Massachusetts Foreclosure Law Summary 
- 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.
More information on Massachusetts foreclosure laws.
