Jerry Z's Real Estate Resources

A place for real estate buyers, sellers and investors

What you should know about MA Foreclosure Law

In MA, when you are late with your mortgage payments for about 150 days your lender can file a lawsuit against you in land court to start the proceedings to auction your house to recover as much as possible from what’s owed .

Once you receive a notice of default, a letter requesting your presence or written response to this legal claim (also called the Soldier’s and Sailor’s letter), you typically have 90 days until an auction date is set on your house.

After this letter, your home will be put in the paper 3 consecutive weeks to advertise the auction and then on the day of the auction an auctioneer, a representative from the bank, and potential bidder, will show up on your doorsteps to sell your house.

If you do nothing, then all of the above will happen. What most people in this situation don’t know is that you have options!

WHAT ARE YOUR OPTIONS?

1. You can contact your lender to work out a modification of the interest rate and/or capitalization of back payments back into your principal to allow you to clear back payments and/or lower your payments

BEWARE OF COMPANIES THAT CHARGE YOU UP FRONT $$$ TO DO THIS FOR YOU – MOST WILL TAKE YOUR MONEY AND RUN, OR NOT REALLY DO THIS AS QUICKLY AS THEY SAY THEY WILL

2. You can sell your house at any time before the auction for a profit and settle with the bank for back payments

3. If you owe more than your house is worth you, or an experienced real estate professional, can negotiate with the lender to accept a lesser payment than what is owned to settle the debt and stop foreclosure = SHORT SALE (SEE THE SHORT SALE PAGE FOR MORE INFO ON THIS) This will stop the foreclosure, show up as a settled claim on your credit report, and allow you apply for another home mortgage within 2 yrs instead of 5-7 yrs if a foreclosure happened.

4. You can hand over the deed to your house to the bank which will stop the foreclosure, but will allow the bank to auction your house sooner and most likely they will pursue you for any money short of full payoff.

5. Declare bankruptcy. Consult an attorney about this.

6. Do nothing. Get foreclosed on. Your house is auctioned. The bank will most likely pursue you for any money they weren’t able to recoup from the auction in a deficiency judgment, where they may seize assets and/or garnish wages.

WE CAN HELP EXPLAIN ANY OF THESE OPTIONS AND HELP YOU DECIDE WHICH ONE IS BEST FOR YOU AND YOUR SITUATION – EMAIL US – CALL US

jerryzrealestate@gmail.com – 413-588-8588
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HELPFUL LINKS AND RESOURCES

For updated news on Foreclosures around the country check out REALTYTRAC.COM
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For any questions about foreclosures, or to comment on this information, whether you are a homeowner facing foreclosure and looking for help or a buyer looking to buy a foreclosure, please leave a comment below with as much information as you can include.

PLEASE BE SURE TO INCLUDE YOUR FULL NAME, PHONE NUMBER OR EMAIL AND ADDRESS OF PROPERTY

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