks with liens against a foreclosed property are entitled to collect from the proceedings of an auction.
What Happens After A Foreclosure Auction?
After a foreclosure is complete, the loan amount is paid off with the sale proceeds.
Sometimes, if the sale of the property at auction isn’t enough to pay off the loan, a deficiency judgment can be issued against the borrower.
A deficiency judgment is where the bank gets a judgment against you, the borrower, for the remaining funds owed to the bank on the loan amount after the foreclosure sale.
Some states limit the amount owed in a deficiency judgment to the fair value of the property at the time of sale, while other states will allow the full loan amount to be assessed against the borrower.
How to Avoid Foreclosure:
Seeking assistance from experienced professionals like Hilary Dunlavey Homes can provide alternatives to foreclosure, such as negotiating with the bank or facilitating a quick sale of the property. Experienced investors can negotiate discounts or even eliminate debt, ensuring a smoother transition.
Here’s a great resource that lists the state by state deficiency judgment laws, since every state is different.
Generally, it’s best to avoid a foreclosure auction. Instead, call up the bank, or work with a reputable real estate firm like us at Hilary Dunlavey Homes to help you negotiate discounts off the amount owed to avoid having to carry out a foreclosure.
Experienced investors can help you by negotiating directly with banks to lower the amount you owe in a sale – or even eliminate it, even if your home is worth less than you owe.
If you need to sell a property near Boston, we can help you.
We buy houses in Boston Massachusetts like yours from people who need to sell fast.
Hilary Dunlavey Homes specializes in assisting homeowners facing foreclosure. We offer personalized solutions tailored to your needs, including negotiating with lenders to reduce debt, exploring refinancing options, or facilitating a quick sale of your property. Our team has the expertise and resources to guide you through this challenging time, providing support and guidance every step of the way.
Navigating foreclosure can be overwhelming, but with Hilary Dunlavey Homes by your side, you can explore alternatives and find solutions tailored to your needs. If you’re facing foreclosure in Boston, Massachusetts, don’t hesitate to reach out.
Give us a call anytime 617.646.9334 or
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Another Foreclosure Resource For Boston Massachusetts HomeOwners: