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Massachusetts allows both the Non-Judicial and Judicial Foreclosure processes. If the original loan documents do not contain a “power of sale” clause, then the Judicial Foreclosure process must be followed. This process requires the lender to sue the borrower to obtain a court order to foreclose. Then the lender must take possession of the property peaceably with the proper consent of the borrower. If the lender holds possession of the property for three years, then the redemption period of the borrower has expired.
Non-Judicial Foreclosure is used when the original loan documents contain a “power of sale” clause, authorizing the lender to sell the property in the event of a default. The notice of sale must be sent to the borrower by registered mail at least thirty (30) days before the scheduled sale date. For three (3) consecutive weeks, the notice must be published in a magazine that is generally circulated in the county in which the property is located. The publication of the notice must begin at least twenty-one (21) days before the sale date.
The sale of the property is conducted as a public auction at the place and date specified in the notice of sale.
The borrower does not have a right to redeem the property if the Non-Judicial Foreclosure process is used. |
