What are the Foreclosure Laws in Massachusetts?
The Commonwealth of Massachusetts laws that cover non-judicial foreclosures are found in Chapter 244 of the General Laws of Massachusetts. Both judicial and non-judicial foreclosures are covered under this statute. You can read the Massachusetts Foreclosure Laws.
How are Massachusetts mortgages foreclosed?
The primary method of foreclosure in Massachusetts involves what is known as non-judicial foreclosure. This type of foreclosure does not involve court action but requires notice commonly called foreclosure by sale.
When the mortgage is initially signed it will usually contain a provision called a power of sale clause which upon default allows the lender to foreclose on the property in order to satisfy the underlying defaulted loan which is sometimes referred to as a bond. An attorney usually acts as a representative of the lender to effectuate the sale which typically occurs in the form of an auction.
Auctions are conducted by an auctioneer. Because this is a non-judicial remedy there are very stringent notice requirements and the legal documents are required to contain the power of sale language in order to use this type of foreclosure method.
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