Massachusetts Foreclosure Laws: Process, Timeline and Your Rights

Massachusetts law allows foreclosure without a court action when the mortgage contains a power of sale: after a default the lender may carry out the sale "without action" by following the statute's notice rules. A lender may also foreclose by peaceable entry or by a court action for possession; if a court enters a conditional judgment on a mortgage with a power of sale, the court orders the property sold under that power.

For an owner-occupied home of 1 to 4 units that is the borrower's principal residence, the lender must first send a written right-to-cure notice (by hand, or by first-class and certified mail) and wait at least 90 days before accelerating the loan or foreclosing. Before a power-of-sale foreclosure, the notice of sale must be published once a week for 3 successive weeks in a local newspaper, with the first publication at least 21 days before the sale, and must be sent by registered mail to the owner at least 14 days before the sale; junior lienholders of record must also be mailed notice at least 14 days before. If the lender wants to keep the right to sue for a deficiency, it must mail a notice of intention to foreclose with a deficiency warning by registered mail at least 21 days before the sale. A lender holding the loan by assignment must have the assignments recorded before the notice is mailed, and before publishing the notice the creditor must record an affidavit that it holds the note or is the note holder's authorized agent.

The statute sets these minimums: at least 90 days between the right-to-cure notice and acceleration or foreclosure on a principal residence (1 to 4 units); first newspaper publication of the sale notice at least 21 days before the sale; mailed notice to the owner at least 14 days before the sale. For certain higher-risk owner-occupied loans (for example, some interest-only, low-documentation or high loan-to-value loans), the creditor may not publish the sale notice until it has taken reasonable steps and made a good-faith effort to avoid foreclosure, including assessing the borrower's ability to make an affordable payment under a modified loan.

A homeowner whose principal residence (1 to 4 units) secures the mortgage has a 90-day right to cure a missed payment by paying all amounts due, without acceleration of the full loan balance. This right is available once in any 5-year period, regardless of who holds the mortgage. To cure, the homeowner pays late fees allowed by law and per-diem interest but cannot be charged a fee for using the right to cure, and is not liable for the lender's attorneys' fees incurred before or during the notice period. The notice must also tell the homeowner they may redeem the property by paying the total amount due before the foreclosure sale.

After a default, the owner may redeem the mortgaged property unless the lender has held possession after an entry for 3 years, or unless the property has been sold under the mortgage's power of sale. In other words, the right to redeem ends at a power-of-sale foreclosure sale; the statute does not provide a redemption period after that sale.

A lender may sue for a deficiency after a power-of-sale foreclosure, but only if it mailed the borrower a notice of intention to foreclose with a deficiency warning, by registered mail, at least 21 days before the sale, and signed an affidavit of that mailing within 30 days after the sale. The deficiency lawsuit must generally be filed within 2 years after the foreclosure sale.

Massachusetts' tenant-protection law for foreclosed properties (Chapter 186A) says a foreclosing owner — generally the foreclosing lender, an institutional mortgagee that takes title within 3 years of the foreclosure deed, or Fannie Mae or Freddie Mac — may not evict a tenant except for "just cause" (such as nonpayment of rent after written notice of the amount and where to pay, uncured material lease violations, nuisance or illegal use) or unless a binding purchase-and-sale agreement has been signed with a bona fide third-party buyer. Within 30 days of the foreclosure, the foreclosing owner must post and deliver a notice with its contact information and where to send rent, along with a written notice of the tenant's right to a court hearing before eviction. Tenancies with the former owner or the owner's child, spouse or parent, and non-arm's-length leases, are not covered.

Yes, for condominiums. A condominium association has a lien on a unit for unpaid common charges, enforced through a court action; once a court establishes the lien amount it orders the unit sold, with newspaper notice for 3 successive weeks starting at least 21 days before the sale. The lien has priority over a first mortgage only for up to 6 months of regular common-expense assessments before the enforcement action plus costs and reasonable attorneys' fees (not special assessments, late charges, fines or interest). The association must notify the owner and first mortgagee once charges are 60 days delinquent and give the first mortgagee 30 days' notice before filing suit. A sale under this procedure is free of any right of redemption.

Before a purchase and sale agreement is signed, sellers of residential premises must give buyers the state's standard lead-paint notification form and materials; sellers and their agents must disclose any known information about dangerous levels of lead, and buyers who choose an inspection must be given at least 10 days (or longer if agreed) to have it done.

When a city or town takes or sells land for unpaid property taxes, anyone with an interest in the land may redeem it at any time before a petition to foreclose the right of redemption is filed in the Land Court, by paying the tax title account plus 8% interest and allowed charges; payment may be made in installments, and the treasurer may extend the time before foreclosure can begin by up to 2 years. The holder of the tax title may generally petition the Land Court to foreclose the right of redemption after 12 months from the sale or taking (sooner in limited cases such as abandoned property or with the owner's written consent). After the Land Court forecloses, the former owner keeps the right to receive any excess equity under the statute's procedures.

MassHousing (the state housing finance agency) assists its own borrowers who cannot make payments at 888-843-6432; other borrowers are told to contact their servicer. MassHousing advises homeowners whose foreclosure is scheduled within the next 7 days to contact the Massachusetts Division of Banks for help, says low-income homeowners at risk of foreclosure may apply for the state RAFT program through the Emergency Housing Payment Assistance Portal, and points to HUD-approved housing counseling agencies and the HOPE Hotline at 888-995-HOPE (4673). By law, the 90-day right-to-cure notice must tell homeowners they may be eligible for help from MassHousing and the Division of Banks.