How Foreclosure Works in Massachusetts

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.