While Massachusetts provides for a non-judicial foreclosure, prior to sale, an action must be filed with the Land Court to obtain a judgment that the owners of the subject property are not protected under the Soldiers’ and Sailors’ Civil Relief Act of 1940, as amended. A complaint is filed with the Land Court and the court provides an Order of Notice which must be served, 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. A "power of sale" clause authorizes the sale of property to pay off the balance on a loan in 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.
Power of Sale Foreclosure Guidelines
If the mortgage contains a power of sale clause, the Lender follows the statutory requirements and conducts a foreclosure sale.
A notice of sale must contain the place, time and date of the foreclosure sale, the date the mortgage was recorded, the borrower(s) name and the terms of the sale. The sale must be conducted at public auction on the date, time and place specified in the notice of sale. The property will be sold to the highest bidder.
The notice must be sent by certified and regular mail to the borrower at their last known address. The notice must also be sent to any party with a recorded interest in the property within 30 days of the scheduled foreclosure sale. The notice must be published once a week for 3 weeks with the first publication being at least 21 days before the sale in a newspaper of general circulation within the county where the property is located.
The borrower has no rights of redemption.
Information provided by the law firm of Marinosci Ceritto & Shapiro, P.C. (www.mcs-lawfirm.com).