Massachusetts Foreclosure Law allows for both judicial and non-judicial foreclosure. The vast majority of foreclosure proceedings are done judicially. In 2008 a law requiring lenders send a 90-day demand letter to the borrower in default prior to initiating foreclosure proceedings was passed. As a result, the foreclosure process now takes from 4-6 months, including the Land Court Soldiers’ and Sailors’ judgment.
Massachusetts foreclosure law provides for a non-judicial foreclosure as well. Prior to sale, an action must be filed with the Land Court in order to obtain a judgment and provided that the borrowers of the property are not protected under the Soldiers’ and Sailors’ Civil Relief Act of 1940.
the complaint is filed with the Land Court and the court provides an Order of Notice which must be served on the borrower and any interested parties, published and recorded prior to judgment entering.
The non-judicial process of foreclosure is used when a mortgage contains a Statutory Power of Sale clause. This “Power of Sale” clause is added to a mortgage in order to authorize the sale of the property the event of default. In mortgages where a power of sale clause exists, the power given to the lender to sell the property may be executed by the lender.
Notice of Sale & Auction
If the mortgage contains a power of sale clause, and if the lender chooses to do so, the Lender follows the statutory requirements per Maryland § 7-105 – Sales and conducts a foreclosure sale.
A Notice of Sale (NOS) is issued by the court. This NOS must contain the place, time and date of the foreclosure sale, the date the mortgage was recorded, the borrowers name and the terms of the sale. The sale must be conducted at public auction, usually at the county courthouse, on the date, time and place specified in the Notice of Sale.
The property is sold to the highest bidder.
The notice must be sent by certified mail as well as regular mail to the borrower at their last known address. The notice is also be sent to any party with a recorded interest in the property. This must all be completed within 30 days of the scheduled foreclosure sale. The notice must be published once a week for 3 weeks in the newspaper, with the first publication being at least 21 days before the sale. The newspaper must be of general circulation within the county where the property is located.
The borrower has no right of redemption under Massachusetts Foreclosure law.