How to Stop a Foreclosure in Massachusetts

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How to stop a foreclosure in Massachusetts
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Types of foreclosure in Massachusetts
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Massachusetts Foreclosure Process

• Notice of Default and Right to Cure
• The foreclosing bank must personally deliver or
  mail a notice to the borrower giving 90 days to
  bring the loan current (called curing the
  default). The borrower gets the right to cure
  the default once during any five-year period.
  (Mass. Gen. Laws ch. 244, 35A).
• Notice of Intent to Foreclose and of Deficiency
  After Foreclosure of Mortgage
• The bank has to mail the borrower a Notice of
  Intent to Foreclose and of Deficiency After
  Foreclosure in Massachusetts of Mortgage at
  least 21 days before the sale date, if it wants
  to get a deficiency judgment (see below). (Mass.
  Gen. Laws ch. 244 17B).

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Massachusetts Foreclosure Process

• Notice of Sale
• The bank then publishes a notice of sale once a
  week for three weeks and mails the notice to the
  homeowner at least 14 days before the sale.
  (Mass. Gen. Laws ch. 244 14).
• Foreclosure Sale
• At the foreclosure sale, the property is sold to
  the highest bidder. Often, the bank buys the home
  at the foreclosure sale by making a credit bid.
• If the bank buys the home at the sale, the
  property becomes known as REO.

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Steps to avoid foreclosure in Massachusetts
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Steps to avoid foreclosure in Massachusetts

• Contact Your Lender
• After familiarizing yourself with Massachusetts
  foreclosure law, you should give your lender a
  call to see if you are eligible for modification
  or refinancing.
• Typically, your lender will offer refinancing if
  your mortgage is current and you have exhibited a
  stellar history of on-time payments.

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Steps to avoid foreclosure in Massachusetts

• Apply for Refinancing or Modification
• When corresponding with your lender, it is
  essential to know about modification or
  refinancing. Both of these maneuvers will
  effectively lower your monthly payment amount to
  better fit your financial situation.
• In addition to refinancing, you can apply for
  forbearance, which is a temporary suspension of
  your mortgage obligation. This maneuver is
  typically only achieved if you can definitely
  prove that you suffered a hardship that resulted
  in loss of income.

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Steps to avoid foreclosure in Massachusetts

• Contact State Departments
• If your homeowner is not willing to negotiate,
  you should call the state department to help you
  out.
• Also you must not be delayed by more than one
  month when contacting the state department.

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Other steps to avoid foreclosure in Massachusetts

• Engage in short sale
• File for bankruptcy
• For more info, visit us at consumerproponents.org

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